MCDONALDS CORP (MCD) Earnings History

MCDONALDS CORP - Q4 FY2025 EarningsBeat

Filed at: Feb 11, 2026, 4:02 PM EST|Read from source

EXECUTIVE SUMMARY

McDonald's reported strong fourth-quarter results with accelerated global comparable sales growth driven by effective value leadership and improved traffic. Full-year performance also showed positive trends, with increased systemwide sales and operating income, reinforcing the company's strategic direction.

POSITIVE HIGHLIGHTS

  • •

    Global comparable sales increased 5.7% in Q4, accelerating from 0.4% in the prior year quarter, with positive growth across all segments.

    positive
  • •

    Consolidated revenues increased 10% in Q4 (6% in constant currencies), demonstrating strong top-line growth.

    positive
  • •

    Diluted earnings per share was $3.03 in Q4, an increase of 8% (5% in constant currencies).

    positive
  • •

    Full year global comparable sales increased 3.1%, with positive growth across all segments.

    positive
  • •

    Full year diluted earnings per share was $11.95, an increase of 5% (4% in constant currencies).

    positive
  • •

    The Company declared a 5% increase in its quarterly cash dividend to $1.86 per share.

    positive

CONCERNS & RISKS

  • •

    Full year net income increased by 4% to $8,563 million, a deceleration from the 7% increase in the fourth quarter.

    attention
  • •

    Full year operating income increased by 6% to $12,393 million, a deceleration from the 10% increase in the fourth quarter.

    attention
  • •

    Restructuring charges associated with 'Accelerating the Organization' amounted to $229 million for the full year 2025, impacting reported operating income and net income.

    attention
  • •

    Sales by Company-owned and operated restaurants decreased by 1% for the full year 2025.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$7.01B
+10.0%
Prior year: $6.39B
Annual (YTD)
$26.89B
N/A
Prior year: $25.92B
Net Income
Quarterly
$2.16B
+7.0%
Prior year: $2.02B
Annual (YTD)
$8.56B
N/A
Prior year: $8.22B
EPS (Diluted)
Quarterly
$3.03
+8.0%
Prior year: $2.80
Annual (YTD)
$11.95
N/A
Prior year: $11.39
Operating Income
Quarterly
$3.16B
N/A
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Operating Margin
Current Quarter
45.0%
Prior Year
44.9%
YoY Change
+16 bps
Net Margin
Current Quarter
30.9%
Prior Year
31.6%
YoY Change
-70 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
U.S.
0.0%
N/A
International Operated Markets
0.0%
N/A
International Developmental Licensed Markets
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
U.S.
N/A———
International Operated Markets
N/A———
International Developmental Licensed Markets
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

EARNINGS CALL —

Call date
2026-02-11
Tone
N/A
Hedge density
N/A
Deflection rate
N/A
View transcript Accession: 0000063908-26-000032

CALL GUIDANCE — Q4 FY2025 2025

MetricValuePeriodSpecificityvs Prior
gross restaurant openingsapproximately 2600FY2026——
gross restaurant openingsapproximately 2,600FY2026——
net restaurant additionsabout 4.5%FY2026——
capital expenditure spendbetween 3.7 and 3.9 billionFY2026——
operating marginmid to high 40% rangeFY2026——
GNA as a percentage of systemwide salesabout 2.2%FY2026——
interest expenseincrease between 4% to 6%FY2026——
effective tax ratebetween 21% and 23%FY2026——
EPS benefit from foreign currency20 cents to 30 centsFY2026——
net income to free cash flow conversion ratelow to mid 80% rangeFY2026——
systemwide sales growthapproximately 2.5%FY2026——
share of low-income trafficgained share in DecemberQ4 FY2025——
value and affordability scoresmeaningful increaseQ4 FY2025——
comp salesup 6.8%Q4 FY2025——
comp salesup 5.7%Q4 FY2025——
comp salesup 5.2%Q4 FY2025——
comp salesup 4.5%Q4 FY2025——
adjusted earnings per share$3.12Q4 FY2025——
adjusted earnings per share growth (constant currency)7%Q4 FY2025——
total adjusted operating margin46.9%FY2025——
capital expenditure spend3.44 billionFY2025——
gross openingsabout 2,275FY2025——
net openings1,880FY2025——
net income to free cash flow conversion rate84%FY2025——
systemwide salesnearly 140 billionFY2025——
systemwide sales growth (constant currency)5.5%FY2025——
comp sales growthmore than 3%FY2025——
comp sales growthover 5.5%Q4 FY2025——
gross restaurant openings2,275FY2025——
loyalty program active usersnearly 210 millionFY2025——
loyalty program active users250 millionend of 2027——
restaurant openings50,000end of 2027——
loyalty program active users210 million2025——
chicken category share growthat least 1 percentage pointend of 2026——
Best Burger rolloutnearly all marketsend of 2026——
US beverage lineup launchlater this yearFY2026——
comp sales progressiondecelerate sequentiallyQ1 FY2026——
weather impact on Q1 comp salesabout 100 basis pointsQ1 FY2026——
international comp sales decelerationsequentiallyQ1 FY2026——
IDL comp sales decelerationsequentiallyQ1 FY2026——
loyalty membership goal250 million 90-day active usersend of 2027——
loyalty program visit frequency increasemore than two and a half timespost-loyalty program enrollment——
capital budget increase3 to 500 million every yearFY2026——
capital expenditure spend3.4 billionFY2025——
capital expenditure increase300 to 500 millionFY2026——
traffic with lower income consumersgained share in DecemberQ4 FY2025——
traffic with upper income consumersmid single digit growthbalance of FY2026——

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Restructuring charges associated with Accelerating the Organization
Pre-tax charges
+$80M
$0.09 per share
FY 2025
Restructuring charges associated with Accelerating the Organization
Net pre-tax charges
+$229M
$0.25 per share
Q4 2024
Restructuring charges associated with Accelerating the Organization
Pre-tax charges
+$74M
$0.10 per share
FY 2024
Restructuring charges associated with Accelerating the Organization
Net pre-tax charges
+$221M
$0.25 per share
Q4 2024
Net pre-tax gains from property sale gains, transaction costs and non-cash impairment charges associated with the sale of McDonald's business in South Korea and transaction costs associated with the acquisition of McDonald's business in Israel
Net pre-tax gains
+$71M
$0.07 per share
FY 2024
Net pre-tax charges primarily consisted of property sale gains, transaction costs and non-cash impairment charges associated with the sale of McDonald's business in South Korea and transaction costs associated with the acquisition of McDonald's business in Israel
Net pre-tax charges
+$70M
$0.08 per share
Total Impact
+$745M$0.84 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

McDonald's value leadership is working, leading to improved traffic and strengthened value & affordability scores.

— MCDONALDS CORP, Q4 FY2025 2025 Earnings Call

The company achieved strong comparable sales growth across all segments in the fourth quarter.

— MCDONALDS CORP, Q4 FY2025 2025 Earnings Call

Global systemwide sales increased by 8% in constant currencies for the fourth quarter.

— MCDONALDS CORP, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Global Comparable Sales
5.7
Prior year: 0.4
%
Full Year Global Comparable Sales
3.1
%
Loyalty Users 90 Day Active Fy
210.0M
+19.0% YoY
users
International Operated Markets Comparable Sales
5.2
Prior year: 0.1
%
Full Year International Operated Markets Comparable Sales
3.2
%
Systemwide Sales Increase Fy
7
%
Loyalty Members Systemwide Sales Fy
37000.0M
+20.0% YoY
$
Full Year Us Comparable Sales
2.1
%
Full Year International Developmental Licensed Markets Comparable Sales
4.6
%
Systemwide Sales Increase Q4
11
%
Us Comparable Sales
6.8
Prior year: -1.4
%
International Developmental Licensed Markets Comparable Sales
4.5
Prior year: 4.1
%

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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