McDonald’s reported Q4 2025 adjusted EPS of $3.12, beating estimates of $3.03, with revenues up 10% to $7.01 billion versus $6.81 billion expected. Shares dipped 0.85% in after-hours trading to $324.33 amid concerns over future growth.
About McDonald’s Corporation
McDonald’s Corporation (NYSE: MCD) operates and franchises the world’s largest quick-service restaurant chain, serving over 69 million customers daily across 45,000+ locations in 100+ countries. Founded in 1940 (corporate structure 1965) and headquartered in Chicago, Illinois, USA, it generates revenue primarily from franchised restaurants (95% of units), royalties, rents, and company-operated sales.
As of February 2026, McDonald’s boasts a market cap of approximately $233 billion, trades at a trailing P/E of 27.3x and offers a dividend yield of 2.3-2.4% with 51 years of increases and a 61% payout ratio. The company employs about 150,000 people directly, with its franchise system supporting millions more, and generated $26.9 billion in 2025 revenue.
Top Financial Highlights
- Q4 consolidated revenue increased 10% or 6% in constant currency to USD 7.01 billion, supported by 5.7% global comparable sales growth.
- Full-year revenue rose 4% or 2% in constant currency to USD 26.89 billion.
- Q4 net income reached USD 2.16 billion, up 7% year over year, while adjusted net income stood at USD 2.23 billion, reflecting 9% constant currency growth.
- Full-year net income totaled USD 8.56 billion, an increase of 4%, with adjusted net income at USD 8.74 billion, up 3% in constant currency.
- Q4 diluted EPS was USD 3.03, rising 8%, while adjusted EPS reached USD 3.12, reflecting 10% constant currency growth compared with USD 2.83.
- Full-year diluted EPS increased 5% to USD 11.95, and adjusted EPS rose 4% in constant currency to USD 12.20.
- Franchised revenue increased 9% to USD 4.31 billion, while company-operated revenue grew 10% to USD 2.54 billion. Other revenues expanded 35% to USD 162 million.
- Global comparable sales grew 5.7% in Q4, with the U.S. up 6.8%, International Operated Markets up 5.2%, and International Developmental Licensed markets up 4.5%. Full-year comparable sales increased 3.1%.
- Systemwide sales rose 11% in Q4 or 8% in constant currency, and increased 7% for the full year or 5% in constant currency, reaching USD 139 billion.
- Full-year operating cash flow reached USD 10.55 billion, compared with USD 9.45 billion in the prior year.
- Free cash flow totaled USD 7.19 billion.
- Year-end cash and equivalents stood at USD 774 million, compared with USD 1.09 billion previously, reflecting capital returns to shareholders.
- Dividends totaled USD 5.12 billion, with the quarterly dividend rising 5% to USD 1.86 per share.
- Share repurchases amounted to USD 2.06 billion during the year.
- Capital expenditures reached USD 3.37 billion.
- The company added 2,275 net new units, while loyalty programs expanded to 210 million active users, generating approximately USD 37 billion in sales.
- Strategic emphasis remains on value positioning, operational efficiency, and disciplined capital allocation.
Beat or Miss?
| Metric | Reported | Difference / Analysis |
|---|---|---|
| Q4 Revenues | $7.01B | Beat consensus estimate of $6.81B by 2.9%. |
| Q4 Adjusted EPS | $3.12 | Exceeded $3.03 estimate by 3%. |
| Full-Year Revenues | $26.89B | Surpassed prior expectations supported by comparable sales momentum. |
| Full-Year Adjusted EPS | $12.20 | Delivered solid performance despite operational headwinds. |
What Leadership Is Saying?
“McDonald’s value leadership is working. 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.” by Chris Kempczinski, Chairman and CEO.
“We grew margins in Q4, including in the U.S. on the back of that [strong top line]… value and affordability are core to McDonald’s DNA, and the company is seeing positive guest count growth.” by Ian Borden, CFO
Historical Performance
| Category | Q4 2025 | Q4 2024 | Change (%) |
|---|---|---|---|
| Revenue | $7.01B | $6.39B | +10% |
| Net Income | $2.16B | $2.02B | +7% |
| Operating Expenses | $3.85B | $3.52B | +9% |
Key Competitor
| Category | Q4 2025 | Q4 2024 | Change (%) |
|---|---|---|---|
| Revenue | $2.15B | $2.04B | +5.4% |
| Net Income | $456M | $332M | +37% |
| Operating Expenses | $1.45B | $1.38B | +5% |
How the Market Reacted?
Despite Q4 beats on EPS (+3%) and revenue (+3%), McDonald’s shares slipped 0.85% after-hours to $324, as investors weighed traffic recovery against ongoing industry pressures and muted full-year comp growth (3.1%).
The print reinforced value initiatives’ success (U.S. comps +6.8%, loyalty sales +20%), but broader macro concerns and competition tempered enthusiasm. Overall sentiment leans mildly bullish on momentum into 2026, with $233B market cap holding firm (~27x P/E).
