McDonald's stock rises as earnings beat, U.S. restaurants show improvement — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- McDonald's reported adjusted EPS of $3.57 versus the $3.38 Wall Street expected, with net income of $2.49 billion ($3.51 per share) versus $2.28 billion ($3.18 per share) a year earlier.
- McDonald's U.S. same-store sales fell 0.2% at restaurants open at least 13 months, a smaller drop than the 0.5% decline analysts anticipated.
- Ian Borden said U.S. same-store sales returned to growth in September after falling in July and August, but clarified that he had not said U.S. same-store sales would be better in the fourth quarter.
- McDonald's global same-store sales rose 1.5%, above the 1.3% expected, with international developmental licensed markets including Japan and China up 4.2% against a 2.1% forecast — though its international operated division managed only 1.4% versus 2.1% projected.
- McDonald's shares rose about 5% in morning trading even as revenue of $7.16 billion fell short of the $7.29 billion expected, with net revenue up just 1%.
- Extra Value Meals took center stage in McDonald's U.S. turnaround, with the chain restarting regional and national promotions in its mobile app and testing two new value menus — one mix-and-match bundle menu, one set-combo menu — with the stronger option set for nationwide rollout in early 2027.
- France was a weak spot, where franchisees recently voted on a strategy to turn the business around amid a softer economy and short-term disruptions tied to student protests.
Why it matters: The market rewarded profit over top line: adjusted EPS of $3.57 topped the $3.38 estimate, but revenue of $7.16 billion missed the $7.29 billion forecast. The roughly 5% share gain came alongside international licensed-market same-store sales up 4.2%, while the 0.2% U.S. decline and the international operated miss leave domestic traffic and the international operated business as the unresolved pieces.
Ask SkimNews
