TLDR
- McDonald’s Q3 earnings of $3.22 per share fell short of the $3.32 analyst estimate, though revenue matched forecasts at $7.1 billion.
- US same-store sales climbed 2.5%, exceeding Wall Street’s 2.2% projection for the second consecutive quarter.
- The fast-food chain cut combo meal prices by 15% and reintroduced Snack Wraps to attract price-conscious consumers.
- Global same-store sales grew 3.6% while systemwide sales across all locations increased 6%.
- CEO Chris Kempczinski credited value offerings and menu innovation for driving customer traffic despite a “challenging environment.”
McDonald’s delivered mixed third-quarter results on Wednesday. The company’s earnings disappointed Wall Street while sales figures exceeded predictions.
The burger chain reported adjusted earnings of $3.22 per share. Analysts had anticipated $3.33. Revenue reached $7.1 billion, matching consensus estimates.
US same-store sales provided encouraging news. They jumped 2.5% compared to the previous year. This outpaced the 2.2% growth Wall Street expected.
The performance marked the second straight quarter where sales topped forecasts. Growth matched the 2.5% rate from the prior quarter.
Value Strategy Drives Customer Traffic
McDonald’s has aggressively pursued value-focused consumers this year. The company slashed prices on eight popular combo meals by roughly 15% in September.
The chain brought back its Snack Wrap after a lengthy absence. It also launched the $5 Meal Deal and Buy One Get One for $1 promotions.
These initiatives target customers who cut back on dining out due to inflation. Many consumers shifted to cooking at home to save money.
CEO Chris Kempczinski said the company is “fueling momentum by delivering everyday value and affordability.” He highlighted menu innovation and marketing as key factors.
Global same-store sales rose 3.6% during the quarter. This matched expectations following a 3.8% increase in Q2.
Systemwide sales, covering both company and franchise locations, grew 6%. However, sales at company-operated restaurants dropped 3%.
Menu Expansion and Late Night Push
McDonald’s expanded beyond its traditional menu offerings. The chain introduced McCrispy Strips and rolled out new beverage options.
New drinks include coffee beverages, refreshers, and “dirty sodas” with add-ins. These products stem from the company’s CosMc beverage concept.
Many US locations extended late-night hours. This move targets younger Gen-Z customers looking for convenient dining options.
CFO Ian Borden previously stated that “consumer headwinds are certainly expected to persist through the remainder of the year.” The company maintained its 2025 guidance despite challenges.
Analyst Outlook Remains Positive
Wall Street sees continued growth potential. Citi analyst Jon Tower noted that “drivers into the fourth quarter and 2026 remain in place for US sales to re-accelerate.”
The company plans to relaunch its Monopoly game promotion. The popular campaign returns both digitally and physically after nearly a decade away.
Restaurant Brands International posted strong results last week. Its third-quarter systemwide sales jumped 6.9% year-over-year, driven by Burger King growth.
McDonald’s stock closed at $299.21 on Tuesday, up 3.2% for the year. Shares fell 0.7% in premarket trading after the earnings release.
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