McDonald's Corporation (NYSE: MCD) reported third-quarter adjusted earnings of $3.57 per share on Wednesday, ahead of analyst expectations, even as comparable sales in its home U.S. market slipped 0.2%. It was the first decline in U.S. comparable sales since early 2025.
Analysts had expected adjusted earnings of $3.38 per share and a steeper 0.5% drop in U.S. comparable sales. Revenue rose 1% to $7.16 billion, below the $7.28 billion analysts had forecast. Shares rose more than 5% in morning trading on Wednesday.
The U.S. result reflects a tougher market for fast-food chains. U.S. fast-food traffic fell 2.6% across the sector in the third quarter, according to restaurant industry consultant Revenue Management Solutions. McDonald's said fewer U.S. guest visits were largely offset by higher spending per order.
"In the U.S., we're encouraged by improvement as the quarter progressed following our intervention on value," Chris Kempczinski, Chairman and CEO, said in the earnings release. McDonald's restored regional and national deals in its app and shifted marketing spending toward value meals, and U.S. same-store sales moved into positive territory in September and October.
#McDonald's Tests New Value Bundles at 1,900 U.S. Restaurants
McDonald's has more than 45,000 restaurants in over 100 countries. About 95% are owned and operated by independent local business owners.
The company plans to introduce new value meal bundles early next year. Kempczinski told analysts on a conference call that McDonald's recently began an eight-week test of mix-and-match and fixed-price bundles at 1,900 U.S. restaurants, and that franchisees operating approximately 4,000 additional U.S. restaurants have already introduced similar bundles.
Kempczinski told analysts that stronger entry-level value offers were particularly important for lower-income consumers. He said the company's earlier efforts had fallen short because they lacked sufficiently compelling low-price options.
The goal is to give customers a compelling reason to choose McDonald's, whether they want an affordable individual item, a complete meal or a digital offer through the company's mobile app.
McDonald's has adjusted its U.S. value offers for more than two years as it competes with rivals such as Taco Bell, which sells 10 items at $3 or less. Adoption has been uneven. Kempczinski said in August that only 60% of U.S. restaurants were offering the McValue menu revamped in April.
#International Markets Lift Global Comparable Sales 1.5%
Global comparable sales rose 1.5%, compared with 3.6% growth a year earlier. International Developmental Licensed Markets grew 4.2%, led by Japan, while sales in China declined. International Operated Markets rose 1.4%, with gains in Germany and Australia partly offset by France.
Net income rose 9% to $2.49 billion, or $3.51 per share. The quarter included $56 million in pre-tax charges, mainly restructuring costs tied to an internal program the company calls Accelerating the Organization. Excluding those and prior-year charges, operating income rose 8%.
McDonald's said the profit gain was driven mainly by higher other operating income and higher franchised margins, which rise with sales at franchised restaurants. Sales at company-owned restaurants fell 3% to $2.48 billion, while revenue from franchised restaurants rose 3% to $4.49 billion.
Systemwide sales, which include all restaurants whether run by the company or franchisees, rose 4% to more than $38 billion. Sales to loyalty program members across 70 markets topped $11 billion in the quarter and reached $41 billion over the past 12 months.
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#McDonald's Quarterly Dividend Reaches $1.93 Per Share
McDonald's also reaffirmed its previously announced 4% increase in the quarterly cash dividend to $1.93 per share, originally declared in September. Over the first nine months of 2026, revenue rose 5% to $20.77 billion and diluted earnings per share rose 8% to $9.61.
Restructuring charges reached $155 million for the nine months, up from $148 million a year earlier. The U.S. recovery also depends on franchisees, who own 95% of McDonald's U.S. restaurants, taking up the value offers being tested.
Kempczinski said the company is focused on building from the recent U.S. improvement and investing in its next phase of growth. Falling U.S. guest counts, uneven franchisee adoption of value deals, weaker sales in China and France, and a revenue shortfall against forecasts remain key risks to that outlook.