What a difference a penny makes. In January, McDonald's (MCD) missed earnings by a penny, and the stock got hammered. Thursday the company beat the Street by a penny and the stock jumped 8 percent. Analysts are saying once again that McDonald's shares are poised to recoup their losses.

The results from the quarter were strong. The burger giant said net income for the three months ended March 31, 2000 was $450.9 million or 33 cents a share, compared with $402.7 million, or 29 cents a diluted share, in the year-ago quarter.

A consensus of Wall Street analysts showed McDonald's first quarter earnings of 32 cents a share, according to First Call/Thomson Financial, which tracks such data.

Sales at company-owned and franchised restaurants rose 8 percent to $9.5 billion, compared with $8.8 billion in the year-ago period. Strong business in Europe and Asia also helped push sales higher. Analysts said McDonald's also benefited from some successful new products like the McFlurry and bagel sandwiches. In short, McDonald's business is improving on several fronts. "I thought it was a very good quarter. It shows they have very good momentum, particularly in the developed markets - such as North America and Europe. "I think this bodes well for a good 2000," said Patrick Schumann, restaurant analyst, Edward Jones. Another analyst said the results should help McDonald's shares recoup their losses.

"We think the stock has seen its low here for 2000. Investor enthusiasm will continue to build now that we're starting to see some tangible evidence of a rebound abroad," said Peter Oakes, restaurant analyst, Merrill Lynch. One other factor helping the stock Thursday is news that McDonald's will buy ack an additional $1 billion in outstanding stock.