McDonald's push to make meals affordable is working as sales growth tops expectations, again

By James Rogers

McDonald's stock rallies, as comparable sales get a boost with the introduction of the Extra Value Meals program

McDonald's reported third-quarter results before market open Wednesday.

McDonald's Corp. topped Wall Street's sales expectations in its third-quarter results Wednesday, as the fast-food giant's recent push to attract a more price-conscious customer may have helped it break out from a sales rut.

Speaking during a conference call to discuss the results, McDonald's Chief Executive Chris Kempczinski said he is pleased with how the Extra Value Meals program is performing since its September relaunch. He also pointed to McDonald's (MCD) recent launch of a $5 sausage, egg, and cheese McGriddles meal and an $8 10-piece chicken McNuggets meal.

"We're still in the early stages of the program and expect that the associated [comparable] sales lift and traffic improvements will continue to build as awareness of the program increases over the coming quarters," he added, according to a FactSet transcript. McDonald's will measure the success of its EVM program by gaining share of lower income consumer traffic, the CEO said.

The company's global comparable sales, or sales of stores open at least 13 months, rose 3.6% from a year ago, topping the FactSet consensus estimate of 3.5%.

That marked the second straight quarter that McDonald's comparable sales have beaten estimates, something the company hasn't been able to do in two years. The company had missed expectations in five of the previous six quarters.

In the U.S., comparable sales rose 2.4%, beating the 1.9% analyst estimate.

McDonald's stock rose 2.2% in recent morning trading. It has gained 5.5% in 2025, compared with the S&P 500 index's SPX gain of 15.6%.

The strong sales indicate that, similar to last quarter, McDonald's customers are spending more per visit. McDonald's has also been pushing meal deals in recent months in an attempt to lure customers, particularly lower-income customers, to its restaurants and to keep them coming back.

The lower-income cohort, which continues to be pressured by higher prices and slower economic growth, is a key area for McDonald's.

Kempczinski said traffic to quick service, or fast-food, restaurants from lower-income consumers declined by nearly a double-digit percentage in the third quarter, a trend that has persisted for nearly two years. In contrast, traffic growth among higher-income consumers remains strong, increasing nearly double digits in the quarter.

Burger King parent and McDonald's rival Restaurant Brands Inc. (QSR) has also noted ongoing spending pressure among the lower-income cohort. Last week, when the company reported its third-quarter results, CEO Josh Kobza pointed to slightly softer relative performance of lower and middle-income consumers over the past couple of quarters.

As for McDonald's, Kempczinski said that the company believes the pressures on lower-income customers will to continue well into 2026.

For the third quarter, McDonald's reported profit of $2.28 billion, or $3.18 a share, up from $2.26 billion, or $3.13 a share, in the same period last year.

But the company's adjusted earnings, which excludes nonrecurring items, came in below expectations. Adjusted earnings per share slipped to $3.22 from $3.23 last year, and were below the FactSet consensus estimate of $3.33.

Revenue was $7.08 billion, up 3% from a year ago and in line with expectations.

-James Rogers

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11-05-25 1046ET