McDonald's Corp (NYSE:MCD, ETR:MDO) reported third-quarter earnings that slightly missed Wall Street expectations on revenue and adjusted earnings per share but saw modest strength in US same-store sales, sending shares up 3.3% in early trading on Wednesday.
The fast-food giant posted revenue of $7.08 billion for the quarter, up 3% from a year ago but below the $7.10 billion analysts had expected.
Adjusted earnings per share came in at $3.22, short of the $3.32 consensus estimate.
Global comparable sales increased 3.6%, in line with expectations, while US same-store sales rose 2.4%, slightly above the 2.14% consensus. International Operated Markets posted a 4.3% increase, modestly surpassing forecasts, while International Developmental Licensed Markets lagged expectations at 4.7% versus an anticipated 5.37%.
“We increased global systemwide sales by 6% and grew comp sales across all segments… delivering everyday value, menu innovation, and compelling marketing,” CEO Chris Kempczinski said.
UBS analysts noted that the results included a modest earnings miss due to higher nonoperating expenses and taxes, but operating profit slightly beat expectations. The analysts highlighted that US sales momentum will be a key focus in the fourth quarter, with McDonald’s well-positioned to capture market share through value initiatives, menu innovation, and digital gains.
The company reiterated its 2025 outlook, planning nearly 1,800 net new restaurants, general and administrative expenses at roughly 2.2% of system sales, adjusted operating margins in the mid-to-high 40% range, capital expenditures of $3 billion to $3.2 billion, and a 4% increase in interest expense.