Earnings
McDonald's US Same-Store Sales Slip 0.2% in Third Quarter as Traffic Falls, but Profit Rises
The burger chain's adjusted earnings beat forecasts while revenue missed, and its CEO said US trends improved as the quarter went on.
HedgeWeekly News Desk ·
McDonald's reported a 0.2% decline in US comparable sales for the third quarter on Wednesday, according to its earnings release. The company said negative guest counts were largely offset by higher average checks. An Associated Press report described it as the chain's first US decline since early 2025.
Group revenue rose 1% to $7.16 billion, below the $7.28 billion Wall Street expected, the AP reported. Net income increased 9% to $2.49 billion. Adjusted earnings per share were $3.57, up from $3.22 a year earlier and ahead of the $3.38 analysts forecast. Global comparable sales grew 1.5%, led by Germany and Australia in the company's operated markets and by Japan in its licensed markets, partly offset by France and China.
Chief executive Chris Kempczinski said the company was encouraged by improvement in the US as the quarter progressed after its value push. The AP reported that US comparable sales turned positive in September and October. McDonald's began an eight-week test of mix-and-match and fixed-price bundles at 1,900 US restaurants, and about 4,000 franchisees launched their own bundles without waiting for the results. Franchisees own 95% of US restaurants, and only 60% were offering the revamped value menu in August. Foot traffic across US fast food fell 2.6% in the quarter, according to Revenue Management Solutions. The shares rose more than 5% in morning trading.
For investors, the quarter shows a company growing profit through pricing and franchise income while its US customer count shrinks, a pattern that depends on how quickly value offers win visits back from lower-income diners. The release carries no forward guidance, so the next checkpoints are the results of the bundle test and whether the September and October US gains hold into the fourth quarter. The quarterly dividend was raised 4% to $1.93 a share.