01—Abstract
Summary
Summary of the 10-Q filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
McDonald's Corporation reported solid performance for the quarter and nine months ended September 30, 2025.
Total revenues increased by 3% to $7.1 billiona for the quarter and by 2% to $19.9 billion for the nine months, driven by growth in franchised restaurant revenues and positive comparable sales across all segments. The company demonstrated continued operational strength with a 5% increase in operating income for the quarter and a 4% increase for the nine months. Diluted earnings per share saw a modest increase of 2% to $3.18 for the quarter and 4% to $8.92 for the nine months.
Strategic initiatives like 'Accelerating the Arches' are progressing, though the company incurred restructuring charges related to these efforts. The company also continues to prioritize shareholder returns through dividends and share repurchases.
02—Key points
Key Highlights
- Total revenues for the third quarter of 2025 increased by 3% year-over-year to $7.1 billion, while nine-month revenues reached $19.9 billion.
- Global comparable sales increased by 3.6% for the quarter and 2.2% for the nine months, with positive contributions from all segments (U.S., International Operated Markets, and International Developmental Licensed Markets).
- Operating income grew by 5% to $3.4 billion for the quarter and 4% to $9.2 billion for the nine months.
- Diluted earnings per share (EPS) rose to $3.18 for the quarter and $8.92 for the nine months, reflecting a 2% and 4% increase, respectively.
- The company continued its share repurchase program, repurchasing approximately 1.7 million shares for $503 million in the quarter.
- Restructuring charges related to the 'Accelerating the Organization' initiative amounted to $39 million for the quarter and $148 million for the nine months.
- The company projects net restaurant unit expansion to contribute over 2% to 2025 Systemwide sales growth and expects capital expenditures between $3.0 to $3.2 billion for the full year 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, McDonalds Corp kept $0.32.
- Revenue$7.08B100.0%
- Cost of revenue−$666.0M9.4%
- Gross profit$6.41B90.6%
- Operating costs−$3.06B43.2%
- Operating income$3.36B47.4%
- Interest, other & tax−$1.08B15.2%
- Net income$2.28B32.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $7.08B$6.87B | +3.0% |
| Cost of Revenue | $666.00M$646.00M | +3.1% |
| Gross Profit | $6.41B$6.23B | +3.0% |
| SG&A Expenses | $785.00M$647.00M | +21.3% |
| Operating Expenses | $3.72B$3.69B | +1.0% |
| Operating Income | $3.36B$3.19B | +5.3% |
| Interest Expense | $406.00M$381.00M | +6.6% |
| Net Income | $2.28B$2.25B | +1.0% |
| EPS (Basic) | $3.20$3.15 | +1.6% |
| EPS (Diluted) | $3.18$3.13 | +1.6% |
| Shares Outstanding (Basic) | 713717 | −0.5% |
| Shares Outstanding (Diluted) | 716720 | −0.6% |
05—Questions
Frequently Asked Questions
How did McDonald's revenue perform in the third quarter of 2025?
McDonald's reported a 3% increase in total revenues for the third quarter ended September 30, 2025, reaching $7.1 billion. This growth was primarily driven by franchised restaurant revenues and positive comparable sales across its global segments.
What is the company's outlook for new restaurant development?
McDonald's plans to accelerate restaurant openings, aiming for over 4% net unit growth in 2025 and progressing towards a target of 50,000 restaurants by the end of 2027. For the full year 2025, capital expenditures are expected to be between $3.0 and $3.2 billion, with approximately 2,200 new restaurants planned globally.
How did the 'Accelerating the Organization' initiative impact the financials?
The 'Accelerating the Organization' initiative, aimed at modernizing ways of working, resulted in restructuring charges. For the nine months ended September 30, 2025, these charges amounted to $148 million, impacting net income. The company expects ongoing restructuring charges as the strategy progresses.
What is the company's strategy for digital, delivery, and drive-thru?
McDonald's is focusing on 'Doubling Down on the 4D's: Digital, Delivery, Drive Thru and Restaurant Development'. This includes enhancing its digital loyalty program with a target of 250 million active users by 2027, expanding delivery services (aiming for 30% of Systemwide delivery sales from its mobile app by 2027), leveraging its extensive drive-thru network, and accelerating new restaurant development.
06—Continue