McDonald’s turnaround gains traction as U.S. sales stabilize after third quarter

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McDonald’s U.S. sales recovery

Highlights

McDonald’s U.S. same-store sales declined 0.2% in Q3, outperforming Wall Street’s expected 0.5% drop, returning to growth in September with improved traffic trends into October.
Shares surged 6.5% Wednesday, rebounding over 20% from early-October lows as value-focused marketing and digital promotions helped stabilize U.S. guest counts following sustained competitive pressure.
Q3 revenue missed expectations, prompting management to test two new value menus and plan a nationwide rollout of the stronger option in early 2027 while addressing international softness.

U.S. sales trends improve as value strategy gains hold

As reported by CNBC, Jim Cramer says McDonald’s turnaround is beginning to gain traction after the company’s third-quarter results show improvement in its core U.S. business.

U.S. same-store sales decline 0.2% in the quarter, better than the 0.5% drop Wall Street expects, and return to growth in September after falling in July and August. Encouraging traffic trends continue into October, suggesting the company’s push to rebuild momentum is starting to have an effect.

McDonald’s sharpens its focus on affordability during the September quarter by restoring digital promotions and shifting marketing toward value offerings, including $5 and $6 meal deals. CEO Chris Kempczinski says the steps taken in the U.S. begin to stabilize baseline guest counts and deliver progress through the quarter.

Execution remains key for further stock gains

McDonald’s shares surge 6.5% on Wednesday, extending their rebound from early-October lows to more than 20%. The recovery follows a steep slide from the stock’s March peak, when weakening U.S. sales and stronger competition from Burger King pressure investor sentiment.

Cramer says he remains positive on the stock, but he warns that valuation alone is no longer enough to support another leg higher after the recent rebound. He says continued gains will require McDonald’s to keep improving operations, while the company also works through softer international performance, including weakness in France.

McDonald’s misses revenue expectations for the quarter, and management plans further measures including broader entry-level value offerings, stronger digital promotions, and improvements in food quality and service. The company is also testing two new value menus and plans to roll out the stronger option nationwide in early 2027.

Walmart’s upgrade to a buy rating highlighted how persistent inflation is reinforcing the retailer’s appeal to budget-conscious shoppers and supporting market share gains. Our earlier coverage noted that growth in higher-margin businesses, automation, and expanding digital services—including the AI-powered Sparky assistant—could help lift margins and underpin further upside for the stock.

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