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McDonald’s Shares Rise as Value Deals Lift Q3 Sales Above Forecasts
Financial Modeling Prep· 2025-11-05 21:10
Core Insights - McDonald's Corp. reported stronger-than-expected global sales growth in Q3, driven by cost-conscious consumers seeking value offerings amid economic uncertainty [1] - Global comparable sales increased by 3.6%, slightly above the Street estimate of 3.59% [1] - U.S. same-store sales rose by 2.4%, a significant improvement from 0.3% a year ago, surpassing expectations of 2.14% [1] Sales and Promotions - Fast-food chains, including McDonald's, have focused on low-priced meal deals to address weaker demand for dining out [2] - McDonald's introduced promotions such as a $5 menu and a "buy one, add one for $1" offer to attract lower-income consumers, who form a significant part of its customer base [2] Financial Performance - Operating income grew by 5.3% year over year to $3.36 billion, despite a $39 million pre-tax restructuring charge impacting results [3] - Earnings per share were reported at $3.18, while revenue increased by 3% to $7.08 billion, indicating steady demand and operational efficiency gains across major markets [3]