McDonald’s (NYSE:MCD) Releases Earnings Results, Beats Expectations By $0.19 EPS

McDonald’s (NYSE:MCD) issued its earnings results on Wednesday. The fast-food giant reported $3.57 EPS for the quarter, topping analysts’ consensus estimates of $3.38 by $0.19, FiscalAI reports. The firm had revenue of $7.16 billion for the quarter, compared to the consensus estimate of $7.28 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. The company’s revenue was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.22 earnings per share.

Here are the key takeaways from McDonald’s’ conference call:

• Global comparable sales rose 1.5% and system sales grew 4% in constant currency. U.S. comparable sales fell 0.2%, but turned positive in September, with management citing improving baseline trends into October.
• Adjusted EPS was $3.57, up 11% year over year on a constant-currency basis. International comparable sales increased 1.4% in operated markets and 4.2% in developmental licensed markets, though France and China remained areas of weakness.
• McDonald’s is testing new U.S. entry-level value bundles at about 1,900 restaurants, while franchisees at roughly 4,000 more restaurants have adopted similar offers. The company plans to use test results to shape a national program targeted for early 2027; management did not provide a specific fourth-quarter U.S. sales forecast.
• Specialty beverages continued to generate incremental sales across several markets, with U.S. beverage-including checks about 50% above the full-day average and most units sold after lunch. McDonald’s plans to expand the platform in Europe and views beverages as a long-term growth opportunity.
• The company expects about 2,500 gross restaurant openings in 2026, below its prior target of 2,600, and capital spending of about $3.7 billion, at the low end of its range. Management also cited continued disruption in France and a challenging consumer environment in China.

McDonald’s Price Performance

MCD stock traded down $2.91 during mid-day trading on Thursday, reaching $277.31. 4,905,004 shares of the company’s stock were exchanged, compared to its average volume of 4,344,268. McDonald’s has a 12-month low of $229.20 and a 12-month high of $341.75. The stock’s 50 day moving average is $248.20 and its 200 day moving average is $282.85. The company has a market cap of $196.24 billion, a price-to-earnings ratio of 22.53, a price-to-earnings-growth ratio of 3.01 and a beta of 0.42.

McDonald’s Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be given a dividend of $1.93 per share. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Tuesday, December 1st. McDonald’s’s dividend payout ratio (DPR) is currently 60.44%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. TD Cowen boosted their price target on McDonald’s from $270.00 to $285.00 and gave the company a “hold” rating in a report on Wednesday. HSBC dropped their price objective on shares of McDonald’s from $357.00 to $356.00 and set a “buy” rating on the stock in a research note on Wednesday, August 5th. Needham & Company LLC reaffirmed a “buy” rating on shares of McDonald’s in a report on Monday, September 21st. KeyCorp boosted their target price on shares of McDonald’s from $280.00 to $307.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Argus decreased their target price on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a research note on Wednesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $296.61.

McDonald’s News Roundup

Here are the key news stories impacting McDonald’s this week:

• Positive Sentiment: Third-quarter EPS of $3.57 exceeded the $3.38 consensus and grew from $3.22 a year earlier. Stronger franchised margins and international performance helped offset softer U.S. results. McDonald’s Q3 earnings analysis
• Positive Sentiment: KeyCorp and Wells Fargo raised their price targets to $307 and $300, respectively, and maintained overweight ratings—potential support for investor confidence. KeyCorp rating information Wells Fargo rating information
• Neutral Sentiment: Management is pursuing a U.S. sales recovery with affordable bundles, digital promotions and beverage expansion. These initiatives could attract value-conscious diners, though their impact on sales and margins remains to be proven. Q3 earnings call highlights
• Negative Sentiment: Revenue of $7.16 billion missed analyst expectations of about $7.28 billion, while U.S. comparable sales fell 0.2%—the first decline in six quarters—as cost-conscious consumers pulled back. This domestic weakness helps explain why the earnings beat has not removed pressure on the stock. Reuters report on U.S. sales

McDonald’s Company Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.