McDonald’s reported stronger third-quarter sales as its value-driven growth approach attracted cost-conscious consumers across major markets. The company’s focus on affordable menu items and promotional deals helped offset declining visits from lower-income customers.
CEO Chris Kempczinski said the chain’s emphasis on value-driven growth is helping maintain momentum despite economic headwinds. However, he cautioned that financial stress among U.S. and international consumers may persist well into 2026. Many customers, he added, remain uncertain about their household budgets amid inflation and policy concerns.
During the July-to-September period, visits from lower-income diners in the U.S. continued to decline, extending a two-year trend. Meanwhile, higher-income customers are still visiting but are increasingly seeking deals and lower prices. Kempczinski emphasized that value matters to all consumers, regardless of income level.
McDonald’s leaned heavily into its value-driven growth plan this year. In early September, the company introduced Extra Value Meals across the U.S., complementing its existing McValue menu launched in January. In Australia, the company fixed pricing for value items for 12 months, resulting in increased customer traffic.
Snack Wraps, which returned to U.S. stores in July after nearly a decade, also fueled the company’s performance. The $2.99 product quickly became McDonald’s most popular chicken item in recent years, with one in five customers purchasing it during the first month.
Globally, same-store sales rose 3.6% in the third quarter, slightly exceeding analysts’ expectations. In the U.S., sales grew 2.4%. Despite higher revenue, profit margins tightened due to McDonald’s cost-sharing strategy with franchisees. The company contributed $75 million in discounts during the fourth quarter and invested $40 million in Extra Value Meal marketing.
Net income climbed 1% to $2.28 billion, while revenue increased 3% to $7.08 billion. However, adjusted earnings per share of $3.22 came in slightly below forecasts. McDonald’s shares gained 3% following the report.
Kempczinski noted that meaningful recovery in spending from households earning under $45,000 remains unlikely without relief in essentials like food, childcare, and rent. Inflation in those areas, he said, continues to strain sentiment.
Industry peers are also grappling with similar trends. Chipotle and Cava saw slower growth as customers sought cheaper options, while Taco Bell’s value menu helped the brand achieve a 7% rise in same-store sales.
McDonald’s leaders expect value-driven growth to remain central to their global strategy as economic uncertainty continues. The company plans to strengthen its low-cost offerings and marketing initiatives to retain customers through 2025.
Value-driven growth, Kempczinski said, will guide McDonald’s through challenging economic times while reinforcing its commitment to affordability and accessibility.
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