McDonald's Corp. (MCD) stock jumped nearly 6% Wednesday after the fast-food giant reported better-than-expected third-quarter earnings, supported by strong international performance.

Management outlined plans to revive its struggling U.S. business through value meals and promotions. Improving customer traffic in September and October signaled a potential recovery in the U.S. business.

Adjusted earnings rose 11% year over year on a constant-currency basis to $3.57 per share, beating Wall Street's estimate of $3.38.

Revenue increased 1% to $7.157 billion on both a reported and constant-currency basis, missing analysts' estimate of $7.285 billion.

Global comparable sales rose 1.5%, while systemwide sales increased 4% in constant currency, supported by new restaurant openings.

McDonald's U.S. Sales Show Signs of Recovery

U.S. comparable sales fell 0.2% year over year, with declines in July and August followed by a return to growth in September.

However, CEO Chris Kempczinski highlighted improving U.S. business trends, with comparable sales turning positive in September and October.

McDonald's plans to test new value menu options at 1,900 U.S. restaurants ahead of a nationwide rollout in early 2027.

Franchisees operating another 4,000 restaurants have introduced similar meal deals, bringing participation to more than 40% of U.S. locations.

Specialty Beverages Fuel Growth

CFO Ian Borden said orders featuring specialty beverages generate average checks about 50% higher than the daily average.

The specialty beverage platform operates across nearly 18,000 restaurants in the U.S., Germany, Canada and Australia.

McDonald's plans to expand its specialty beverage platform to more than 7,000 additional European restaurants by mid-2027. It also aims to gain another 1.5 percentage points of beverage market share by 2030.

International Sales Remain Strong

Comparable sales rose 1.4% in International Operated Markets and 4.2% in International Developmental Licensed Markets.

Australia and Germany led growth in International Operated Markets, while Japan drove performance in International Developmental Licensed Markets.

Despite weak consumer spending in Europe, McDonald's maintained or gained market share across most of its major markets.

Management expects protests in France and disruptions in Ukraine to weigh on fourth-quarter results.

McDonald's Warns of Higher Costs in 2027

Kempczinski warned that McDonald's expects food and paper costs to rise by mid-single digits in 2027, above historical levels.

He said the company must carefully balance price increases with affordability as it works to attract budget-conscious customers.

"We've learned the lesson over the last 18 months that you need to proceed very cautiously with that," Kempczinski said during the earnings call, referring to pricing decisions.

AI and Restaurant Expansion Plans

McDonald's Next strategy focuses on improving customer experience, menu offerings and restaurant efficiency.

The company plans to remodel hundreds of U.S. restaurants in 2027, with annual renovations exceeding 5,000 restaurants globally starting in 2028.

McDonald's expects to deploy Archy, its smart ordering system, across a majority of U.S. restaurants by the end of 2027.

McDonald's aims to franchise 98% of its global restaurants by 2028.

Management reaffirmed plans to open approximately 2,100 net new restaurants globally in 2026.

McDonald's lowered its 2026 capital spending forecast to approximately $3.7 billion, the low end of its previous guidance range of $3.7 billion to $3.9 billion.

MCD Price Action: McDonald's shares were up 6.04% at $278.92 at the time of publication on Wednesday, according to market data.