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McDonald's stock rises as US sales top forecasts, company continues value push amid 'challenging environment'
Yahoo Financeยท 2025-11-05 16:44
Core Insights - McDonald's reported US same-store sales growth of 2.5%, exceeding Wall Street's expectation of 2.2% and matching the previous quarter's growth rate [1][2] - Global same-store sales increased by 3.6%, consistent with estimates, following a 3.8% rise in the previous quarter [2] - Adjusted earnings per share were $3.22, below the expected $3.32, with revenue at $7.1 billion, aligning with estimates [2] Sales Performance - Systemwide sales, including both company-operated and franchised locations, grew by 6% [3] - The return of the Snack Wrap and a deal with US franchisees to lower combo meal costs were key strategies to enhance value offerings [3] - The digital return of the Monopoly game significantly boosted app downloads and digital sales growth [3] Consumer Insights - The CEO noted a "bifurcated consumer base," with traffic among lower-income consumers declining nearly double digits, while higher-income consumers showed nearly double-digit growth [4] - The CFO projected an acceleration in US same-store sales growth for the fourth quarter, influenced by last year's E. coli outbreak [5] - The CEO expressed concerns about ongoing pressures on lower-income consumers due to high rents and food prices [5]