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MCD Q3 Earnings Down Y/Y, Traffic and Loyalty Growth Remain Solid
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Key Takeaways
McDonald's Q3 adjusted EPS fell year over year, mainly due to a higher effective tax rate.
Global comparable sales rose 3.6%, driven by gains across all major operating markets.
U.S. loyalty users reached 45 million, boosted by the MONOPOLY promo and digital value offers.
McDonald's Corporation (MCD - Free Report) reported third-quarter 2025 results that reflected ongoing macroeconomic pressures, with adjusted earnings per share declining year over year. Management attributed the earnings dip largely to a higher effective tax rate, even as operating income improved. Still, the quarter underscored the resilience of McDonald’s global business model, supported by consistent traffic growth, expanding loyalty participation and improved customer engagement.
Global comparable sales increased 3.6% in the period, driven by growth across all operating segments. Executives highlighted that McDonald's continues to take share in many of its largest markets by leaning into value positioning, digital ecosystem and menu relevance. In the United States, comparable sales rose 2.4%, with the brand noting positive guest count gaps compared with competitors, even in a challenging quick-service environment.
A key driver of customer retention this quarter was the continued integration of digital loyalty engagement. The United States now boasts approximately 45 million 90-day active users, supported by promotions like the reintroduced MONOPOLY program designed to drive app registrations and increase return visits.
On the value side, McDonald’s relaunched Extra Value Meals at sharper price points, aiming to strengthen perceived affordability across core menu offerings. Management noted early traction, particularly among lower-income diners who have faced ongoing economic pressures. However, the company emphasized that the benefits of this revamped value initiative will build progressively over the coming quarters as awareness increases.
Outside the United States, McDonald’s internationally operated markets continued to deliver strong performance. Germany saw its strongest comp sales results in two years and Australia gained market share for a second straight quarter, supported by well-executed value platforms and digital activations.
Meanwhile, McDonald’s ongoing menu innovation in chicken and beverages also remained a focal point. The company noted strong early results in the U.S. beverage test involving cold coffee and refresher beverages, which drove incremental visits and higher average checks without overwhelming kitchen operations.
McDonald's Corporation Price, Consensus and EPS Surprise
Management maintained a cautious outlook for the consumer environment, particularly in the United States and key international markets. The company expects inflation to remain elevated into 2026, which will continue to pressure value-sensitive customer groups.
However, McDonald’s expects comp sales growth to accelerate in fourth-quarter 2025, supported by digital promotions, the relaunch of EVMs and marketing activations. The company also reaffirmed its development pipeline targets, including reaching 50,000 restaurants globally by 2027. (Read more: McDonald Q3 Earnings Miss, Revenues Beat Estimates, Stock Up)
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported third-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both top and bottom lines increased year over year.
Management flagged a notable shift from lower to middle-income diners, who account for approximately 40% of sales, citing inflation, weak wage growth and student loan repayments. Guidance for low to mid-single-digit comp declines in fourth-quarter 2025 and margin pressure in 2026, caused by rising beef costs and tariffs that will not be fully offset by pricing, fueled concerns about slowing growth despite menu innovation and expansion plans.
YUM! Brands, Inc. (YUM - Free Report) reported third-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
YUM announced the launch of a strategic review for the Pizza Hut brand aimed at maximizing long-term value for it, franchisees and partners. Also, it stated plans to complete the acquisition of 128 Taco Bell restaurants across the Southeast United States in the fourth quarter of 2025.
Starbucks Corporation (SBUX - Free Report) reported mixed fourth-quarter fiscal 2025 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The top line increased year over year, but the bottom line declined.
In the fiscal fourth quarter, the company reported progress of its “Back to Starbucks” turnaround strategy, citing a return to global comparable sales growth and improving momentum. Looking ahead, Starbucks remains focused on driving revenue growth, exercising cost discipline and achieving sustainable profitability over the long term.
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MCD Q3 Earnings Down Y/Y, Traffic and Loyalty Growth Remain Solid
Key Takeaways
McDonald's Corporation (MCD - Free Report) reported third-quarter 2025 results that reflected ongoing macroeconomic pressures, with adjusted earnings per share declining year over year. Management attributed the earnings dip largely to a higher effective tax rate, even as operating income improved. Still, the quarter underscored the resilience of McDonald’s global business model, supported by consistent traffic growth, expanding loyalty participation and improved customer engagement.
Global comparable sales increased 3.6% in the period, driven by growth across all operating segments. Executives highlighted that McDonald's continues to take share in many of its largest markets by leaning into value positioning, digital ecosystem and menu relevance. In the United States, comparable sales rose 2.4%, with the brand noting positive guest count gaps compared with competitors, even in a challenging quick-service environment.
A key driver of customer retention this quarter was the continued integration of digital loyalty engagement. The United States now boasts approximately 45 million 90-day active users, supported by promotions like the reintroduced MONOPOLY program designed to drive app registrations and increase return visits.
On the value side, McDonald’s relaunched Extra Value Meals at sharper price points, aiming to strengthen perceived affordability across core menu offerings. Management noted early traction, particularly among lower-income diners who have faced ongoing economic pressures. However, the company emphasized that the benefits of this revamped value initiative will build progressively over the coming quarters as awareness increases.
Outside the United States, McDonald’s internationally operated markets continued to deliver strong performance. Germany saw its strongest comp sales results in two years and Australia gained market share for a second straight quarter, supported by well-executed value platforms and digital activations.
Meanwhile, McDonald’s ongoing menu innovation in chicken and beverages also remained a focal point. The company noted strong early results in the U.S. beverage test involving cold coffee and refresher beverages, which drove incremental visits and higher average checks without overwhelming kitchen operations.
McDonald's Corporation Price, Consensus and EPS Surprise
McDonald's Corporation price-consensus-eps-surprise-chart | McDonald's Corporation Quote
MCD’s Guidance
Management maintained a cautious outlook for the consumer environment, particularly in the United States and key international markets. The company expects inflation to remain elevated into 2026, which will continue to pressure value-sensitive customer groups.
However, McDonald’s expects comp sales growth to accelerate in fourth-quarter 2025, supported by digital promotions, the relaunch of EVMs and marketing activations. The company also reaffirmed its development pipeline targets, including reaching 50,000 restaurants globally by 2027. (Read more: McDonald Q3 Earnings Miss, Revenues Beat Estimates, Stock Up)
MCD’s Zacks Rank
MCD currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Retail-Wholesale Releases
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported third-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both top and bottom lines increased year over year.
Management flagged a notable shift from lower to middle-income diners, who account for approximately 40% of sales, citing inflation, weak wage growth and student loan repayments. Guidance for low to mid-single-digit comp declines in fourth-quarter 2025 and margin pressure in 2026, caused by rising beef costs and tariffs that will not be fully offset by pricing, fueled concerns about slowing growth despite menu innovation and expansion plans.
YUM! Brands, Inc. (YUM - Free Report) reported third-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
YUM announced the launch of a strategic review for the Pizza Hut brand aimed at maximizing long-term value for it, franchisees and partners. Also, it stated plans to complete the acquisition of 128 Taco Bell restaurants across the Southeast United States in the fourth quarter of 2025.
Starbucks Corporation (SBUX - Free Report) reported mixed fourth-quarter fiscal 2025 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The top line increased year over year, but the bottom line declined.
In the fiscal fourth quarter, the company reported progress of its “Back to Starbucks” turnaround strategy, citing a return to global comparable sales growth and improving momentum. Looking ahead, Starbucks remains focused on driving revenue growth, exercising cost discipline and achieving sustainable profitability over the long term.