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McDonald's Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 5 November 2025: press release. The quarter’s numbers.

Key takeaways

  • Global comparable sales rose 3.6%: Total company comparable sales were up 3.6% for the quarter, against a decline of 1.5% in the same quarter of 2024, with growth reported across all segments. Source
  • Systemwide sales grew 8%: Systemwide sales were over $36 billion for the quarter, up 8%, or 6% in constant currency. The company attributes the result to comparable sales and net restaurant unit expansion. Source
  • Operating income rose 5%: Operating income was $3,357 million, up 5% (3% in constant currencies), after $39 million of net pre-tax charges in the current year. Source
  • Diluted EPS of $3.18: Diluted EPS was $3.18, up 2%. Excluding $0.04 of current-year charges and $0.10 of prior-year charges, diluted EPS was $3.22, flat against the prior year. Source
  • U.S. comparable sales rose 2.4%: U.S. comparable sales rose 2.4%, against 0.3% a year earlier. The company said the result was primarily driven by positive check growth. Source
  • Restructuring charges of $39 million: Current-quarter pre-tax charges of $39 million were primarily restructuring charges tied to Accelerating the Organization. Nine-month net pre-tax charges were $148 million. Source

“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”

Chris Kempczinski, Chairman and CEO

Results and growth drivers

  • Global comparable sales rose 3.6%: Total company comparable sales were up 3.6% for the quarter, against a decline of 1.5% in the same quarter of 2024, with growth reported across all segments. Source
  • Systemwide sales grew 8%: Systemwide sales were over $36 billion for the quarter, up 8%, or 6% in constant currency. The company attributes the result to comparable sales and net restaurant unit expansion. Source
  • Consolidated revenue rose 3%: Consolidated revenues were $7,078 million, up 3% (1% in constant currencies). Franchised revenues rose 7% to $4,363 million, while Company-operated sales fell 3% to $2,563 million. Source
  • Operating income rose 5%: Operating income was $3,357 million, up 5% (3% in constant currencies), after $39 million of net pre-tax charges in the current year. Source
  • Diluted EPS of $3.18: Diluted EPS was $3.18, up 2%. Excluding $0.04 of current-year charges and $0.10 of prior-year charges, diluted EPS was $3.22, flat against the prior year. Source

Segments and regions

  • U.S. comparable sales rose 2.4%: U.S. comparable sales rose 2.4%, against 0.3% a year earlier. The company said the result was primarily driven by positive check growth. Source
  • International Operated Markets up 4.3%: Comparable sales in International Operated Markets rose 4.3%, after a 2.1% decline a year earlier. Every market in the segment was positive, led by Germany and Australia. Source
  • Developmental licensed markets up 4.7%: Comparable sales in International Developmental Licensed Markets rose 4.7%, after a 3.5% decline a year earlier. Japan led, and all geographic regions were positive. Source

“We're fueling momentum by delivering everyday value and affordability, menu innovation, and compelling marketing that continue to bring customers through our doors.”

Chris Kempczinski, Chairman and CEO

Systemwide sales and loyalty

  • Loyalty sales base grew: Systemwide sales to loyalty members across 60 markets were about $34 billion for the trailing twelve months and over $9 billion for the quarter, up from about $33 billion in the prior release. Source
  • Most restaurants run by local owners: About 95% of restaurants worldwide are owned and operated by independent local business owners. The company reports over 44,000 locations in over 100 countries. Source
  • Loyalty measure uses four quarters: Loyalty sales are measured across 60 markets with loyalty programs and are an aggregation of the prior four quarters of sales from members active in the last 90 days. Source

Margins and operating income

  • Franchised margins drove growth: The company said operating income growth was primarily driven by higher sales-driven Franchised margins, partly offset by higher selling, general and administrative expenses. Source
  • Franchised revenue up 7%: Revenues from franchised restaurants were $4,363 million, up $270 million or 7% from $4,094 million a year earlier. Source
  • Company-operated expenses fell 3%: Company-owned and operated restaurant expenses were $2,172 million, down 3% from $2,248 million, alongside Company-operated sales of $2,563 million, down 3%. Source

Costs, interest and tax

  • Other SG&A rose 24%: Other selling, general and administrative expenses were $664 million, up from $536 million. Depreciation and amortization rose 8% to $121 million. Source
  • Interest and tax expense rose: Interest expense rose 7% to $406 million. The provision for income taxes rose 14% to $671 million. Source
  • Other operating income of $37 million: Other operating income, net was $37 million in the quarter, compared with $39 million of expense in the prior-year quarter. Source

Restructuring and charges

  • Restructuring charges of $39 million: Current-quarter pre-tax charges of $39 million were primarily restructuring charges tied to Accelerating the Organization. Nine-month net pre-tax charges were $148 million. Source
  • Prior-year quarter carried $98 million: Prior-year third-quarter pre-tax charges of $98 million included transaction and impairment costs tied to South Korea and Israel, plus $46 million of restructuring charges. Source
  • Prior-year nine-month restructuring charges: The prior-year nine months included $146 million, or $0.15 per share, of pre-tax charges related to Accelerating the Organization restructuring. Source

Net income and nine-month results

  • Net income up 1%: Net income was $2,278 million, up 1%. Excluding $30 million of net charges, non-GAAP net income was $2,308 million, down 1%. Source
  • Nine-month EPS up 4%: For the nine months, revenues were $19,876 million, up 2%, operating income was $9,237 million, up 4%, and diluted EPS was $8.92, up 4%. Source
  • Non-GAAP nine-month EPS of $9.08: Excluding $0.16 per share of nine-month charges, diluted EPS was $9.08, up 2% from $8.89, or up 1% in constant currencies. Source

Figures management reported

FigureReported
Comparable sales, total company Source3.6%
Comparable sales, U.S. Source2.4%
Comparable sales, International Operated Markets Source4.3%
Comparable sales, International Developmental Licensed Markets Source4.7%
Systemwide sales growth Source8% (6% in constant currency)
U.S. average check driver Sourcepositive check growth
Restaurant locations Sourceover 44,000

Risks management discussed

  • Demand: Management described the business environment as challenging, while reporting growth across segments. Source
  • External: Reported results include currency translation effects; the release also gives constant-currency figures that exclude those effects. Source

Earlier plans management reported on

  • Not stated: The Q3 release refers to restructuring charges under Accelerating the Organization, the same internal modernization effort described in the Q2 release. No progress status is given. Source
  • Not stated: The Q2 release said technology investments and digital scaling would continue to elevate the McDonald’s experience. The Q3 release does not report progress on this.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.