Disney, McDonald’s sharpen their focus

Walt Disney Co. and McDonald’s may seem to have little in common beyond being members of the Fortune 500 list, but they share some similarities in their global reach and brand power.

Post pandemic, both have a sharper focus. Disney is leaning heavily on the popularity of its streaming services while McDonald’s has returned to its value roots offering new menu packages below the $10 psychological threshold.

Here are two recent updates:

Walt Disney Co. (NYSE: DIS) Recent close $118.90 All figures in US dollars

 Background: Walt Disney is a global entertainment company with annual revenues of US $91 billion known for its family-friendly programming. It also owns theme parks, resorts and cruise ships. Disney’s TV assets include ABC, FX and National Geographic. Its film studios include 20th Century Fox, Pixar, and Lucasfilm.  

Performance: The shares are up 6.6% year-to-date.

Developments & Discussion: In its third quarter reported Aug. 5 Disney’s revenue rose 2% year-over-year to $23.6 billion. Net income was $5.26 billion, roughly double that of a year ago.  A lot of the increase came from a one-time tax benefit. Earnings per share excluding the tax benefit grew 16% to $1.61.

The results indicate that its restructuring  and refocusing of its operations around streaming services is paying off. CFO Hugh Johnston credited the strong results in a large part to the  streaming unit. 

 The streaming business operating income for the quarter reached $346 million compared with a loss in the same period last year. It added 1.8 million Disney+ subscribers bringing the total to 128 million. Its Hulu service which screens popular TV shows and movies has 55 million subscribers. Disney is forecasting that Disney+ and Hulu’s subscriber count will increase by 10 million in current quarter with much of it coming from a new subscription deal with Comcast.

 Revenue and operating profit at its theme parks grew during the quarter as guests spent more on average.

Dividend: Disney raised its dividend by 33% in December to $1 per share, its third increase in 12 months. It was being paid in two installments of 50 cents per share in January and July. It yields 0.84%. Disney also has an active share buyback program.

  McDonald’s (NYSE: MCD)   Recent close $318 (All figures in US dollars.)

Background: McDonald’s is the largest and best-known fast-food franchise in the world. Almost half of the 44,000 outlets are in Asia or other emerging markets, although the US remains its largest single market.

Performance:  The shares are 10% higher year-to-date.

Recent developments: On Aug. 5 McDonald’s reported strong Q2 2025 earnings with revenue of $6.84 billion, up 5% year-over-year, and adjusted earnings per share of $3.19, beating expectations. Global same-store sales rose 3.8%, driven by meal deal bundles and digital loyalty programs.  

Its loyalty program is now active in over 60 markets and encourages repeat visits by offering personalized deals, rewards, and ordering convenience via phones.

Discussion:  McDonald’s affordable meal bundles and promotions drew in diners looking for value.  In an earnings call, Chief Executive Chris Kempczinski said many US consumers remain pressured, with lower-income customers visiting less compared with the prior-year period.

Dividend: With the December payment, McDonald’s raised its dividend for the 49^th consecutive year. The 6% increase to $1.77 quarterly ($7.04 a year) yields 2.3% at current prices.