McDonald’s reported its third‑quarter 2025 results on November 5, 2025, with systemwide revenue of $7.078 billion—slightly below the consensus estimate of $7.10 billion. The company’s adjusted earnings per share were $3.18, falling short of the $3.33 consensus. Operating income, however, increased 5% year‑over‑year to $3.36 billion, a rise driven by higher operating margins and effective cost control, offsetting a $39 million restructuring charge that was excluded from the margin calculation.
Comparable sales grew 3.6% globally, with U.S. same‑store sales up 2.4% and International Operated Markets up 4.3%. International Developmental Licensed Markets added 4.7% in comparable sales. The mix shift toward higher‑margin international units helped lift operating income, while the modest revenue shortfall reflects ongoing softness in lower‑income consumer spending and the impact of inflationary pressures on food costs.
Management reaffirmed its full‑year 2025 guidance, maintaining an operating‑margin target in the mid‑to‑high 40 % range, capital expenditures of $3.0‑$3.2 billion, and a net restaurant‑unit expansion of roughly 1,800 new restaurants. CEO Chris Kempczinski said the company “increased global Systemwide sales by 6% and grew comp sales across all segments, a testament to our ability to deliver sustainable growth even in a challenging environment.” He added that “QSR traffic from lower‑income consumers declined nearly double digits in the third quarter, a trend that has persisted for nearly two years,” underscoring the headwinds that contributed to the EPS miss.
The earnings miss is largely attributable to the $39 million restructuring charge and higher food‑cost inflation, which eroded profitability despite the 5% rise in operating income. The company’s focus on value‑menu offerings, digital initiatives, and delivery expansion remains a key driver of comparable sales growth, and management expects these initiatives to support a rebound in the fourth quarter. The guidance signals confidence that the company can sustain profitability while navigating consumer‑spending headwinds.
The results illustrate McDonald’s resilience: revenue growth and operating income expansion demonstrate that the company’s core business remains strong, while the EPS miss highlights the need for continued cost discipline and the impact of macro‑economic pressures on lower‑income consumers. The reaffirmed guidance reflects management’s belief that the company can maintain its margin profile and continue to add restaurants, positioning it for long‑term growth despite short‑term challenges.
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