McDonald's (MCD) Up 3.4% Since Last Earnings Report: Can It Continue?

Core Viewpoint - McDonald's reported mixed Q3 2025 results, with earnings missing estimates while revenues exceeded expectations, indicating a complex performance landscape for the company [2][4]. Financial Performance - Adjusted earnings per share (EPS) for Q3 2025 were $3.22, missing the Zacks Consensus Estimate of $3.35, reflecting a 1.5% year-over-year decline [4]. - Quarterly net revenues reached $7,078 million, surpassing the consensus mark of $7,067 million, and increased by 3% year over year [4]. Sales Performance - Sales at company-operated restaurants were $2.56 billion, down 3% year over year, while sales at franchise-operated restaurants increased by 7% to $4.36 billion [5]. - Other revenues rose significantly by 22% year over year to $151 million [5]. Comparable Sales - Global comparable sales rose by 3.6% compared to a 1.5% decline in the prior-year quarter, slightly above the estimated increase of 3.5% [6]. - In the U.S., segmental comparable sales increased by 2.4%, compared to 0.3% growth in the prior-year quarter [7]. - Internationally, segmental comps jumped 4.3%, contrasting with a decline of 2.1% in the year-ago quarter, driven by positive sales across all markets [8]. Operating Highlights - Total operating costs and expenses for Q3 were $3.72 billion, up 1% year over year [9]. - Operating income rose by 5% year over year to $3.36 billion, while net income totaled $2.28 billion, reflecting a 1% increase [10]. Market Outlook - Estimates for McDonald's have been trending downward, indicating a potential shift in market sentiment, with a Zacks Rank of 3 (Hold) suggesting an expectation of in-line returns in the coming months [11][13].