** McDonald's MCD.N posted a surprise increase in its global comparable sales in the fourth quarter on Monday, aided by demand for its cheaper items and discounted offerings from diners in the Middle East, Japan and China

** Stock rated "buy" on avg by 40 brokerages; median PT is $335 - LSEG

DEMAND ENVIRONMENT CHALLENGING, BUT OUTLOOK LESS GLOOMY

** Morgan Stanley ("overweight"; PT: $340) says, "MCD does generally feel relatively in control of its future right now, given actions planned in major markets"

** Adds despite persisting industry challenges, outlook is less gloomy

** BTIG ("neutral") says transitioning lower-income customers from current discounts to paying full prices for certain items in the coming quarters will be a challenge

** Gordon Haskett ("buy"; PT: $335) says McDonald's U.S. and international top line efforts will become increasingly "aggressive" going forth

** Adds demand environment for quick-service restaurants (QSRs) sector, which includes fast food chains, in U.S. and international markets remains challenging

** Jefferies ("buy"; PT: $349) sees co best positioned to outperform peers in 2025 through attractive deals and menu options and brand's extensive global presence

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))