McDONALD'S REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Rhea-AI Summary

McDonald's (NYSE:MCD) reported Q4 and full-year 2025 results: Q4 global comparable sales +5.7% and systemwide sales +11% (8% cc). Full-year systemwide sales exceeded $139 billion (+7% / 5% cc). Diluted EPS was $3.03 for Q4 and $11.95 for 2025. The company declared a 5% dividend increase to $1.86 per quarter. Results included restructuring pre-tax charges of $80M (Q4) and $229M (full year). Loyalty member systemwide sales rose 20% to nearly $37 billion, with ~210 million 90-day active users.

Positive

• Q4 global comparable sales +5.7%
• Full-year systemwide sales >$139 billion (+7%)
• Full-year diluted EPS $11.95 (+5%)
• Systemwide sales to loyalty members +20% (~$37B)
• Quarterly dividend raised 5% to $1.86

Negative

• Net pre-tax restructuring charges $80M (Q4)
• Net pre-tax restructuring charges $229M (full year)
• Consolidated revenues growth modest at 4% for 2025

Key Figures

Q4 global comparable sales: 5.7% Full-year Systemwide sales: over $139 billion (+7%) Loyalty Systemwide sales: nearly $37 billion (+20%) +5 more

8 metrics

Q4 global comparable sales 5.7% Fourth quarter 2025 global comparable sales growth

Full-year Systemwide sales over $139 billion (+7%) Full year 2025 global Systemwide sales vs prior year

Loyalty Systemwide sales nearly $37 billion (+20%) 2025 Systemwide sales to loyalty members across 70 markets

Active loyalty users nearly 210 million (+19%) 90-day active loyalty users as of year-end 2025

Q4 revenues $7,009 million (+10%) Consolidated revenues for quarter ended December 31, 2025

Full-year revenues $26,885 million (+4%) Consolidated revenues for year ended December 31, 2025

Q4 diluted EPS $3.03 (+8%) Diluted earnings per share for Q4 2025 (GAAP)

Quarterly dividend $1.86 per share (+5%) Quarterly cash dividend declared for shareholders

Market Reality Check

Price: $323.21 Vol: Volume 3,465,698 is about...

normal vol

$323.21 Last Close

Volume Volume 3,465,698 is about 10% above the 20-day average of 3,142,764, indicating slightly elevated interest into the earnings release. normal

Technical Price at $325.97 is trading above the 200-day moving average of $306.72 and sits 0.64% below the 52-week high of $328.06.

Peers on Argus

MCD showed a small gain of 0.11% while peers were mixed: YUM up 0.45%, but SBUX,...

MCD showed a small gain of 0.11% while peers were mixed: YUM up 0.45%, but SBUX, DRI, DPZ, and QSR were all down on the day, suggesting the reaction was more company-specific than sector-driven.

Previous Earnings Reports

5 past events · Latest: Nov 05 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 05	Q3 2025 earnings	Positive	+2.2%	Global comps up 3.6% and EPS growth with restructuring charges excluded.
Aug 06	Q2 2025 earnings	Positive	+3.0%	Global comps 3.8%, double-digit EPS growth and strong loyalty sales.
May 01	Q1 2025 earnings	Negative	-1.9%	Global comps down 1.0% with U.S. weakness and EPS decline.
Feb 10	Q4 2024 earnings	Positive	+4.8%	Systemwide sales above $130B and strong loyalty growth despite flat EPS.
Oct 29	Q3 2024 earnings	Negative	-0.6%	Global comps down 1.5% and slight EPS decline versus prior year.

Pattern Detected

Earnings releases have typically produced modest, directionally consistent moves, with stronger quarters (Q2–Q3 2025) seeing positive reactions and weaker or mixed quarters (Q1 2025, Q3 2024) drawing softer or negative responses.

Recent Company History

Over the last year, McDonald’s has issued 5 earnings updates covering Q1–Q4 2024 and all four quarters of 2025. These show a progression from flat to declining comps in 2024 toward renewed growth in 2025, alongside rising loyalty sales and steady EPS expansion. Market reactions were generally aligned with the tone of each release, with stronger reports (Q2 and Q3 2025) drawing the largest positive moves around 2–3%.

Historical Comparison

earnings

+1.5 %

Average Historical Move

Historical Analysis

In the past year, MCD issued 5 earnings updates with an average next-day move of 1.49%, and reactions have consistently tracked the tone of each report.

Typical Pattern

Earnings updates show a shift from mixed 2024 comps and flat EPS toward 2025 growth in comparable sales, Systemwide sales, and loyalty-driven revenue.

Market Pulse Summary

This announcement delivered Q4 comparable sales growth of 5.7%, full-year Systemwide sales above $13...

Analysis

This announcement delivered Q4 comparable sales growth of 5.7%, full-year Systemwide sales above $139 billion, and loyalty sales nearing $37 billion with almost 210 million active users. Against recent earnings history, it extends a 2025 recovery in comps and EPS after a mixed 2024. Investors may watch regional comparable sales trends, restructuring charges, and ongoing loyalty monetization for signals on the durability of this momentum.

Key Terms

comparable sales, diluted earnings per share, free cash flow

3 terms

comparable sales financial

"Global comparable sales in the fourth quarter increased 5.7%..."

"Comparable sales" are the total sales from stores or products that have been open for a certain period, usually the same time last year or last quarter. They help show whether a business is growing by comparing similar locations or products over time, much like checking if your favorite store's sales are going up compared to previous years.

diluted earnings per share financial

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

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

free cash flow financial

"Free cash flow, defined as cash provided by operations less capital expenditures"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

AI-generated analysis. Not financial advice.

• Global comparable sales in the fourth quarter increased 5.7%, with positive global comparable guest counts and strong comparable sales growth across all segments
• Global Systemwide sales* for the full year increased 7% (5% in constant currencies) to over $139 billion, or growth of $9 billion ($7 billion in constant currencies)
• Across 70 loyalty markets, Systemwide sales to loyalty members for the full year increased 20% to nearly $37 billion, with 90-day active loyalty users up 19% to nearly 210 million as of year-end

CHICAGO, Feb. 11, 2026 /PRNewswire/ -- McDonald's Corporation today announced results for the fourth quarter and year ended December 31, 2025.

"McDonald's value leadership is working," said Chairman and CEO Chris Kempczinski. "By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores. That focus helped increase global systemwide sales by 8% and delivered strong comp sales growth across all segments this quarter. The momentum we've built reinforces the progress we've made with our strategy and has earned us the right to look forward together as a system."

Fourth quarter financial performance:

• Global comparable sales increased 5.7%:
  • U.S. increased 6.8%
  • International Operated Markets increased 5.2%
  • International Developmental Licensed Markets increased 4.5%
• Consolidated revenues increased 10% (6% in constant currencies).
• Systemwide sales increased 11% (8% in constant currencies).
• Consolidated operating income increased 10% (6% in constant currencies). Results included pre-tax charges of $80 million primarily related to restructuring charges associated with Accelerating the Organization. Excluding these current year charges, as well as prior year pre-tax net charges of $3 million, consolidated operating income increased 13% (9% in constant currencies).**
• Diluted earnings per share was $3.03, an increase of 8% (5% in constant currencies). Excluding the current year charges described above of $0.09 per share, diluted earnings per share was $3.12, an increase of 10% (7% in constant currencies) when also excluding prior year charges.**
• The Company declared a 5% increase in its quarterly cash dividend to $1.86 per share.

Full year financial performance:

• Global comparable sales increased 3.1%:
  • U.S. increased 2.1%
  • International Operated Markets increased 3.2%
  • International Developmental Licensed Markets increased 4.6%
• Consolidated revenues increased 4% (2% in constant currencies).

1

• Systemwide sales increased 7% (5% in constant currencies).
• Consolidated operating income increased 6% (4% in constant currencies). Results included net pre-tax charges of $229 million primarily related to restructuring charges associated with Accelerating the Organization. Excluding these current year charges, as well as prior year net pre-tax charges of $291 million, consolidated operating income increased 5% (3% in constant currencies).**
• Diluted earnings per share was $11.95, an increase of 5% (4% in constant currencies). Excluding the current year charges described above of $0.25 per share, diluted earnings per share was $12.20, an increase of 4% (3% in constant currencies) when also excluding prior year charges.**

*Refer to page 5 for a definition of Systemwide sales.
**Refer to pages 3 and 4 for additional details on our results for the fourth quarter and full year 2025 and 2024.

2

COMPARABLE SALES

		Increase/(Decrease)
		Quarters Ended December 31,
		2025		2024
U.S.		6.8 %		(1.4) %
International Operated Markets		5.2		0.1
International Developmental Licensed Markets		4.5		4.1
Total Company		5.7 %		0.4 %

• U.S.: Comparable sales were driven by positive check and guest count growth primarily from successful marketing promotions.
• International Operated Markets: Nearly all markets reflected positive comparable sales, led by the U.K., Germany and Australia.
• International Developmental Licensed Markets: Positive comparable sales were led by Japan, with all geographic regions reflecting positive comparable sales.

KEY FINANCIAL METRICS - CONSOLIDATED
Dollars in millions, except per share data

	Quarters Ended December 31,										Years Ended December 31,
	2025		2024		Inc/ (Dec)			Inc/ (Dec) Excluding Currency Translation			2025		2024		Inc/ (Dec)			Inc/ (Dec) Excluding Currency Translation
Revenues	$     7,009		$     6,388		10	%		6	%		$    26,885		$    25,920		4	%		2	%
Operating income	3,156		2,868		10			6			12,393		11,712		6			4
Net income	2,164		2,017		7			4			8,563		8,223		4			3
Earnings per share-diluted	$       3.03		$       2.80		8	%		5	%		$      11.95		$      11.39		5	%		4	%

Results for 2025 included the following:

• Net pre-tax charges of $80 million, or $0.09 per share, for the quarter and $229 million, or $0.25 per share, for the year, primarily related to restructuring charges associated with the Company's internal effort to modernize ways of working (Accelerating the Organization)

Results for 2024 included the following:

• Pre-tax charges of $74 million, or $0.10 per share, for the quarter and $221 million, or $0.25 per share, for the year, primarily related to restructuring charges associated with Accelerating the Organization
• Net pre-tax gains of $71 million, or $0.07 per share, for the quarter and net pre-tax charges of $70 million, or $0.08 per share, for the year, which 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

Excluding the above items, operating income growth for both periods was primarily driven by higher sales-driven Franchised margins.

3

NET INCOME AND EARNINGS PER SHARE-DILUTED RECONCILIATION
Dollars in millions, except per share data

	Quarters Ended December 31,
	Net Income										Earnings per share - diluted
	2025		2024		Inc/ (Dec)			Inc/ (Dec) Excluding Currency Translation			2025		2024		Inc/ (Dec)			Inc/ (Dec) Excluding Currency Translation
GAAP	$   2,164		$   2,017		7	%		4	%		$      3.03		$      2.80		8	%		5	%
(Gains)/Charges, net of tax	64		18								0.09		0.03
Non-GAAP	$   2,228		$   2,035		9	%		6	%		$      3.12		$      2.83		10	%		7	%

 

	Years Ended December 31,
	Net Income										Earnings per share - diluted
	2025		2024		Inc/ (Dec)			Inc/ (Dec) Excluding Currency Translation			2025		2024		Inc/ (Dec)			Inc/ (Dec) Excluding Currency Translation
GAAP	$   8,563		$   8,223		4	%		3	%		$   11.95		$   11.39		5	%		4	%
(Gains)/Charges, net of tax	178		236								0.25		0.33
Non-GAAP	$   8,741		$   8,459		3	%		2	%		$   12.20		$   11.72		4	%		3	%

4

THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT THIS RELEASE

Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates. Management reviews and analyzes business results excluding the effect of foreign currency translation, impairment and other charges and gains, as well as material regulatory and other income tax impacts, and bases incentive compensation plans on these results because the Company believes this better represents underlying business trends.

Comparable sales and comparable guest counts are compared to the same period in the prior year and represent sales and transactions, respectively, at all restaurants, whether owned and operated by the Company or by franchisees, in operation at least thirteen months including those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction, natural disasters, pandemics and acts of war, terrorism or other hostilities. Comparable sales exclude the impact of currency translation and the sales of any market considered hyperinflationary (generally identified as those markets whose cumulative inflation rate over a three-year period exceeds 100%), which management believes more accurately reflects the underlying business trends. Comparable sales are driven by changes in guest counts and average check, the latter of which is affected by changes in pricing and product mix.

Systemwide sales include sales at all restaurants, whether owned and operated by the Company or by franchisees. Systemwide sales to loyalty members are comprised of all sales to customers who self-identify as a loyalty member when transacting with both Company-owned and operated and franchised restaurants. Systemwide sales to loyalty members are measured across 70 markets with loyalty programs. Systemwide sales to loyalty members represents an aggregation of the prior four quarters of sales to loyalty members active in the last 90 days of the respective quarter. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The Company's revenues consist of sales by Company-owned and operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and affiliates. Changes in Systemwide sales are primarily driven by comparable sales and net restaurant unit expansion. 

Free cash flow, defined as cash provided by operations less capital expenditures, and free cash flow conversion rate, defined as free cash flow divided by net income, are measures reviewed by management in order to evaluate the Company's ability to convert net profits into cash resources, after reinvesting in the core business, that can be used to pursue opportunities to enhance shareholder value.

RELATED COMMUNICATIONS

This press release should be read in conjunction with Exhibit 99.2 to the Company's Form 8-K filing for supplemental information related to the Company's results for the quarter and year ended December 31, 2025.

McDonald's Corporation will broadcast its investor earnings conference call live over the Internet at 3:30 p.m. (Central Time) on February 11, 2026. A link to the live webcast will be available at www.investor.mcdonalds.com. There will also be an archived webcast available for a limited time thereafter.

UPCOMING COMMUNICATIONS

For important news and information regarding McDonald's, including the timing of future investor conferences and earnings calls, visit the Investor Relations section of the Company's Internet home page at www.investor.mcdonalds.com. McDonald's uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.

ABOUT McDONALD'S

McDonald's is the world's leading global foodservice retailer with over 45,000 locations in over 100 countries. Approximately 95% of McDonald's restaurants worldwide are owned and operated by independent local business owners.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from expectations are detailed in the Company's filings with the Securities and Exchange Commission, including the risk factors discussed in Exhibit 99.2 to the Company's Form 8-K filing on February 11, 2026. The Company undertakes no obligation to update such forward-looking statements, except as may otherwise be required by law.

5

McDONALD'S CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Dollars and shares in millions, except per share data
Quarters Ended December 31,	2025		2024		Inc/ (Dec)
Revenues
Revenues from franchised restaurants	$        4,311		$        3,958		$            352		9 %
Sales by Company-owned and operated restaurants	2,536		2,310		226		10
Other revenues	162		120		42		35
TOTAL REVENUES	7,009		6,388		621		10
Operating costs and expenses
Franchised restaurants-occupancy expenses	678		635		44		7
Company-owned and operated restaurant expenses	2,159		1,977		183		9
Other restaurant expenses	140		98		41		42
Selling, general & administrative expenses
Depreciation and amortization	123		136		(13)		(9)
Other	749		664		85		13
Other operating (income) expense, net	4		10		(7)		(64)
Total operating costs and expenses	3,853		3,519		334		9
OPERATING INCOME	3,156		2,868		287		10
Interest expense	410		380		30		8
Nonoperating (income) expense, net	(12)		(49)		38		(76)
Income before provision for income taxes	2,757		2,537		220		9
Provision for income taxes	594		521		73		14
NET INCOME	$        2,164		$        2,017		$            147		7 %
EARNINGS PER SHARE-DILUTED	$           3.03		$           2.80		$           0.23		8 %
Weighted average shares outstanding-diluted	714.2		719.7		(5.5)		(1) %

6

McDONALD'S CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Dollars and shares in millions, except per share data
Years Ended December 31,	2025		2024		Inc/ (Dec)
Revenues
Revenues from franchised restaurants	$      16,548		$      15,715		$            834		5 %
Sales by Company-owned and operated restaurants	9,690		9,782		(92)		(1)
Other revenues	647		423		223		53
TOTAL REVENUES	26,885		25,920		965		4
Operating costs and expenses
Franchised restaurants-occupancy expenses	2,618		2,536		82		3
Company-owned and operated restaurant expenses	8,268		8,334		(66)		(1)
Other restaurant expenses	564		339		225		66
Selling, general & administrative expenses
Depreciation and amortization	457		447		10		2
Other	2,583		2,412		171		7
Other operating (income) expense, net	2		139		(137)		(98)
Total operating costs and expenses	14,492		14,208		285		2
OPERATING INCOME	12,393		11,712		680		6
Interest expense	1,582		1,506		76		5
Nonoperating (income) expense, net	(87)		(139)		52		(38)
Income before provision for income taxes	10,897		10,345		552		5
Provision for income taxes	2,334		2,121		213		10
NET INCOME	$        8,563		$        8,223		$            340		4 %
EARNINGS PER SHARE-DILUTED	$        11.95		$        11.39		$           0.56		5 %
Weighted average shares outstanding-diluted	716.4		721.9		(5.5)		(1) %

7

McDONALD'S CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
In millions	December 31,	2025		2024
Current assets
Cash and equivalents		$            774		$        1,085
Accounts and notes receivable		2,466		2,383
Other current assets		924		1,130
TOTAL CURRENT ASSETS		4,163		4,599
TOTAL OTHER ASSETS		12,505		11,950
LEASE RIGHT-OF-USE ASSET, NET		14,606		13,339
NET PROPERTY AND EQUIPMENT		28,241		25,295
TOTAL ASSETS		$      59,515		$      55,182
TOTAL CURRENT LIABILITIES		$        4,361		$        3,861
Long-term debt		39,973		38,424
Long-term lease liability		14,147		12,888
Other long-term liabilities		1,788		1,893
Deferred income taxes		1,038		1,914
TOTAL SHAREHOLDERS' EQUITY (DEFICIT)		(1,791)		(3,797)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)		$      59,515		$      55,182

8

McDONALD'S CORPORATION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
In millions	Years ended December 31,	2025	2024
Operating activities
Net income		$      8,563	$      8,223
Changes in working capital items		106	(437)
Other		1,882	1,660
CASH PROVIDED BY OPERATIONS		10,551	9,447
Investing activities
Capital expenditures		(3,365)	(2,775)
Sales and purchases of restaurant and other businesses and property sales		122	(2,073)
Other		(579)	(498)
CASH USED FOR INVESTING ACTIVITIES		(3,822)	(5,346)
Financing activities
Net short-term borrowings and long-term financing issuances and payments		(73)	(72)
Treasury stock purchases		(2,056)	(2,824)
Common stock dividends		(5,115)	(4,870)
Proceeds from stock option exercises and other		118	271
CASH USED FOR FINANCING ACTIVITIES		(7,125)	(7,495)
EFFECT OF EXCHANGE RATES ON CASH AND EQUIVALENTS		86	(101)
CASH AND EQUIVALENTS INCREASE (DECREASE)		(311)	(3,494)
Cash and equivalents at beginning of year		1,085	4,579
CASH AND EQUIVALENTS AT END OF YEAR		$         774	$      1,085
Supplemental cash flow disclosures
Cash provided by operations		$   10,551	$      9,447
Less: Capital expenditures		(3,365)	(2,775)
FREE CASH FLOW		$      7,186	$      6,672

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SOURCE McDonald's Corporation

FAQ

What were McDonald's (MCD) comparable sales and systemwide sales in Q4 2025?

Q4 comparable sales increased 5.7%, and systemwide sales rose 11% (8% in constant currencies). According to the company, U.S. comps were up 6.8% and all major segments posted positive comparable sales.

How did McDonald's (MCD) perform on earnings per share for full-year 2025?

Diluted earnings per share for 2025 were $11.95, a 5% increase year-over-year. According to the company, excluding current-year charges EPS was $12.20, reflecting adjusted operating results and higher franchised margins.

What restructuring costs did McDonald's (MCD) report in 2025 and Q4?

McDonald's recorded pre-tax restructuring charges of $229M for the full year and $80M in Q4. According to the company, these charges relate primarily to the Accelerating the Organization effort to modernize ways of working.

What dividend change did McDonald's (MCD) announce on February 11, 2026?

The company declared a 5% increase in its quarterly cash dividend to $1.86 per share. According to the company, the raise reflects confidence in cash generation and ongoing shareholder returns.

How meaningful is McDonald's (MCD) loyalty growth for systemwide sales in 2025?

Systemwide sales to loyalty members rose 20% to nearly $37 billion, with 90-day active loyalty users up 19% to ~210 million. According to the company, loyalty contributed significantly to sales and repeat customer traffic gains.