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McDonald's Shares Rise After Earnings Beat Despite Falling U.S. Same-Store Sales
McDonald's stock climbs about 5% as third-quarter adjusted profit beats forecasts, even as U.S. same-store sales slip.
Key points
- U.S. same-store sales fell 0.2% at restaurants open at least 13 months, better than the 0.5% decline analysts expected.
- Adjusted earnings per share were $3.57 versus $3.38 expected, while revenue was $7.16 billion against $7.29 billion expected.
- Company same-store sales rose 1.5%, lifted by international segments, with the developmental licensed markets, including Japan and China
Why it matters. The results show U.S. demand is still under pressure, and McDonald's is testing two new value menus, with the one that resonates most with customers and franchisees set to roll out across the U.S. in early 2027.
McDonald's reported mixed third-quarter results on Wednesday, with U.S. same-store sales down 0.2% at restaurants open at least 13 months, a smaller decline than the 0.5% drop analysts expected, according to StreetAccount. Adjusted earnings per share came in at $3.57 against $3.38 expected, while revenue of $7.16 billion fell short of the $7.29 billion forecast, based on LSEG.
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McDonald's Shares Rise After Earnings Beat Despite Falling U.S. Same-Store Sales
McDonald's reported mixed quarterly results on Wednesday as traffic to its U.S. restaurants fell. Sales at U.S. restaurants open at least 13 months declined 0.2%, a slight drop in domestic same-store sales. The company has leaned on discounts over the last two years to attract budget-conscious diners. Despite the sales decline, the company's earnings beat expectations and U.S. restaurants showed improvement, and the stock rose. The results show the fast-food chain balancing value promotions against pressure on traffic.