Key Highlights

  • Adjusted EPS of USD 3.57 topped the USD 3.38 estimate, while Revenue of USD 7.16 billion trailed USD 7.28 billion.
  • Global comparable sales rose 1.5%, with the U.S. down 0.2% and developmental licensed markets up 4.2%.
  • Operating income increased 7% to USD 3.6 billion, and systemwide sales grew 4% to over USD 38 billion.
  • The quarterly Dividend was raised 4% to USD 1.93 per share, payable on December 15, 2026.

McDonald's (NYSE:MCD) reported third quarter adjusted EPS of USD 3.57, compared with the USD 3.38 estimate and USD 3.22 a year earlier. GAAP diluted EPS was USD 3.51, up 10% from USD 3.18, after USD 0.06 per share of restructuring charges. Revenue of USD 7.16 billion rose 1% but fell short of the USD 7.28 billion estimate.

Comparable Sales and Regional Mix

Global comparable sales increased 1.5%, down from 3.6% a year earlier. U.S. comparable sales declined 0.2% as lower guest counts were largely offset by higher average check. International Operated Markets rose 1.4%, led by Germany and Australia and partly offset by France. International Developmental Licensed Markets gained 4.2%, with Japan leading and China negative.

Chairman and chief executive Chris Kempczinski said U.S. trends improved as the quarter progressed following the company's move on value pricing. Systemwide sales rose 4% to over USD 38 billion, and loyalty members across 70 markets generated more than USD 11 billion of those sales in the quarter. The system ended September with 46,554 restaurants, up from 44,599, and about 95% are run by independent owners.

Margins, Cash and Capital Returns

Operating income rose 7% to USD 3.595 billion, and Net Income increased 9% to USD 2.486 billion. Excluding restructuring charges of USD 56 million, adjusted Operating Income rose 8%. Franchised margins grew 3% to USD 3.8 billion, helped by sales-driven growth, while other operating income reached USD 139 million, up from USD 37 million. Company-operated margins were flat at USD 392 million.

Diluted shares fell to 708.3 million from 715.9 million. The company paid a dividend of USD 1.86 per share, about USD 1.3 billion, and repurchased 1.9 million shares for USD 519 million in the quarter. Over nine months, repurchases totaled 6.2 million shares, or USD 1.8 billion, and dividends paid reached USD 4.0 billion.

2026 Outlook Items

McDonald's projects that net restaurant unit growth contributes about 2.5% to 2026 systemwide sales growth in constant currencies, with selling, general and administrative expenses near 2.2% of systemwide sales. Management guided to an operating Margin in the mid-to-high 40% range and an effective tax rate between 21% and 23%. Interest expense is projected to rise between 4% and 6%.

Capital expenditures are projected at about USD 3.7 billion. The company targets roughly 2,500 openings and about 2,100 net additions in 2026, with a goal of 50,000 global units by the end of 2028. It also targets a free Cash Flow conversion rate in the low-to-mid 80% range. The Accelerating the Organization restructuring program is scheduled to run through 2027.

Metrics to Track

Global comparable sales growth of 1.5% compares with 3.6% in the year-earlier quarter, while the U.S. reading of negative 0.2% compares with positive 2.4%. Quarterly adjusted EPS of USD 3.57 compares with USD 9.78 for the first nine months, and the nine month GAAP figure is USD 9.61. The 46,554 restaurants at September 30 compare with a 2028 target of 50,000, and the USD 1.93 dividend compares with USD 1.86 paid in the quarter.