McDonald's Stock Jumps 5%: Earnings Beat Even as US Sales Slip

McDonald's stock jumped about 5% on Wednesday, November 4, 2026, after the burger giant beat earnings expectations even though US sales slipped. Adjusted earnings came in at $3.57 per share, ahead of the $3.38 Wall Street expected, while revenue of $7.16 billion missed forecasts — a split result that investors chose to reward.

What happened in McDonald's Q3?

McDonald's reported third-quarter results before the open on Wednesday. Adjusted earnings per share were $3.57, up from $3.22 a year earlier and above the $3.38 consensus. On a GAAP basis, diluted earnings were $3.51 per share, up 10% from $3.18 a year ago. Net income rose 9% to about $2.49 billion, even though revenue grew only 1% to $7.157 billion, short of the roughly $7.28 billion to $7.29 billion analysts had expected.

The profit beat was helped by tighter costs. Operating costs and expenses fell by about 4%, and the company's operating margin widened, showing that McDonald's protected profitability even in a slow sales quarter. The company also raised its quarterly dividend by 4% to $1.93 per share.

Why did US sales fall?

Comparable sales in the United States, McDonald's largest market, fell 0.2% in the quarter. That was slightly worse than the 0.1% decline analysts expected, and it marked the first US decline after five consecutive quarters of growth. The drop came from fewer guest visits, as financially stretched customers cut back on restaurant trips despite the chain's push on value meals.

The picture was stronger outside the US. Global comparable sales rose 1.5%, in line with expectations, as international markets offset the softer American result. That split — weaker traffic at home, steadier demand abroad — is the central story of the quarter.

Chief Executive Chris Kempczinski said the company was encouraged by how the US business improved as the quarter progressed following its intervention on value. In other words, management argues the value push started to work late in the quarter, even though it was not enough to lift the full three months into growth.

Why is the stock blowing up today?

Shares rose about 5% to around $275 in Wednesday trading, from a close of $263.04 on Tuesday. Several things came together. First, the earnings beat was clear: $3.57 against $3.38 expected is not a rounding error. Second, profit grew much faster than sales, which reassured investors worried about traffic. Third, the dividend increase signalled confidence. Fourth, McDonald's was rising into a very strong broader market — the Dow Jones Industrial Average jumped more than 1,000 points on Wednesday after Democrats won control of Congress — which lifted blue-chip names broadly.

Context matters too. The stock had fallen sharply this year, so expectations were low heading into the print. A beat against low expectations, plus signs that US trends improved late in the quarter, was enough to trigger a relief rally rather than a sell-off on the revenue miss.

Key facts

Adjusted EPS: $3.57, versus $3.38 expected and $3.22 a year ago
Revenue: $7.16 billion, up 1% year on year, below the roughly $7.29 billion consensus
Net income: About $2.49 billion, up 9% year on year
US comparable sales: Down 0.2%, the first decline after five quarters of growth
Global comparable sales: Up 1.5%
Dividend: Raised 4% to $1.93 per share
Stock reaction: Up about 5% to around $275 on Wednesday

What's next?

The question for the next quarter is traffic. Investors will watch whether the late-quarter US improvement Kempczinski described turns into positive comparable sales, or whether value-conscious customers keep staying away. International growth and cost discipline carried this quarter; a durable US recovery would need guest counts, not just higher average spending, to come back. This report describes what happened and how markets reacted; it is not a recommendation to buy, sell or hold any security.

Sources

FAQ

Did McDonald's beat earnings in Q3 2026?

Yes. Adjusted earnings were $3.57 per share, beating the $3.38 Wall Street expected, although revenue of $7.16 billion missed the roughly $7.29 billion consensus.

Why did McDonald's US sales fall?

US comparable sales fell 0.2% because fewer guests visited, as stretched customers cut restaurant trips. It was the first US decline after five consecutive quarters of growth.

Why did McDonald's stock rise if revenue missed?

Investors focused on the clear profit beat, 9% net income growth, cost discipline, a 4% dividend increase to $1.93, and signs US trends improved late in the quarter, all on a day the broader market rallied sharply.

How did McDonald's do outside the US?

Better than at home. Global comparable sales rose 1.5%, showing international markets offset the softer US result in the quarter.