McDonald`s Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.89%.
Did MCD Beat Earnings? Q3 2025 Results
McDonald's came up short on both top and bottom lines in Q3 2025, with non-GAAP diluted EPS of $3.22 missing the $3.3326 consensus by 3.38% and revenue of $7.08 billion landing just 0.16% below expectations — though sales still grew 3.0% year-over-year. The <a href="https://247wallst.com/investing/2025/11/05/mcdonalds-pops-despite-q3-earnings-miss/">stock moved higher despite the miss</a>, as investors focused on the company's strongest comparable sales performance in several quarters, with global comps rising 3.6% — a sharp reversal from the 1.5% decline in Q3 2024 — driven by gains across all three operating segments, including a 4.7% comp lift in International Developmental Licensed Markets. A 21% surge in SG&A, tied to stepped-up marketing spend and digital investment, weighed on earnings even as franchised revenues climbed 7% to $4.36 billion. Loyalty program sales reached roughly $9 billion in the quarter across 60 markets, underscoring the platform's growing role. Management maintained its full-year outlook, projecting capital expenditures of $3.00 to $3.20 billion and an operating margin in the mid-to-high 40% range.
- Global comparable sales increased 3.6% with broad-based growth across all segments
- U.S. comparable sales driven by positive check growth
- International Operated Markets led by Germany and Australia
- International Developmental Licensed Markets led by Japan
- Systemwide sales to loyalty members approximately $9 billion for the quarter across 60 markets
- Higher sales-driven Franchised margins representing approximately 90% of restaurant margin dollars
- Franchised margins grew 7% to $3,697 million for the quarter
“We increased global Systemwide sales by 6% and grew comp sales across all segments, a testament to our ability to deliver sustainable growth even in a challenging environment.”
McDonald's CEO, on the earnings call
Forward Guidance & Outlook
For full year 2025, McDonald's expects: net restaurant unit expansion to contribute slightly over 2% to Systemwide sales growth in constant currencies; SG&A of about 2.2% of Systemwide sales; operating margin in the mid-to-high 40% range; interest expense to increase about 4% driven by higher average debt balances and rates; effective income tax rate between 21% and 22%; capital expenditures between $3.0 and $3.2 billion with approximately 2,200 new restaurant openings and nearly 1,800 net restaurant additions; and free cash flow conversion rate in the low-to-mid 80% range.
MCD YoY Financials
MCD Revenue by Segment
MCD Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.