Key facts
- US comparable sales fell 0.2% in the quarter ended September 30, versus analysts' 0.1% fall expectation compiled by LSEG.
- Visits to McDonald's US restaurants fell 4.6% in the third quarter from a year earlier, per data firm Placer.ai.
- Global comparable sales rose 1.5%, in line with expectations, the company reported.
- Adjusted earnings rose to $3.57 per share from $3.22 a year earlier, helped by a roughly 4% decline in operating costs and expenses.
- Traffic stayed below year-ago levels in October despite the return of the Monopoly promotion and Halloween-themed Boo Buckets, per Placer.ai.
- Restaurant Brands International topped sales expectations last week, helped by discounts and promotions, while Yum Brands said Taco Bell sales returned to growth.
McDonald's reported a 0.2% fall in US comparable sales for the quarter ended September 30, a bigger decline than the 0.1% drop analysts expected, according to data compiled by LSEG. It was the chain's first such decline after five quarters of growth.
Customer traffic stayed under pressure. Visits to McDonald's US restaurants fell 4.6% in the three-month period from a year earlier, according to data firm Placer.ai, and remained below year-ago levels in October despite the return of the Monopoly promotion and Halloween-themed Boo Buckets.
Over the previous two years McDonald's rolled out offers including an under-$3 menu and a $4 breakfast meal as higher living costs pushed consumers toward cheaper alternatives from rivals, convenience stores and home-cooked meals. CEO Chris Kempczinski said in a statement on Wednesday that the company was "encouraged by improvement as the quarter progressed following our intervention on value." Chief Financial Officer Ian Border told investors at a September 23 event that US sales would likely be negative for the quarter but that September would likely be positive.
Globally, comparable sales rose 1.5%, in line with expectations. Adjusted earnings rose to $3.57 per share from $3.22 a year earlier, helped by a roughly 4% decline in operating costs and expenses.
Among rivals, Burger King parent Restaurant Brands International topped sales expectations last week, helped by discounts and promotions. Yum Brands said on Tuesday that Taco Bell's sales have returned to growth following a food safety-related hit.