Schwab Network on $MCD (Nov 4, 2026)

Let's move on to McDonald's. The CEO made some positive comments a short while ago. Yes, the results are mixed at McDonald's. This is how our colleague, Alex Coffey, described the situation this morning.

This quarter was better than some had feared, because their earnings performed better than expected, but revenues came in lower than anticipated. So, the conclusion here is that they manage expenses well.

The adjusted earnings per share amounted to 3.57. Market expectations were for 3.38. Revenue came in disappointingly at 7.16 billion. We were expecting 7.29 billion here.

They are controlling costs, but they still need to attract more customers and get more people to buy through what they are trying to offer. I don't want to call it a value menu, but rather lower-priced offers, like the three-dollar menu and the four-dollar breakfast.

They are trying to use that as potential agents of change, but they have lost market share to competitors.

We have seen a decrease in similar sales in the United States of 0.2 percent. This is worse than expected. The market was expecting a slight decline there. They were expecting a decrease of 0.1 percent.

This is not the direction investors would like to see. The number of visits also decreased compared to last year.

Placer.ai has some data on that. They say visits have dropped by 4.6 percent, so it's a traffic problem for McDonald's. They have faced difficulties in attracting consumers to stores through value offers because they are competing with Burger King's parent company, which has been performing better than expected recently.

Yum Brands has Taco Bell, and as you know, people are looking for the cheapest option. This is one of the challenges. Can McDonald's compete on this front? Currently, investors are pleased with the results because they are better than feared.