McDonald’s reported mixed quarterly results on Wednesday, with domestic performance falling short of recent quarters but outpacing analyst expectations. The company’s U.S. restaurants that have been open at least 13 months experienced a 0.2% decline in same-store sales, which was better than the 0.5% decrease Wall Street had anticipated.
The company attributed modest improvement to its value-focused initiatives. Chief Executive Chris Kempczinski noted in a statement that conditions in the U.S. market showed signs of improvement as the quarter advanced following the company’s push on value offerings. Chief Financial Officer Ian Borden indicated on the earnings call that same-store sales returned to growth in September after declines in July and August, though he cautioned against assuming continued improvement in the fourth quarter.
McDonald’s strategy centered on promoting its Extra Value Meals and relaunching regional and national promotions through its mobile app to reach its most regular customers. The company is also testing two different value menu concepts—one featuring mix-and-match bundles and another with set menu combinations—with plans to roll out whichever option proves most popular among customers and franchisees in early 2027.
On a company-wide basis, same-store sales rose 1.5%, driven primarily by international performance. The company reported third-quarter net income of $2.49 billion, or $3.51 per share, compared with $2.28 billion, or $3.18 per share, a year earlier. Excluding restructuring charges and other items, the company earned $3.57 per share. Net revenue rose 1% to $7.16 billion. International developmental licensed markets, including Japan and China, reported same-store sales growth of 4.2%, significantly exceeding analyst expectations of 2.1%. The international operated division, which encompasses markets like Australia and Germany, saw same-store sales growth of 1.4%, though this underperformed analyst projections of 2.1%. France represented a weak spot in international operations, with the company citing both economic softness and disruptions related to student protests.
Shares closed more than 6% higher on Wednesday.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI