McDonald's Q4 Earnings Reflect Strong Sales Growth

Q4 Earnings Highlights

McDonald's reported earnings per share (EPS) of $3.12 for the fourth quarter, exceeding Wall Street's estimate of $3.04. Quarterly revenue reached $7 billion, surpassing expectations of $6.84 billion and reflecting a 10% year-over-year increase. U.S. same-store sales saw a robust growth of 6.8%, significantly outperforming projections of 5.4%. Globally, same-store sales rose 5.7%, again beating the forecasted 3.9%, with international markets contributing significantly to the performance. These results underline the company’s ability to leverage its marketing initiatives and value-driven strategies effectively in a competitive market environment.

Key Drivers of Growth

McDonald’s strong Q4 performance was fueled by the success of its value-oriented promotions, including the reintroduction of Extra Value Meals, which offered customers a 15% discount on combo offerings. Seasonal marketing campaigns, such as the Grinch-themed meal and the popular Monopoly game, significantly boosted customer traffic during the holiday period. These initiatives not only enhanced McDonald's value perception but also strengthened its positioning among both budget-conscious and premium-seeking consumers. Additionally, the company’s focus on affordability and customer engagement played a pivotal role in driving foot traffic and increasing sales volume globally.

Outlook for 2026

Looking ahead, McDonald’s has ambitious plans for expansion, with 2,100 net new restaurants expected globally by 2026. This includes 750 openings in the U.S. and international operated markets, while licensees and affiliates will contribute an additional 1,800 locations. The company anticipates these expansions to drive a 2.5% increase in systemwide sales, excluding currency impacts. Furthermore, McDonald’s aims to sustain growth through a continued emphasis on value offerings and innovation. Investments in marketing strategies and menu enhancements are expected to keep the brand competitive, while the planned capital expenditures of $3.7 billion to $3.9 billion underline its long-term commitment to growth.