By Heather Haddon

McDonald's said its big push into value meals is paying off at a time when more consumers are feeling economic pressure.

The Chicago-based burger giant said sales for its most recent quarter climbed after it boosted spending on value meals, new products and marketing, part of the Golden Arches' broader effort to win back cost-conscious eaters.

"We continue to remain cautious about the health of the consumer," Chief Executive Chris Kempczinski said during an investor call.

McDonald's has been working to restore its reputation for value after raising menu prices in the postpandemic period. McDonald's in September resumed advertising Extra Value Meals, and the company is spending tens of millions of dollars behind marketing and discounting the deals.

The Extra Value Meals account for around 30% of U.S. transactions, the company said Wednesday. The investments are a drag in the short term, executives said, but hopefully will get consumers to believe McDonald's is a good deal again.

"This is an environment where you just have to grind it out," Kempczinski said.

McDonald's reported Wednesday that higher checks helped lift its U.S. same-store sales by 2.4% for the three months ended Sept. 30, swifter growth than analysts expected. Global same-store sales grew 3.6%.

McDonald's shares rose 2.3% in morning trading. The company maintained its fiscal year outlook for operating margins, capital expenditures and unit growth.

Restaurants are facing a challenging year as Americans pull back on eating out. Chipotle Mexican Grill last week reported sputtering sales after lower-income and younger consumers cut their burrito spending. Yum Brands is exploring a sale of its Pizza Hut brand, while a group of investors have agreed to take Denny's private after several quarters of slowing sales.

Fast-food traffic is down 2.3% this year, compared with a 1.6% drop for restaurants overall, according to market-research firm Black Box Intelligence.

Kempczinski said the U.S. economy continues to be bifurcated, with lower-income consumers pulling back on fast-food visits while higher-income customers are coming more often. Consumer pressures will continue into next year, he said.

Lower-income consumers are feeling the pressure of rising rents, food bills and child care, while uncertainty around SNAP food assistance from the federal government presents a new strain, Kempczinski said. Those consumers will continue to pull back on their spending unless they feel their incomes begin to grow, he said.

For its third quarter, McDonald's reported per-share earnings of $3.22, after adjusting for one-time items. Analysts polled by FactSet had projected $3.33.

Net income increased to $2.28 billion, 1% higher than the same period last year. Revenue grew 3% to $7.08 billion, about even with what analysts had forecast.

McDonald's said inflation pressured its profit margins in its domestic company-owned restaurants, and it expects costs to remain elevated next year. Beef costs are particularly challenging right now, the company said Wednesday.

The company spent $40 million during the quarter to advertise the combo deals, and expects to provide around $90 million in support to franchisees this year to discount the meals.

Sales for new beverages such as cold coffees, fruit refreshers and crafted soda being tested in roughly 500 U.S. restaurants were exceeding expectations, Kempczinski said.

Write to Heather Haddon at heather.haddon@wsj.com

(END) Dow Jones Newswires

November 05, 2025 10:33 ET (15:33 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.