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McDonald’s earnings beat, but traffic to chain’s U.S. restaurants falls
McDonald’s reported quarterly results that beat analysts’ expectations overall, even as customer traffic fell at its US restaurants and domestic same-store sales slipped. The company said US sales improved as the quarter progressed after it renewed its focus on value offers, a key effort to win back budget-conscious diners.
US same-store sales fell 0.2%, a smaller decline than the 0.5% analysts had forecast, while global same-store sales rose 1.5%, ahead of expectations. Net income increased to $2.49 billion, or $3.51 per share, from $2.28 billion a year earlier; adjusted earnings were $3.57 per share. International results varied, with growth of 4.2% in licensed markets including Japan and China, while France was a weak spot. McDonald’s is testing two value menus and plans to roll out the option customers and franchisees prefer in early 2027.
In short
- Global sales growth beat expectations despite weaker US traffic.
- US same-store sales fell 0.2%, less than forecast.
- McDonald’s plans a nationwide value menu rollout in early 2027.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The results suggest McDonald’s is showing resilience: earnings and global same-store sales exceeded expectations, and the smaller-than-forecast US sales decline may indicate that renewed value offers are helping attract budget-conscious customers. Testing menus with customers and franchisees could help the company find an approach that supports demand while remaining workable for its operators.
The case against
Falling US traffic and lower domestic same-store sales point to continuing difficulty persuading customers to visit, despite the value push. Strong overall earnings and international growth may obscure that weakness, while testing value menus and delaying a preferred option until 2027 leave uncertainty about whether the company can regain US customers without putting pressure on franchisees.
Explained simply
McDonald’s is a global fast-food chain whose restaurants are mostly run by franchisees, who pay to use its brand and operating system. Its sales can vary by country, and the company tracks “same-store sales” to compare restaurants open for at least a year, giving a clearer picture of changes at established locations.
In the US, McDonald’s competes for customers who may be cutting back on eating out or choosing cheaper options. Value offers are a way to attract those diners, but they also affect how much customers spend and the returns franchisees make. The company’s results therefore reflect both customer demand and the performance of its restaurants in different markets.
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