McDonald's earnings miss estimates, but sales are rising in ‘challenging environment'

Core Insights - McDonald's reported mixed third quarter results, with adjusted EPS of $3.22, missing estimates of $3.33, while same-store sales in the US exceeded expectations [1][2] Financial Performance - Revenues for the quarter were $7.08 billion, slightly below the estimated $7.1 billion [2] - Global same-store sales increased by 3.6%, outperforming the estimated 3.5% [2] - US same-store sales rose by 2.4%, exceeding the estimate of 1.9%, driven by positive check growth [2][4] - International operated markets saw a 4.3% increase in same-store sales, above the estimated 4.1% [3] - International developmental license markets reported a 4.7% increase, below the estimated 5.4% [4] Market Commentary - McDonald's CEO emphasized the results as a testament to the company's ability to achieve sustainable growth in a challenging environment, focusing on value, affordability, menu innovation, and marketing [4] - There is a notable trend of younger consumers potentially trading down to McDonald's, indicating a shift in consumer behavior towards value offerings [6][7]