McDonald's Non-GAAP EPS of $3.22 falls short by $0.11, with revenue of $7.08B missing expectations by $10M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy MCD?
Source: SeekingAlpha
Earnings Performance: McDonald's reported Q3 Non-GAAP EPS of $3.22, missing expectations by $0.11, with revenue of $7.08 billion, also falling short by $10 million.
Sales Growth: Global comparable sales increased by 3.6%, with U.S. sales up 2.4%, International Operated Markets up 4.3%, and International Developmental Licensed Markets up 4.7%.
Systemwide Sales: The company achieved over $36 billion in global systemwide sales for the quarter, marking an 8% increase year-over-year, with loyalty member sales reaching approximately $34 billion over the past year.
Market Reaction: Following the earnings report, McDonald's shares fell by 2% in after-hours trading, amid discussions of its strategic business model and potential risks.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MCD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MCD
Wall Street analysts forecast MCD stock price to rise
23 Analyst Rating
12 Buy
11 Hold
0 Sell
Moderate Buy
Current: 308.530
Low
300.00
Averages
337.63
High
375.00
Current: 308.530
Low
300.00
Averages
337.63
High
375.00
About MCD
McDonald's Corporation is a global foodservice retailer. Its segment includes U.S., International Operated Markets, and International Developmental Licensed Markets & Corporate. The U.S. segment is its largest market and is 95% franchised. The International Operated Markets segment is comprised of markets, or countries in which it operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, Poland, Spain, and the United Kingdom. This segment is 89% franchised. The International Developmental Licensed Markets & Corporate segment is comprised of developmental licensee and affiliate markets, including equity method investments in China and Japan. This segment is 99% franchised. Its menu features hamburgers and cheeseburgers, the Big Mac, the Quarter Pounder with Cheese, the Filet-O-Fish, and several chicken sandwiches, such as the McChicken and McCrispy as well as Chicken McNuggets, Fries, shakes, sundaes, cookies, soft drinks, coffee, and other beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fast-Food Sector Faces New Burger Rivalry
- Burger King's New Launch: Burger King has rolled out a significant revamp of its Whopper across over 7,000 U.S. locations, featuring a premium bun and new packaging designed to enhance customer experience and maintain freshness, which is expected to attract more consumers.
- McDonald's New Burger Introduction: McDonald's has launched the Big Arch in the U.S., which includes two quarter-pound 100% beef patties and three slices of white cheddar cheese, totaling 1,020 calories, aiming to entice customers with a rich flavor profile, although market reactions remain unclear.
- Intensifying Market Competition: While the Big Arch has garnered more attention, the quieter launch of the Whopper has received a higher mix of favorable reviews, indicating the fast-food chains' efforts to improve quality amidst challenges with price-sensitive consumers.
- Investor Focus on Earnings Reports: The major hamburger launches will draw investor attention to first-quarter earnings reports, with Burger King maintaining Whopper prices at $5 to $6 despite annual upgrade costs of approximately $4,000 per location, which could positively impact parent company Restaurant Brands International.
See More
The Iran Conflict May Persist: Current Investment Opportunities for Success.
- Current Market Status: The Nasdaq is currently in a correction, having dropped over 10% from its recent highs.
- Bear Market Concerns: There are increasing fears that the Nasdaq may soon enter a bear market, defined as a decline of 20%.
- Wall Street Perspective: Despite the downturn, there is a common belief on Wall Street that opportunities for profit exist in other sectors.
- Market Sentiment: The overall sentiment reflects anxiety about the tech-heavy index's performance amidst potential further declines.
See More
Locating Profitable Stocks During the Iran War Crisis
Current Market Status: The Nasdaq Composite is currently in a correction, having fallen over 10% from its recent highs.
Bear Market Concerns: There are increasing fears that the index may soon enter a bear market, defined as a decline of 20% or more.
Wall Street Perspective: Despite the downturn, the sentiment on Wall Street remains optimistic, suggesting that there are always opportunities for gains in other sectors.
Investment Outlook: Investors are encouraged to look for potential bull markets in different areas, even amidst the current challenges faced by the tech-heavy index.
See More
McDonald's Capitalizes on the Success of 'KPop Demon Hunters'
McDonald's Collaboration: McDonald's is launching adult breakfast and lunch/dinner meals inspired by characters from Netflix's Oscar-winning animated movie, KPop Demon Hunters.
Leveraging Popularity: The fast-food chain aims to capitalize on the recent success of the film to attract customers with themed menu items.
See More
McDonald's and RBI Face Operational Challenges Amid Iran Conflict
- Supply Chain Pressures: McDonald's and Restaurant Brands International are facing complex challenges in global demand and supply chains due to the Iran conflict, with limited immediate impacts on U.S. supply chains but increasing macroeconomic fallout that could affect future profitability.
- Consumer Spending Slowdown: High-frequency data indicates that low-income consumers are under greater pressure from rising gas prices, leading to reduced discretionary spending on food away from home, which could directly impact sales for both companies, particularly in international markets.
- Franchisee Profitability Under Pressure: Rising energy and commodity costs are tightening franchisee margins, and while McDonald's has leveraged strong hedging programs to shield stores from immediate volatility, prolonged high energy prices could hinder store renovations and digital expansion plans.
- International Market Challenges: The geopolitical situation has disrupted supply chains and increased logistics costs in Asia, posing challenges for Restaurant Brands International in maintaining consistent value messaging, and while analysts remain optimistic about long-term unit growth potential, near-term earnings reports may reflect a cautious outlook.
See More
McDonald's Stock Price Fluctuation Analysis
- Price Range Analysis: McDonald's 52-week low is $283.47 per share, with a high of $341.75, and the last trade at $306.28 indicates stock price fluctuations within this range, reflecting market caution regarding its future performance.
- Technical Indicator Observation: According to data from TechnicalAnalysisChannel.com, McDonald's stock has fallen below its 200-day moving average, potentially signaling further downside risk in the short term, prompting investors to closely monitor market dynamics.
- Market Sentiment Assessment: The current stock price of $306.28 shows a significant gap from the 52-week high, suggesting that market expectations for McDonald's growth may be weakening, leading to a more cautious investor sentiment.
- Investor Focus: As stock prices fluctuate, investors should pay attention to changes in McDonald's fundamentals and market conditions to make more informed investment decisions.
See More
Fast-Food Sector Faces New Burger Rivalry
- Burger King's New Launch: Burger King has rolled out a significant revamp of its Whopper across over 7,000 U.S. locations, featuring a premium bun and new packaging designed to enhance customer experience and maintain freshness, which is expected to attract more consumers.
- McDonald's New Burger Introduction: McDonald's has launched the Big Arch in the U.S., which includes two quarter-pound 100% beef patties and three slices of white cheddar cheese, totaling 1,020 calories, aiming to entice customers with a rich flavor profile, although market reactions remain unclear.
- Intensifying Market Competition: While the Big Arch has garnered more attention, the quieter launch of the Whopper has received a higher mix of favorable reviews, indicating the fast-food chains' efforts to improve quality amidst challenges with price-sensitive consumers.
- Investor Focus on Earnings Reports: The major hamburger launches will draw investor attention to first-quarter earnings reports, with Burger King maintaining Whopper prices at $5 to $6 despite annual upgrade costs of approximately $4,000 per location, which could positively impact parent company Restaurant Brands International.
See More
The Iran Conflict May Persist: Current Investment Opportunities for Success.
- Current Market Status: The Nasdaq is currently in a correction, having dropped over 10% from its recent highs.
- Bear Market Concerns: There are increasing fears that the Nasdaq may soon enter a bear market, defined as a decline of 20%.
- Wall Street Perspective: Despite the downturn, there is a common belief on Wall Street that opportunities for profit exist in other sectors.
- Market Sentiment: The overall sentiment reflects anxiety about the tech-heavy index's performance amidst potential further declines.
See More
Locating Profitable Stocks During the Iran War Crisis
Current Market Status: The Nasdaq Composite is currently in a correction, having fallen over 10% from its recent highs.
Bear Market Concerns: There are increasing fears that the index may soon enter a bear market, defined as a decline of 20% or more.
Wall Street Perspective: Despite the downturn, the sentiment on Wall Street remains optimistic, suggesting that there are always opportunities for gains in other sectors.
Investment Outlook: Investors are encouraged to look for potential bull markets in different areas, even amidst the current challenges faced by the tech-heavy index.
See More
McDonald's Capitalizes on the Success of 'KPop Demon Hunters'
McDonald's Collaboration: McDonald's is launching adult breakfast and lunch/dinner meals inspired by characters from Netflix's Oscar-winning animated movie, KPop Demon Hunters.
Leveraging Popularity: The fast-food chain aims to capitalize on the recent success of the film to attract customers with themed menu items.
See More
McDonald's and RBI Face Operational Challenges Amid Iran Conflict
- Supply Chain Pressures: McDonald's and Restaurant Brands International are facing complex challenges in global demand and supply chains due to the Iran conflict, with limited immediate impacts on U.S. supply chains but increasing macroeconomic fallout that could affect future profitability.
- Consumer Spending Slowdown: High-frequency data indicates that low-income consumers are under greater pressure from rising gas prices, leading to reduced discretionary spending on food away from home, which could directly impact sales for both companies, particularly in international markets.
- Franchisee Profitability Under Pressure: Rising energy and commodity costs are tightening franchisee margins, and while McDonald's has leveraged strong hedging programs to shield stores from immediate volatility, prolonged high energy prices could hinder store renovations and digital expansion plans.
- International Market Challenges: The geopolitical situation has disrupted supply chains and increased logistics costs in Asia, posing challenges for Restaurant Brands International in maintaining consistent value messaging, and while analysts remain optimistic about long-term unit growth potential, near-term earnings reports may reflect a cautious outlook.
See More
McDonald's Stock Price Fluctuation Analysis
- Price Range Analysis: McDonald's 52-week low is $283.47 per share, with a high of $341.75, and the last trade at $306.28 indicates stock price fluctuations within this range, reflecting market caution regarding its future performance.
- Technical Indicator Observation: According to data from TechnicalAnalysisChannel.com, McDonald's stock has fallen below its 200-day moving average, potentially signaling further downside risk in the short term, prompting investors to closely monitor market dynamics.
- Market Sentiment Assessment: The current stock price of $306.28 shows a significant gap from the 52-week high, suggesting that market expectations for McDonald's growth may be weakening, leading to a more cautious investor sentiment.
- Investor Focus: As stock prices fluctuate, investors should pay attention to changes in McDonald's fundamentals and market conditions to make more informed investment decisions.
See More
