CNBC Television
McDonald’s earnings miss estimates, but sales are rising in ‘challenging environment’
11/5/2025, 12:29:51 PM
Economic Summary
- McDonald's (MCD) reported mixed Q3 results: adjusted EPS of $3.22 missed estimates of $3.33, and revenue $7.08B slightly trailed the $7.1B estimate, implying margin or cost pressures despite solid sales.
- Same-store sales were a bright spot: global comps +3.6% and U.S. comps +2.4% (vs. 1.9% est), indicating resilient consumer spending at value-focused fast food.
- International operated markets grew ~4.3%, led by Germany and Australia, while international developmental license sales underperformed, highlighting regional variance in demand.
- A noted pullback among younger consumers is weighing on brands like CAVA and Chipotle (CMG), suggesting demographic shifts and potential trading-down toward value options like McDonald's.
Bullish
- U.S. same-store sales beat estimates, +2.4% vs. 1.9% for MCD.
- Global comps were positive, driven by check growth and international strength.
- McDonald's value strategy appears to attract price-sensitive and low-income consumers.
Bearish
- Adjusted EPS missed estimates, suggesting profit pressure despite sales.
- Revenues slightly below analyst estimates, indicating weaker top-line momentum.
- International developmental license sales missed expectations, a sign of abroad softness.
- Pullback in younger consumers hurting Cava and Chipotle traffic and sales.
Bullish tickers
MCD
Bearish tickers
MCDCAVACMG
MCD
Bullish
U.S. and global same-store sales beat estimates, driven by check growth and value-focused initiatives that may capture price-sensitive consumers.
Bearish
Adjusted EPS missed estimates and revenue slightly trailed expectations; international license sales underperformed and traffic trends were unclear, prompting investor caution.
CAVA
Bearish
Management commentary and sector trends point to a pullback in younger consumers, which has negatively impacted Cava's traffic and growth.
CMG
Bearish
Chipotle is being hit by a pullback in younger consumers, suggesting potential softness in its core demographic.
People mentioned
KateChris Kempczynski