McDonald Q3 Earnings Miss, Revenues Beat Estimates, Stock Up

McDonald's Corporation MCD reported mixed third-quarter 2025 results, wherein earnings missed the Zacks Consensus Estimate and revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.

Following the results, the company’s shares are up 1% in today’s pre-market trading session. The company’s results in the quarter were aided by an increase in comparable guest counts.

McDonald’s performance was supported by steady momentum across all segments, driven by strong value offerings, menu innovation and effective marketing that attracted customers. The company continued to focus on delivering affordability and everyday value, reinforcing brand strength and customer loyalty in a challenging environment.

MCD’s Earnings & Revenue Discussion

In third-quarter 2025, McDonald's reported adjusted earnings per share (EPS) of $3.18, which missed the Zacks Consensus Estimate of $3.35. Adjusted earnings declined 1.5% year over year.

Quarterly net revenues of $7,078 million beat the consensus mark of $7,067 million. Additionally, the top line rose 3% year over year.

McDonald's Corporation Price, Consensus and EPS Surprise

McDonald's Corporation price-consensus-eps-surprise-chart | McDonald's Corporation Quote

At company-operated restaurants, sales were $2.56 billion, down 3% year over year. Sales at franchise-operated restaurants amounted to $4.36 billion, which increased 7% year over year. Moreover, Other revenues rose 22% year over year to $151 million. Our model predicted sales by company-operated restaurants to decline 0.8%, while franchise-operated restaurants to increase 3.8% from the prior-year levels.

McDonald's Comps Details

In the quarter under discussion, global comps rose 3.6% against a 1.5% decline in the prior-year quarter. Our estimate was a 3.5% increase year over year.

Comps Across MCD’s Segments

The United States: In the third quarter, segmental comps rose 2.4% compared with 0.3% growth registered in the prior-year quarter. The company's comparable sales for the quarter were aided by positive check growth. Our model estimated the U.S. comps to increase 2.8%.

International Operated Markets: Segmental comps jumped 4.3% against a decline of 2.1% in the year-ago quarter. The rise was driven by positive comparable sales across all markets. We anticipated an increase of 3.9% from the year-ago levels.

International Developmental Licensed Segment: Segmental comparable sales registered a 4.7% increase in contrast to the 3.5% decline in the prior-year quarter. Japan led the growth in positive comparable sales, with all global regions also reporting increases.

Operating Highlights & Expenses of McDonald's

In the third quarter, McDonald’s total operating costs and expenses were $3.72 billion, up 1% year over year.

Operating income rose 5% year over year to $3.36 billion. Net income totaled $2.28 billion, up 1% year over year.

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 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 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 its Pizza Hut brand aimed at maximizing long-term value for the company, its 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 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 from the prior-year quarter’s figure.

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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