McDonald’s US sales rise — but profits fall short as it warns Americans are dining out less
McDonald’s reported its third‑quarter earnings in early Wednesday, showing a lift in sales but falling short of analyst expectations on profits.
The fast‑food giant’s same‑store sales climbed 2.4% in the U.S., the second consecutive quarter of growth. That beat the consensus estimate of 1.9% and helped drive a 3.6% rise in overall same‑store sales, a reversal of the 1.5% decline seen in the same period last year. Management said the bump comes from a larger average check, suggesting diners are spending more even as the industry battles value wars.
Net income hit $2.28 billion, or $3.18 per share—up slightly from $2.26 billion a year ago. When one‑time items and restructuring expenses are removed, earnings per share were $3.22, a touch below the $3.33 analysts had expected. Revenue added 3% to $7.08 billion but missed the $7.10 billion forecast.
Shares of the world’s biggest quick‑service restaurant jumped about 2% in early trade after the earnings release.
CEO Chris Kempczinski said the results demonstrate the chain’s ability to grow sustainably, even when consumers cut back on dining out. “We see a split in consumer traffic,” he noted. “Lower‑income diners are down almost double‑digit, while higher‑income customers are still pulling in strong growth.”
Kempczinski warned that “economic concerns” will keep weighing on customer spending into 2026, and the company is doubling down on its value‑menu strategy. Highlights include the return of the $2.99 Snack Wrap after nine years and the reintroduction of Extra Value Meals—$5 breakfast combos and $8 dinner sets—launched in September.
Financial officer Ian Borden added that the Snack Wrap launch was among the most successful chicken deals in U.S. history, with nearly one in five customers buying a wrap in the first month.
McDonald’s also reported solid performance overseas: same‑store sales in its internationally operated markets (Australia, Canada, etc.) rose 4.3%, and sales in its licensed international markets grew 4.7%, driven largely by Japan.
The chain plans to keep pushing value‑prices, promotions such as the McDonald’s Monopoly game, and new drink options from its recent CosMc spin‑off to lift U.S. sales in the next quarter.
While the company’s U.S. sales may see a slowdown in future quarters, its global divisions are expected to maintain momentum. The latest quarterly results follow a tough fourth quarter last year, which saw a decline in domestic sales after a food‑borne illness outbreak.
Source: New York Post
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