McDonald's Beats on EPS at $3.57 as U.S. Comps Slip Just 0.2%, but Q3 Revenue Misses at $7.16B

McDonald's (MCD) reported third-quarter 2026 revenue of $7.16 billion, up 1% from a year earlier but below the $7.28 billion estimate, while adjusted earnings per share rose 11% to $3.57, ahead of the $3.38 estimate. Global comparable sales grew 1.5%, matching estimates, as U.S. comparable sales fell 0.2%, better than the expected 0.5% decline.

Q3 scorecard

By our calculation, revenue missed by about 1.6% while adjusted EPS beat by about 5.6%, a gap that reflects profit growth from higher franchised margins and other operating income rather than sales.

Where sales are coming from

• United States. Comparable sales fell 0.2% but beat the expected decline, and management cited improving performance later in the quarter after its value-focused initiatives. U.S. systemwide sales rose 1%.
• International Operated Markets. Comparable sales rose 1.4%, missing the 2% estimate, while systemwide sales rose 3%.
• Developmental Licensed markets. Comparable sales rose 4.2%, beating the 3.3% estimate, and systemwide sales rose 9%.
• Loyalty. Loyalty-member sales topped $11 billion in the quarter and reached $41 billion over the trailing 12 months across 70 markets.

The U.S. slowdown shows up against the longer view: U.S. comparable sales were up 1.4% for the first nine months of 2026, and global comparable sales were up 2.1%.

Profit, restructuring and capital return

• Earnings. GAAP diluted EPS rose 10% to $3.51; adjusted EPS of $3.57 excludes $56 million of pretax restructuring charges, or $0.06 per share.
• Operating income. GAAP operating income rose 7% to $3.60 billion and non-GAAP operating income rose 8% to $3.65 billion, driven by higher other operating income and higher sales-driven franchised margins.
• Restructuring. The charges relate mainly to the "Accelerating the Organization" initiative, and McDonald's expects them to continue through completion in 2027.
• Dividend and buybacks. The board raised the quarterly dividend 4% to $1.93 per share in September, payable Dec. 15, and the company repurchased 1.9 million shares for $519 million in the quarter.

By our calculation, McDonald's returned about $1.8 billion to shareholders in the quarter, combining roughly $1.3 billion in dividends paid and $519 million of repurchases.

What to watch

• U.S. momentum. Whether the late-quarter improvement carries into positive comparable sales in the fourth quarter.
• International operated markets. Whether the miss in the larger international markets reverses.
• Value strategy. How much value pricing pressures margins as it supports traffic.
• Restructuring costs. Further charges through 2027 as the reorganization continues.
• Related coverage. See our earnings reports on Starbucks and Marriott and our week-ahead preview.

Sources: Results are from McDonald's third-quarter 2026 financial statements and supplemental information. Estimates are consensus figures and loyalty figures are as reported by the company. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.