McDonald's Beats Profit Estimates Despite Falling US Sales

McDonald's reported third-quarter net income of $2.49 billion, a 9% increase that beat analyst profit-per-share forecasts. Total revenue rose 1% to $7.16 billion, and adjusted earnings per share reached $3.57, surpassing the $3.40 estimate. Following the results and a 4% dividend increase to $1.93 per share, company shares rose 4.2% to $280.45 on November 4.

Despite global comparable sales growth of 1.5%, the company saw a 0.2% decline in US same-store sales, marking its first domestic retreat since early 2025. This dip was driven by falling customer traffic, which CEO Chris Kempczinski attributed to poor value offerings and cost-of-living pressures facing low-income consumers. Strong performance in Germany, Australia, and Japan helped offset the US decline and weakness in France caused by protests.

To recover lost traffic, the company is testing mix-and-match and fixed-price meal bundles at up to 4,000 US locations, with a national rollout planned for early 2027. Other initiatives include temporary $2 breakfast sandwiches and an $8 Quarter Pounder Extra Value Meal. Additionally, the company launched the Next technology and service improvement plan, supported by an $8.5 billion investment to assist franchisees with rising ingredient costs. The company continues its restructuring effort through 2027 and aims for 50,000 global restaurants by 2028.