McDonald’s (MCD) sales growth slowed in the third quarter as consumers faced a challenging economic backdrop and the fast-food chain unveiled its growth strategy. The results showed that same-store sales grew 1.5% year over year, slightly above the 1.4% growth that Wall Street was expecting, according to Bloomberg estimates. In the third quarter of last year, McDonald’s posted comparable sales growth of 3.6%. 263.04 -2.60 (-0.98%) Close: Nov 3 4:00:02 PM EST 268.96 +5.87 (+2.23%) Premarket: 8:28:03 AM EST In the US, the company reported a 0.2% decline in comparable sales, slightly smaller than the expected 0.5% decline. Data from Placer.ai showed that visits to the Golden Arches were down from a year earlier, but the company said customers spent more when they went. Promotions in October built some strength ahead of the holiday season. CEO Chris Kempczinski said the company is “encouraged by the improvement as the quarter progresses following our stock intervention.” Revenue came in at nearly $7.2 billion, below expectations of $7.4 billion, along with adjusted earnings of $3.57 per share, above the expected $3.40 per share. Ahead of the results, BTIG analyst Peter Saleh said “the challenges of lower revenue, disappointing promotions and overly packed marketing calendars” were the top concerns among franchised operators in the quarter. “The drinks were mentioned as a rare bright spot,” he added, alluding to an energy drink McDonald’s launched with Red Bull in September. The company is also leaning into holiday deals starting November 3. McDonald’s introduced a limited-time line consisting of a cookie butter coffee or latte, a blueberry-infused Sprite drink, and a blueberry-flavored Red Bull energy drink. Citi’s Jon Tower shared a similar message in a note, writing: “We still have confidence in beverages as a broader platform, [and] Another attempt at entry-level value should arrive in the early 27”. Pedestrians walk past a large illuminated JCDecaux street ad displaying a promotion for McDonald’s McCafe coffee on September 11, 2026, in Dublin, Ireland. (Artur Widak/NurPhoto via Getty Images) · NurPhoto via Getty Images The company named Skye Anderson, a 26-year McDonald’s veteran, as president of McDonald’s USA last quarter. Anderson is working on a new value Anderson will play a key role in a new growth strategy as McDonald’s makes a long-term bet on artificial intelligence, hand-breaded chicken and the return of ’90s-style restaurant design to win back customers who left for other chains, such as Burger King (QSR). million of that investment by 2030. According to Saleh, franchisees’ reactions to the NEXT growth strategy are mixed. [are] “We are very skeptical that any level of margin gains are possible, we are not convinced that an extensive refurbishment program is needed, and we note that very few details on costs and co-investment have been shared,” Saleh wrote. “Without a significant reduction in construction cost and further field testing, we do not believe Project NEXT can proceed.” McDonald’s operators are expected to update the appearance of restaurants as part of a 10-year remodeling cycle, according to McDonald’s, and Kempczinski said those costs typically add up to $400,000 to $450,000 per restaurant Implementing McDonald’s suite of productivity improvements will cost franchise operators an additional $800,000 per U.S. restaurant. For international markets, it will cost operators between 650,000 and 750,000 dollars. Follow Brooke DiPalma on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
