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McDonald’s (MCD) reported 3Q26 results yesterday, and the short version is that the U.S. engine is still idling... but it turned over in September. U.S. comparable sales fell 0.2%, the first decline since 1Q25, with fewer guests largely offset by a higher check. Management says the U.S. was slightly negative in July and August and positive in September, after it put back some of the digital offers it had pulled in the spring.
The rest of the System did the lifting. Global comps rose 1.5%, Systemwide sales rose 4% in constant currency to more than $38bn, and adjusted earnings per share rose 11% to $3.57. Profit grew much faster than sales: adjusted operating income rose 8% on revenue up 1%. As we’ll show, a good part of that gap came from selling restaurants and property rather than from selling burgers.
We’re also writing into a very different market from the one that greeted the results. As we type this, the day after the post-election rally, an unwind of AI and chip stocks turned into a broad rout: at last check the Nasdaq was down about 5% and the S&P 500 more than 3%, erasing Wednesday’s gains. The financial press and observers suggest aggressive selling by large institutions and de-leveraging or even forced liquidations by hedge funds. It’s ugly out there…