McDonald’s stock rises as US sales top forecasts, company continues value push amid ‘challenging environment’

McDonald’s (MCD) on Wednesday reported US same-store sales that topped forecasts for the second straight quarter as it continues to focus on value offerings amid what the company called a “challenging environment.”

The company reported that its US same-store sales increased 2.5% over the same period last year, driven by higher check growth. That’s more than the 2.2% Wall Street expected and in line with the 2.5% growth seen in the prior quarter, according to Bloomberg data.

Global same-store sales increased 3.6% during the quarter, in line with estimates after a 3.8% rise in Q2.

Adjusted earnings per share tallied $3.22, less than the $3.32 that was expected, on revenue of $7.1 billion, in line with estimates.

“We’re fueling momentum by delivering everyday value and affordability, menu innovation, and compelling marketing that continue to bring customers through our doors,” CEO Chris Kempczinski said in a release.

McDonald’s reported its systemwide sales, which include both company-operated and franchised locations, grew 6%.

McDonald’s stock rose as much as 2% on Wednesday following the results.

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During the third quarter, McDonald’s announced the return of the Snack Wrap and struck a deal with its US franchisees to lower the cost of some combo meals, as fast food companies continue to compete on broader value offerings and consumer wallets are stretched by inflation and a softening labor market. The return of its Monopoly for the first time in nearly a decade — and for the first time digitally — boosted app downloads and digital sales growth in the latest quarter.

On its earnings call with investors, Kempczinski said the chain remains “cautious” about the health of the US consumer, calling out what he sees as a “bifurcated consumer base.”

Traffic among lower-income cohorts declined nearly double digits in the third quarter, while higher income consumers “remained strong” he said, increasing nearly double digits.

CFO Ian Borden said the company expects US same-store sales growth to accelerate in the fourth quarter, more so than Q3 results, as it laps last year’s E. coli outbreak in late October.

However, Kempczinski said 2026 will see similar pressure from consumers, especially those making less.

“Think about the low income consumer and …the pressures that they face …rents are at pretty high levels …food prices, whether it’s in restaurants or grocery…child care is high,” Kempczinski said.

The only way to change this sentiment, in Kempczinski’s views, is if there is “some relief around cost of living and need to feel like real incomes are growing.”

Wall Street, for its part, is optimistic that the company’s recent actions will continue to turn tide to win back consumers.

Citi analyst Jon Tower told Yahoo Finance the company’s sales rebound is, “a combination of value ongoing every day as well as more innovation from a product standpoint and consistency with the innovation hitting the menu.”

McDonald’s is expected to add new drinks inspired by its short-lived CosMc beverage concept. Borden said the roll out remains in its early days, but the company is “encouraged by the reaction.”

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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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