McDonald's Corp. (NYSE:MCD) served up a mixed third-quarter report on Wednesday. The earnings beat, the revenue missed, and the stock still went up. Wall Street, it turns out, is willing to forgive a lot when the profit line looks good.
Shares were trading about 2% higher in Wednesday's premarket session.
The fast-food giant reported adjusted earnings of $3.57 per share, comfortably ahead of the analyst consensus estimate of $3.38. Revenue increased 1% year over year on both a reported and constant-currency basis to $7.157 billion, but that fell short of the Street's $7.285 billion estimate.
The US Business Is Still a Work in Progress
Global comparable sales rose 1.5% during the quarter. That's growth, technically. But the details matter here.
U.S. comparable sales declined 0.2%, as negative comparable guest traffic was largely offset by positive check growth. Translation: fewer people came through the doors, but those who did spent more. That's a familiar pattern in the restaurant business these days, and it's not exactly the kind of growth that warms an investor's heart.
International Operated Markets comparable sales increased 1.4%, led by Germany and Australia, partly offset by France. International Developmental Licensed Markets increased 4.2%, led by Japan, partly offset by China.
Chairman and CEO Chris Kempczinski highlighted continued global growth, supported by solid international performance and improving U.S. business trends as the quarter progressed following the company's value-focused initiatives. So the U.S. picture isn't great, but it's getting less bad. That counts for something.
Global systemwide sales increased 4% year over year to over $38 billion for the quarter. Systemwide sales to loyalty members were more than $11 billion for the quarter and $41 billion for the trailing 12-month period. McDonald's operated 46,554 restaurants worldwide as of Sept. 30, 2026.
Profits, Dividends, and a Little Restructuring Charge
Consolidated operating income increased 7% to $3.6 billion, impacted by a pre-tax charge of $56 million related to restructuring charges associated with the company's internal effort to modernize ways of working (Accelerating the Organization).
Diluted earnings per share rose 10% to $3.51, while adjusted diluted earnings per share rose 11% to $3.57.
The company increased its quarterly cash dividend by 4% to $1.93 per share, payable on Dec. 15. During the quarter, the company paid $1.3 billion in dividends and repurchased 1.9 million shares for $519 million.
What's on the Menu for 2026
McDonald's expects net restaurant expansion to contribute approximately 2.5% to 2026 systemwide sales growth, on a constant currency basis. The company expects its full-year 2026 operating margin to be in the mid-to-high 40% range.
Capital expenditures are expected to be approximately $3.7 billion in 2026, primarily directed toward new restaurant openings across the U.S. and International Operated Markets. The company plans to open about 2,500 restaurants globally in 2026, including 700 in the U.S. and International Operated Markets. It expects approximately 2,100 net restaurant additions, targeting 50,000 global restaurants by the end of 2028.
Management expects a free cash flow conversion rate in the low-to-mid 80% range for 2026.
MCD Stock Price Activity: McDonald's shares are trading higher by 2.07% at $268.48 during premarket trading on Wednesday, according to market data.