McDonald's Corporation (MCD.US) Q3 U.S. same-store sales turned negative, down 0.2%, with higher average ticket size offsetting the decline.

On November 4, before the U.S. market opened, McDonald's Corporation (MCD.US) reported its third-quarter 2026 results. The report showed that McDonald's Corporation's revenue for the quarter was US$7.157 billion, up only 1% year on year, below the market consensus of about US$7.29 billion; adjusted earnings per share were US$3.57, up 11% year on year, above expectations of about US$3.40; net profit was US$2.486 billion, up 9% year on year. U.S. performance was better than feared. U.S. same-store sales fell 0.2% in the quarter, ending five consecutive quarters of growth, but the decline was smaller than the average analyst estimatethe company warned in late September that the quarter's results would be "slightly negative," partly because a series of low-price menu offerings launched earlier this year failed to draw traffic as expected. The report showed that higher average ticket size largely offset the decline in traffic. CEO Chris Kempczinski said the company's interventions on value strategy were working, and that "the U.S. business continued to improve as the quarter progressed." The U.S. market accounts for about 38% of McDonald's Corporation's revenue, and the company is under pressure to improve domestic performance: it is replacing its disappointing sub-US$3 menu with new value offerings, shifting from short-term promotions to formats that have been well received in the past such as "Extra Value" meals, and restoring in-app offers that had previously been phased out. The company also appointed Skye Anderson as the new president of its U.S. business, whose top priorities include improving the value menu and simplifying restaurant operations. At the same time, the company is pushing drinks to drive trafficlaunching Red Bull energy drinks in August, and rolling out spicy McNuggets and SpongeBob SquarePants Happy Meals in the third quarterand plans to provide franchisees with US$8.5 billion in rent and capital support for upgrades to restaurants, menus, service and marketing. International markets were mixed: same-store sales in International Operated Markets grew only 1.4% year on year, led by Germany and Australia, with France weak; International Developmental Licensed Markets grew 4.2% year on year, led by Japan, while same-store sales in China declined. However, China remains McDonald's Corporation's fastest-growing market for store expansion: as of the end of September, China had 8,395 stores, a net increase of 893 from a year earlier, contributing about 60% of the IDL segment's net store additions (1,424) and making it one of McDonald's Corporation's single markets with the most stores globally and the fastest expansion. The report also noted that equity earnings from the company's associate in China increased year on year, reflecting improved operating performance at local restaurants. Global systemwide sales grew 4% year on year to more than US$38 billion, of which sales from loyalty members exceeded US$11 billion.