McDonald's US sales rise — but profits fall short as it warns Americans are dining out less

Core Insights - McDonald's reported a 2.4% increase in US same-store sales for the third quarter, surpassing estimates of 1.9%, attributed to a larger average check despite the ongoing "value wars" in the fast-food industry [1][3] - The company experienced a net income of $2.28 billion, or $3.18 per share, which is an increase from $2.26 billion year-over-year, although earnings per share fell short of estimates at $3.22 [4][5] - Revenue rose 3% to $7.08 billion, slightly missing estimates of $7.1 billion, with expectations of continued economic concerns affecting customer spending into 2026 [7] Sales Performance - Same-store sales globally increased by 3.6%, reversing a decline of 1.5% from the previous year, with international markets showing strong growth [1][10] - In international operated markets, same-store sales rose 4.3%, while the international developmental licensed markets segment saw a 4.7% increase, driven by growth in Japan [10] Consumer Trends - The company noted a bifurcated consumer base, with traffic from lower-income consumers declining nearly double digits, while higher-income consumer traffic grew nearly double digits [4][10] - McDonald's is focusing on value meals to attract cash-strapped consumers, reintroducing items like Snack Wraps at a low price of $2.99, which became popular quickly [8][11] Future Outlook - The company is optimistic about future sales growth due to the return of Extra Value Meals and promotional deals, although it may face easier comparisons due to last year's E. coli outbreak impacting sales [11]