Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Global comparable sales | 1.5% | Not stated |
| U.S. comparable sales | -0.2% | Not stated |
| Adjusted earnings per share | $3.57 | 11% increase on a constant currency basis |
| Restaurant margins | $4.2 billion | Not stated |
| SG&A expenses | 2% of system-wide sales | Not stated |
Guidance and outlook
- We currently estimate no impact of foreign currency translation on adjusted earnings per share for the fourth quarter versus the prior year.
- We continue to expect SG&A as a percentage of system-wide sales for the full year to be approximately 2.2%.
- We now expect 2,500 gross restaurant openings globally this year.
- We now expect 2026 capital expenditures of about $3.7 billion.
How management sounded
Balanced (+3 on our -10 to +10 scale). Management expressed encouragement regarding U.S. traffic trends and international share gains, but acknowledged a soft consumer environment and the need for further work on U.S. value. Management sounded more upbeat than on 1% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
U.S. Value Strategy
Asked: Is there alignment on value as the primary mover for 2027?
Answer: Management confirmed strong alignment on entry-level value, noting that 40% of the U.S. system is already participating in tests or similar programs.
U.S. Sales Trajectory
Asked: How should we think about the U.S. sales trajectory for the balance of the year?
Answer: Management is encouraged by baseline traffic trends in September and October and remains confident in exiting 2026 in a stronger position.
International Markets
Asked: To what extent are protests weighing on results in France?
Answer: France and Ukraine are weighing on performance due to external issues, but the company has taken steps to improve governance and agility in France.
Beverage Platform
Asked: Is the beverage platform cannibalizing other items, and what is the strategy for new news?
Answer: The platform is driving incremental visits and sales, particularly after lunch, and management plans to rotate new beverage options while maintaining the core platform.
What to watch before the next call
- The results of the 8-week U.S. value test and the subsequent national launch in early 2027.
- Operational progress in France following the recent governance changes and franchisee vote.
- The impact of mid-single-digit food and paper inflation on 2027 pricing strategies.
