Investing.com -- McDonald’s Corporation (NYSE:MCD) reported third-quarter earnings that surpassed analyst expectations, despite facing global headwinds including the ongoing conflict in the Middle East.

The fast-food giant's revenue increased YoY, driven by growth in the U.S. market, while international segments experienced declines.

Shares were marginally higher after the Tuesday market open.

McDonald's posted adjusted earnings per share of $3.23 for the quarter ended September 30, just above the analyst estimate of $3.20. Revenue rose 3% YoY (2% in constant currencies) to $6.87 billion, slightly above the consensus estimate of $6.82 billion.

Global comparable sales decreased 1.5%, with the U.S. market showing a modest 0.3% increase. The International Operated Markets segment saw a 2.1% decline, while the International Developmental Licensed Markets segment dropped 3.5%, primarily due to the impact of the war in the Middle East and negative comparable sales in China.

Commenting on the report, Bank of America analysts said the company's in-line Q3 earnings "is a product of tight expense management rather than substantial improvements in topline trends."

Moreover, the comparable sales in the US market imply that traffic/mix remains negative, though "less so than in Q2."

"International Operated Market was more disappointing as it signals that the company has not yet cracked the code on improving trends in those markets," they added.

Separately, Evercore analysts noted that the weaker July performance in the US and soft IOM comparable sales "seemed to weigh on company-restaurant profitability in 3Q," however, they highlight that the key focus area "will be the sales outlook in the US and IOM in 4Q and 2025."

The company's U.S. performance was attributed to average check growth, effective value and marketing campaigns, and continued digital and delivery growth. However, this was partly offset by slightly negative comparable guest counts.

McDonald's also announced a 6% increase in its quarterly cash dividend to $1.77 per share, demonstrating confidence in its financial position despite global challenges.

"We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending," said Chairman and CEO Chris Kempczinski.

The Q3 earnings report comes after the stock was hit by the outbreak of E. Coli linked to McDonald’s burgers. According to CDC, the outbreak has spread to 13 states and infected 75 people.