McDonald's Q3: 11% EPS Growth And A 50% Operating Margin Say The Sell-Off Was A Mistake

McDonald's delivered Q3 2026 EPS growth of 11% YoY and a 50% operating margin, despite a minor revenue miss and negative U.S. comps. Margin expansion is materializing faster than expected, driven by refranchising, cost discipline, and strong international performance, especially in Japan and Europe. MCD's valuation at 21.8x 2026 earnings and a 2.76% yield remains attractive, with an upside to $318, as Street estimates appear too low.