MCD's International Markets Stay Resilient: What's Supporting Comps?

McDonald’s Corporation MCD reported solid international comparable sales growth in the third quarter of 2025 despite continued consumer pressure and a difficult global QSR environment. Both International Operated Markets (IOM) and International Developmental Licensee (IDL) segments posted positive comps, with every IOM market contributing to growth. The results highlight the relative resilience of McDonald’s international footprint versus broader industry trends.Performance was driven by disciplined value execution and localized marketing within McDonald’s globally scaled operating model. In Germany, management reported the strongest comp performance in two years, extending a nearly four-year run of market share gains supported by consistent value platforms and focused marketing execution. In Australia, the company locked in value pricing for 12 months beginning in July 2025, a move management said provided consumer predictability in a volatile macro environment while supporting traffic and share momentum. The Taste of the World campaign in Germany exceeded expectations, reinforcing MCD’s ability to combine menu innovation with strong local relevance.Operational execution and scale efficiencies further supported international results. Management cited sourcing efficiencies, standardized execution and cost mitigation initiatives as helping to manage elevated inflation across food, labor and other inputs. While cost pressures remain above historical norms in several markets, expense growth was characterized as measured relative to revenues, helping preserve operating performance.Looking ahead, management expressed cautious confidence in the resilience of international markets. While macro uncertainty and competitive intensity persist, McDonald’s ability to generate consistent international comps through localized value strategies and operational discipline positions the segment as a stabilizing contributor to the broader business. As revenues continue to build on a controlled cost base, international markets are expected to remain a steady support to consolidated performance over time.MCD’s Stock Price Performance, Valuation & EstimatesShares of McDonald's have gained 8.4% in the past year against the industry’s fall of 1.7%. In the same time frame, other industry players like Starbucks Corporation SBUX, Sweetgreen, Inc. SG and Chipotle Mexican Grill, Inc. CMG have declined 4.9%, 75.2% and 28.7%, respectively.MCD One-Year Price PerformanceImage Source: Zacks Investment ResearchFrom a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 7.73, above the industry’s average of 3.58. Conversely, industry players, such as Starbucks, Sweetgreen and Chipotle, have P/S multiples of 2.58, 1.23 and 4.06, respectively.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for MCD’s 2026 earnings per share has increased in the past 30 days.Image Source: Zacks Investment ResearchThe company is likely to report strong earnings, with projections indicating a 10% rise in 2026. Conversely, industry players like Sweetgreen and Chipotle are likely to witness an increase of 15.5% and 4.8%, respectively, year over year, in 2026 earnings. Meanwhile, Starbucks' fiscal 2026 earnings are likely to witness a rise of 8.9% year over year.MCD stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Starbucks Corporation (SBUX): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report Sweetgreen, Inc. (SG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks