McDonald's tops Q3 profit estimates, misses on revenue

McDonald's (MCD) said Nov. 4 that third-quarter adjusted earnings per share were $3.57, above the $3.42 consensus estimate, while revenue of $7.16 billion missed the $7.36 billion estimate.

Shares rose 2.2% in premarket trading as of 8:05 a.m. ET, from a regular-session close of $263.04.

The results cover the quarter ended Sept. 30, 2026. Global comparable sales rose 1.5%.

Here's how the company did:

• Adjusted EPS: $3.57 vs. $3.42 expected
• Diluted EPS, GAAP: $3.51 vs. $3.18 a year earlier
• Revenue: $7.16 billion vs. $7.36 billion expected, and $7.08 billion a year earlier

Systemwide sales rose 4% to over $38 billion for the quarter. The company said loyalty members across 70 loyalty markets generated more than $11 billion in sales in the quarter.

Quarter detail

Consolidated operating income rose 7% to $3.60 billion. Excluding pre-tax charges of $56 million, operating income rose 8%.

The charges were primarily restructuring costs tied to Accelerating the Organization, an internal effort to modernize ways of working. Excluding those charges, adjusted EPS was affected by a charge of 6 cents per share.

In the U.S., comparable sales declined 0.2%, as fewer guests were largely offset by higher check. International Operated Markets rose 1.4%, led by Germany and Australia, partly offset by France. International Developmental Licensed Markets rose 4.2%, led by Japan.

"McDonald's delivered another quarter of global growth, with solid performance across much of our international business." Chairman and CEO Chris Kempczinski said. "In the U.S., we're encouraged by improvement as the quarter progressed following our intervention on value."

Dividend and outlook

The company declared a 4% increase in its quarterly cash dividend to $1.93 per share, from $1.86, payable on Dec. 15.

For 2026, the company expects operating margin in the mid-to-high 40% range and SG&A of about 2.2% of systemwide sales. It expects capital expenditures of about $3.7 billion and about 2,500 restaurant openings.

The company expects its free cash flow conversion rate to be in the low-to-mid 80% range. It expects interest expense to increase between 4% and 6%, and its effective tax rate to be between 21% and 23%.

Restructuring charges under Accelerating the Organization are expected to continue through their anticipated completion in 2027, according to the company's supplemental information.