McDonald's Says the American Customer Is Still Counting Every Dollar

U.S. same-store sales slipped in the third quarter as fewer customers came through the door. The fix the company is betting on — $5 and $6 meal deals — tells you exactly what Tuesday's voters meant by "affordability."

By Clara Hughes

The day after an election decided largely on the cost of living, America's biggest restaurant chain delivered its own verdict on the household budget. McDonald's reported on Wednesday that comparable sales in the United States fell 0.2% in the third quarter, compared with a 2.4% gain a year earlier. In its earnings release, the company said negative guest counts were largely offset by growth in the average check. Put simply, fewer Americans came in, and those who did spent a bit more per visit. Globally, the picture was better. Comparable sales rose 1.5%, revenue rose 1% to $7.16 billion, and systemwide sales grew 4% to more than $38 billion. Diluted earnings per share rose 10% to $3.51. The company also raised its quarterly dividend 4% to $1.93 per share. Investors liked the profit beat: