McDonald’s released quarterly earnings results on Wednesday that presented a mixed picture for the fast-food chain. Domestic same-store sales declined 0.2% at locations open for at least 13 months, yet this performance exceeded the 0.5% decline that Wall Street analysts had anticipated, based on a StreetAccount survey.
The company’s chief executive noted encouragement about the trajectory, stating that U.S. operations showed improvement as the quarter progressed following the company’s strategic focus on value offerings. The chief financial officer indicated that same-store sales rebounded to growth in September after declining in July and August, though he did not suggest further improvements would necessarily continue into the fourth quarter.
McDonald’s has intensified efforts to stabilize its U.S. operations through expanded discounting and promotional activities. The chain concentrated marketing efforts on its Extra Value Meals and resumed regional and national promotions via its mobile app, which proved particularly relevant to loyal customers. The company is currently testing two different value menu approaches—one featuring customizable bundles and another offering preset item combinations—with plans to roll out the better-performing option across U.S. locations in early 2027.
International operations delivered stronger results, with overall same-store sales rising 1.5% and surpassing analyst expectations of 1.3% growth. The developmental licensed markets segment, encompassing Japan and China, recorded 4.2% same-store sales growth, significantly outperforming the projected 2.1% increase. The operated international division, including markets such as Australia and Germany, posted 1.4% growth but underperformed the anticipated 2.1% increase. France emerged as a weakness, with the company attributing the slowdown to a softer economy and disruptions from recent student protests.
Financial results showed net income of $2.49 billion, or $3.51 per share, compared with $2.28 billion, or $3.18 per share, one year prior. Adjusted earnings reached $3.57 per share. Net revenue increased 1% to $7.16 billion. Stock price performance reflected investor confidence, with shares closing up more than 6% on the day.
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