McDonald's International Operations Emerge as a Resilience Symbol Amid Market Turbulence

McDonald’s Corporation (MCD) delivered a noteworthy performance in Q3 2025, with its international divisions functioning as a symbol of resilience against broader sector headwinds. The International Operated Markets (IOM) and International Developmental Licensee (IDL) segments both posted positive comparable sales, a meaningful achievement considering the challenging conditions affecting the global quick-service restaurant industry.

International Markets Drive Stability

Every IOM market contributed to the growth trajectory, demonstrating the strength of MCD’s geographically diversified business model. The company’s international footprint proved more robust than many competitors grappling with consumer spending constraints and inflationary pressures.

Germany showcased the strongest comparative performance in two years, capping nearly four years of consecutive market share expansion. This success stemmed from consistent value-oriented campaigns and precision marketing strategies tailored to local preferences. The Taste of the World campaign exceeded projections, illustrating how global scale can be combined with regional customization.

Meanwhile, Australia locked in value pricing through July 2026 beginning this summer, a strategic move designed to provide consumers with pricing certainty in an unpredictable macroeconomic landscape while maintaining traffic momentum and competitive positioning.

Operational Discipline Supports Financial Results

The company’s ability to manage cost pressures proved critical to sustaining margins internationally. Sourcing efficiencies, standardized operational protocols, and expense mitigation initiatives helped MCD navigate elevated input costs across food and labor categories. While inflationary headwinds remain elevated relative to historical baselines across several markets, expense growth remained proportionate to revenue expansion, protecting profitability metrics.

Stock Performance and Valuation Landscape

MCD shares appreciated 8.4% over the past twelve months, outperforming the broader industry which declined 1.7% in the same period. This contrasts sharply with select competitors—Starbucks Corporation (SBUX) fell 4.9%, Sweetgreen, Inc. (SG) dropped 75.2%, and Chipotle Mexican Grill, Inc. (CMG) declined 28.7%.

From a valuation lens, MCD commands a forward price-to-sales multiple of 7.73, significantly above the sector average of 3.58. Comparable multiples for peers stand at 2.58 for Starbucks, 1.23 for Sweetgreen, and 4.06 for Chipotle.

Earnings Trajectory and Future Outlook

Consensus estimates for MCD’s 2026 earnings per share have increased over the preceding month, with analysts projecting a 10% year-over-year expansion. This growth rate trails some peers—Sweetgreen and Chipotle are anticipated to grow earnings by 15.5% and 4.8% respectively—while Starbucks is expected to rise 8.9% year-over-year.

Management articulated measured optimism regarding international market resilience moving forward. Despite persistent macroeconomic uncertainty and competitive pressure, McDonald’s disciplined approach to localized value strategies and operational execution positions its international segment as a dependable foundation for consolidated business performance. As the company continues building revenues on a controlled expense base, international markets are expected to remain a stabilizing force supporting overall corporate results.