According to CNBC, McDonald's reported third-quarter earnings on November 5 that missed Wall Street estimates. The fast-food chain earned $3.22 per share excluding restructuring charges. Revenue rose 3% to $7.08 billion. The company's same-store sales increased 3.6%, reversing a 1.5% decline from the year-ago period.

In the United States, same-store sales grew 2.4%, exceeding analyst estimates of 1.9%. The growth came from higher average check amounts, suggesting customers paid more per visit. CEO Chris Kempczinski stated the results demonstrate the company's ability to deliver sustainable growth in a challenging environment. McDonald's reintroduced products including Snack Wraps at $3.99 and Extra Value Meals in September.

Consumer Spending Pressures Drive Menu Changes

The earnings report reflects broader shifts in consumer behavior across the restaurant industry. Fox Business reported in May 2025 that economic uncertainty has led Americans to reduce fast-food spending. Low-income consumer traffic declined by nearly double digits, while middle-income traffic fell almost as much.

Restaurant prices have risen 4.1% over the past year compared to 1.1% for groceries. This gap pushes more consumers to eat at home. McDonald's has responded by prioritizing value and affordability. The company brought back Snack Wraps for the first time in nine years. The reintroduction of Extra Value Meals targets budget-conscious diners who have reduced restaurant visits.

Value Wars Reshape Fast Food Landscape

McDonald's earnings come amid intense competition for price-sensitive consumers. Yahoo Finance reported in January 2025 that the company launched its McValue platform, the first national value offering since 2018. The platform includes $5 meal deals and buy-one-get-one-for-$1 promotions.

Analysts note that when McDonald's discounts, competitors must follow. Burger King, Wendy's, and other chains have ramped up their own value offerings. The U.S. fast food market reached $330.56 billion in 2025, according to OysterLink. Americans spend an average of $148 monthly on fast food. The market is projected to expand to $436.07 billion by 2029.

Franchise operators acknowledge that value promotions compress margins. However, they expect increased customer traffic to offset lower per-item profits. The competition extends beyond traditional fast-food chains. Fast-casual restaurants like Chipotle and Cava have gained market share by offering quality and customization. These chains position themselves as premium alternatives while McDonald's focuses on affordability.

Further Reading

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