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McDonald’s Q3 EPS beat estimates and shares rose 2% premarket, while revenue missed and U.S. comparable sales declined amid weaker customer traffic. Source: Benzinga.
The article
McDonald's Earnings Beat Estimates, but US Customer Traffic Remains Under Pressure McDonald’s Corp. (NYSE:MCD) reported mixed third-quarter results on Wednesday, as earnings topped Wall Street estimates but revenue came in below expectations. Shares were trading about 2% higher in Wednesday’s premarket session. The fast-food chain reported adjusted earnings of $3.57 per share, beating the analyst consensus estimate of $3.38. Revenue increased 1% year over year on both a reported and constant-currency basis to $7.157 billion, missing the Street estimate of $7.285 billion. Sluggish US Business Global comparable sales rose 1.5% during the quarter. U.S. comparable sales declined 0.2%, as negative comparable guest traffic was largely offset by positive check growth. International Operated Markets comparable sales increased 1.4%, led by Germany and Australia, partly offset by France. International Developmental Licensed Markets increased 4.2%, led by Japan, partly offset by China. Chairman and CEO Chris Kempczinski highlighted continued global growth, supported by solid international performance and improving U.S. business trends as the quarter progressed following the company’s value-focused initiatives. Global systemwide sales increased 4% year over year to over $38 billion for the quarter. Systemwide sales to loyalty members were more than $11 billion for the quarter and $41 billion for the trailing 12-month period. McDonald’s operated 46,554 restaurants worldwide as of Sept. 30, 2026. Profit and Balance Sheet Consolidated operating income increased 7% to $3.6 billion, impacted by a pre-tax charge of $56 million related to restructuring charges associated with the company’s internal effort to modernize ways of working (Accelerating the Organization). Diluted earnings per share rose 10% to $3.51, while adjusted diluted earnings per share rose 11% to $3.57. The company increased its quarterly cash dividend by 4% to $1.93 per share, payable on Dec. 15. During the quarter, the company paid $1.3 billion in dividends and repurchased 1.9 million shares for $519 million. Outlook McDonald’s expects net restaurant expansion to contribute approximately 2.5% to 2026 systemwide sales growth, on a constant currency basis. The company expects its full-year 2026 operating margin to be in the mid-to-high 40% range. McDonald’s expects capital expenditures of approximately $3.7 billion in 2026, primarily directed toward new restaurant openings across the U.S. and International Operated Markets. The company plans to open about 2,500 restaurants globally in 2026, including 700 in the U.S. and International Operated Markets. It expects approximately 2,100 net restaurant additions, targeting 50,000 global restaurants by the end of 2028. Management expects a free cash flow conversion rate in the low-to-mid 80% range for 2026. MCD Stock Price Activity: McDonald’s shares are trading higher by 2.07% at $268.48 during premarket trading on Wednesday, according to Benzinga Pro data. Photo: Sombat Muycheen / Shutterstock Read Also: Lockheed Martin, RTX, Northrop Stocks Fall After Democratic Midterm Sweep Raises Questions Over Trump's Defense Spending Plan