McDonald's Q3 2026: Profit Beat, Revenue Miss, and a U.S. Traffic Problem

McDonald's posted adjusted diluted EPS of $3.57 for the third quarter of 2026, beating the consensus estimate of $3.38. That profit outperformance was driven in part by a sharp swing in other operating income, which rose to $139 million from $37 million a year earlier, alongside disciplined cost management. On a GAAP basis, diluted EPS came in at $3.51 after the company absorbed $56 million in pre-tax restructuring charges tied to its Accelerating the Organization initiative.

Revenue of $7.16 billion grew 1.1% year over year, missing expectations of $7.29 billion. The shortfall traced directly to a 3% decline in company-operated restaurant sales, which came in at $2.48 billion, while franchised restaurant revenue grew 3% to $4.49 billion. U.S. comparable sales edged down 0.2%, with negative guest counts only partially offset by a higher average check.

The U.S. traffic picture is the central concern heading into the next quarter. Management acknowledged the weakness but noted that value-focused interventions helped improve trends as the quarter progressed. CEO Chris Kempczinski said the company is encouraged by that improvement and described the U.S. situation as one the company is actively working to build from. Outside the U.S., global comparable sales rose 1.5%, International Developmental Licensed Markets grew 4.2% led by Japan, and International Operated Markets rose 1.4% led by Germany and Australia.

France and China were called out as markets where comparable sales remained negative, and ongoing restructuring charges from the Accelerating the Organization program remain a line item to monitor. The company's diluted share count fell to 708.3 million from 715.9 million a year earlier, which provided a modest tailwind to per-share earnings. Net income rose 9.1% year over year to $2.49 billion, and operating income grew 7.1% to $3.60 billion.

McDonald's also raised its quarterly cash dividend 4% to $1.93 per share, signaling confidence in the underlying cash generation of the business even as the top line disappointed. Loyalty program systemwide sales reached more than $11 billion in the quarter across 70 markets, contributing to total trailing-twelve-month loyalty sales of $41 billion. Those figures underscore that the digital engagement infrastructure is growing, though converting that engagement back into positive guest counts in the U.S. remains the unresolved question for the quarters ahead.