McDonald’s (MCD) Q3 2025 earnings summary

Executive summary

• Global comparable sales grew 3.6% year-over-year, with all segments contributing; U.S. comp sales rose 2.4%, International Operated Markets 4.3%, and International Developmental Licensed Markets 4.7%, led by Germany, Australia, and Japan.

• Systemwide sales increased 8% for the quarter (6% in constant currency), exceeding $36 billion, driven by new unit openings, loyalty program engagement, and digital initiatives.

• Consolidated revenues rose 3% for the quarter to $7.08 billion, with strong international performance and positive check growth in the U.S.

• Systemwide sales to loyalty members reached $9 billion for the quarter and $34 billion for the trailing twelve months across 60 markets.

• All segments showed positive growth despite a challenging consumer environment.

Financial highlights

• Adjusted EPS was $3.22 for the quarter (flat year-over-year), including a $0.04 FX benefit; diluted EPS was $3.18 (up 2%), and net income was $2.28 billion (up 1%).

• Operating income grew 5% to $3.36 billion for the quarter; operating margin was approximately 47%.

• Total restaurant margin dollars exceeded $4 billion for the first time, up 4% in constant currency.

• Year-to-date adjusted operating margin reached 47.2%, up from 46.7% in the prior year.

• Effective income tax rate for the quarter was 22.8%; full-year guidance narrowed to 21–22%.

Outlook and guidance

• Q4 U.S. comp sales growth expected to accelerate, aided by the Monopoly campaign and EVM relaunch; international segment Q4 comp sales may decelerate due to tougher comparisons, but two-year stack growth is expected to accelerate.

• Net restaurant unit expansion expected to contribute over 2% to 2025 Systemwide sales growth, with 2,200 new restaurants planned globally and capital expenditures forecasted at $3.0–$3.2 billion.

• 2025 operating margin projected in the mid-to-high 40% range; effective tax rate expected between 21% and 22%.

• Inflation, especially in beef, is expected to remain above average into 2026, keeping pressure on margins and consumer spending.

• On track to meet full-year financial targets, including impacts from tariffs.