Why McDonald's Stock Popped Today
Key Points
U.S. same-store sales appear to be recovering.
McDonald's raised its dividend for the 50th consecutive year.
- 10 stocks we like better than McDonald's ›
Shares of McDonald's (NYSE:MCD) jumped more than 6% on Wednesday after the restaurant giant's profits topped investors' expectations.
Image source: Getty Images.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
McDonald's value-focused strategy is resonating with customers
McDonald's global systemwide sales rose 4% to over $38 billion in the third quarter, driven by new store openings and higher sales at existing locations.
Global comparable sales, which measure revenue at restaurants open for at least thirteen months, grew 1.5%, fueled by growth in international markets. Yet U.S. comps were down slightly by 0.2%.
McDonald's, like many restaurant chains in the U.S., is dealing with slowing traffic as cash-strapped consumers dine out less often. McDonald's is revamping its value-priced offerings in response to this trend. The strategy appears to be working.
"In the U.S., performance improved as the quarter progressed, with comparable sales turning positive in September, following a slightly negative result in July and August," CEO Chris Kempczinski said during a conference call with analysts.
Shareowners have larger dividends headed their way
All told, McDonald's adjusted operating income climbed 8%. Its adjusted earnings per share, in turn, jumped 11% to $3.57. That was nicely above Wall Street's estimates of $3.38.
This strengthening profitability enabled the passive-income-producing stalwart to raise its quarterly cash payout to investors by 4% to $1.93 per share. McDonald's has now increased its dividend for a remarkable 50 straight years.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McDonald's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $342,020!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,270,017!*
Now, it’s worth noting Stock Advisor’s total average return is 885% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of November 4, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.
Recommended Articles
