McDonald's reported stronger sales in the third quarter, fueled by value meals and budget-friendly promotions, but profits came in lower than analysts expected as many Americans continued cutting back on dining out.
According to Reuters, Global comparable sales rose 3.6% in the quarter ending Sept. 30, slightly above Wall Street's 3.55% estimate, while US same-store sales grew 2.4%.
The increase was driven mainly by higher spending per visit rather than more customers, showing that even as prices rise, fewer people are visiting restaurants.
CEO Chris Kempczinski said the results show "McDonald's ability to deliver sustainable growth even in a challenging environment."
He noted that high living costs are still squeezing lower-income families. "As long as real incomes remain under pressure, we don't expect major changes in traffic from this group," he said during the company's earnings call.
To attract cost-conscious diners, McDonald's has leaned on value deals such as its $5 Meal Deal and recently reintroduced Snack Wraps, priced at $2.99.
The chain has also expanded its "Extra Value Meals" and partnered with franchisees to standardize a 15% discount on combo meals across the US.
McDonald’s beat estimates for third-quarter global comparable sales, as affordable meal offers helped whet demand even as consumers remained selective with their spending https://t.co/2VneTsKvgd pic.twitter.com/PkL6ihtIsg
— Reuters (@Reuters) November 5, 2025
McDonald's Reports Higher Sales, Lower Earnings in Q3
These efforts have helped boost sales among budget-minded consumers while also keeping higher-income customers engaged.
"Value matters to everyone — no matter your income," Kempczinski said. "People want to feel like they're getting a good deal."
Despite the sales lift, McDonald's missed earnings expectations. Adjusted profit per share came in at $3.22, below the $3.33 analysts had predicted.
Total revenue increased 3% to $7.08 billion, just shy of the $7.1 billion forecast. The company also pointed to a higher tax rate as one factor weighing on profit.
McDonald's said it expects stronger US growth in the final quarter of the year, citing early success from its Monopoly promotion and new drink options inspired by its CosMc spin-off brand.
Globally, sales in international operated markets rose 4.3%, led by Australia and Germany, while licensed markets such as Japan grew 4.7%, US Money reported.
Shares of McDonald's rose about 1% Wednesday morning after the report, as investors reacted positively to the company's steady growth despite economic challenges.
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