McDonald's beats on profit, misses on sales and lifts its quarterly dividend 4%

Chairman and CEO Chris Kempczinski says the US business improved as the third quarter went on, after the company stepped in on value.

McDonald's earned $3.57 a share in the third quarter, excluding restructuring charges, which is $0.15 better than expected. Revenue of $7.16B fell short of the $7.36B analysts expected.

The strength is therefore in profit, not sales. The most direct read on the sales side is what management says about the US. Kempczinski said the company is encouraged by improvement there as the quarter progressed, following its intervention on value.

The 2026 outlook shows what has to hold the profit line in place. McDonald's expects an operating margin in the mid-to-high 40% range and selling, general and administrative expenses of about 2.2% of systemwide sales. It expects net restaurant openings to add about 2.5% to full-year systemwide sales growth in constant currencies.

Interest expense is the cost pushing the other way. McDonald's expects it to rise between 4% and 6% this year, driven mainly by higher average interest rates, and the margin outlook has to absorb that.

The board declared a 4% increase in the quarterly cash dividend, to $1.93 per share, payable December 15, 2026.