McDonald’s reported mixed third-quarter financial results on Wednesday as international growth and higher customer spending offset a modest slide in domestic store traffic, sending company shares up about 5%.
Sales at U.S. locations open for at least 13 months slipped 0.2% during the period, according to company reports. While domestic sales fell, the drop was smaller than the 0.5% contraction anticipated by Wall Street analysts surveyed by StreetAccount and Bloomberg. Across all global markets, comparable sales increased 1.5%, surpassing consensus expectations of 1.3% to 1.4% but slowing from 3.6% growth in the same period last year.
Value promotions counter traffic slump
Customer visits to domestic restaurants declined compared to a year earlier, according to figures from Placer.ai cited by Yahoo Finance. However, the hamburger giant cushioned the impact because guests spent more money during each visit.
Chief Executive Officer Chris Kempczinski said in a statement that domestic performance showed signs of turnaround as the quarter unfolded. After dropping in July and August, U.S. comparable sales resumed growth in September, Chief Financial Officer Ian Borden told investors on an earnings call.
“In the U.S., we’re encouraged by improvement as the quarter progressed following our intervention on value,” Kempczinski said.
Fast-food chains have spent the past two years battling consumer fatigue over higher menu prices. McDonald’s executives credited revamped marketing around Extra Value Meals, app-based discounts, and bundled packages. Kempczinski noted that the chain’s $5 and $6 Meal Deals produced a 7% year-over-year revenue gain, calling them a proven platform to generate incremental business while acknowledging that the company must still refine its entry-level value options.
Beverage sales also provided check growth, aided by new offerings like Red Bull energy drinks. On Nov. 3, the company launched a limited-time holiday lineup featuring specialty coffees and cranberry beverages.
International business drives quarterly profit
Global results were heavily lifted by McDonald’s international developmental licensed division, which includes China and Japan. That unit posted a 4.2% jump in comparable sales, doubling analysts’ forecasts of 2.1%, CNBC reported.
Performance was softer in the international operated division, which covers markets such as Germany and Australia. The unit grew 1.4%, falling short of the 2.1% increase expected by analysts. Executives cited weakness in France, where local franchisees recently approved an operational turnaround plan following headwinds from a sluggish economy and disruptions related to student protests.
Overall, net income rose to $2.49 billion, or $3.51 per share, compared to $2.28 billion, or $3.18 per share, in the third quarter of 2025. Adjusted earnings per share reached $3.57, comfortably beating Wall Street projections of $3.40. Total revenue climbed 1% to $7.16 billion, coming in slightly below analyst expectations of roughly $7.4 billion.
Testing changes for 2027
Looking ahead, McDonald’s USA President Skye Anderson, appointed last quarter, is overseeing tests of two new value frameworks: mix-and-match selections and fixed meal bundles. The company plans to evaluate customer and franchisee feedback before rolling out the winning format nationwide in early 2027.
While management expressed optimism about baseline customer foot traffic heading into October, Borden cautioned analysts that he was not forecasting improved domestic comparable sales for the fourth quarter.
