McDonald’s on Wednesday reported quarterly earnings and revenue that topped analysts’ expectations as its value push wins back customers.
“By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores,” CEO Chris Kempczinski said in a statement.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $3.12 adjusted vs. $3.05 expected
- Revenue: $7 billion vs. $6.84 billion expected
The fast-food giant reported fourth-quarter net income of $2.16 billion, or $3.03 per share, up from $2.02 billion, or $2.80 per share, a year earlier.
Excluding restructuring charges and other items, McDonald’s earned $3.12 per share.
Net revenue climbed 10% to $7 billion.
The company’s same-store sales increased 5.7%, fueled by strong growth in its home market. Wall Street was projecting same-store sales growth of 3.9%, according to StreetAccount estimates.
U.S. same-store sales increased 6.8%. In the year-ago period, its domestic same-store sales shrank 1.4% after an E. coli outbreak weeks into the quarter weighed on traffic. McDonald’s credited buzzy promotions — like its Grinch Meal and Monopoly promotion — that boosted both traffic and sales this year.
For nearly a week, McDonald’s was the largest seller of socks in the world, thanks to the popularity of the Grinch Meal, which included the special-edition clothing item in many of its markets. Kempczinski said the company sold 50 million pairs globally in the first few days of the promotion. It was also the catalyst for McDonald’s highest-ever sales day, according to Chief Financial Officer Ian Borden.
The chain also expanded its value offerings by relaunching Extra Value Meals, which offer a roughly 15% discount on combo meals.
Outside the U.S., McDonald’s saw same-store sales growth in nearly all markets. The company’s international operated markets segment, which includes Germany and Australia, reported same-store sales growth of 5.2%. Its international developmental licensed markets division saw same-store sales rise 4.5%.
Looking to 2026, McDonald’s is “off to a strong start,” according to Borden. But executives expect weaker first-quarter same-store sales growth compared with the fourth quarter. While Extra Value Meals are drawing in diners, the winter storm that swept across the country in late January scared some away and caused temporary restaurant closures.
For the full year, McDonald’s is planning to spend between $3.7 billion and $3.9 billion on capital expenditures, according to a regulatory filing. Most of that will be spent opening approximately 2,600 new locations. The addition of 2,100 net new restaurants is expected to raise systemwide sales about 2.5%, excluding currency fluctuations.
McDonald’s plans to open about 750 restaurants in the U.S. and its international operated markets, while licensees and affiliates will open more than 1,800 restaurants in other markets.
“We believe the underlying assumptions for our 2026 outlook are prudent and reflect our expectations that the [quick-service restaurant] industry environments in the U.S. and across many markets will remain challenging,” Borden said.
The chain also has big plans for its menu in 2026.
Later this year, McDonald’s will roll out new beverages, including energy drinks, fruity refreshers and crafted sodas in the U.S. and select international markets. The new drinks are the result of lessons learned from its now-shuttered CosMc’s spinoff and a 500-restaurant test that took place last summer. Like Taco Bell and Chick-fil-A, McDonald’s is hoping that fun drinks will attract diners and lift sales.
The chain has also been leaning into chicken, which is more popular with U.S. consumers than beef. Recently, several Chicago-area locations began testing hand-breaded chicken strips, wings and grilled sandwiches. Still, the experiment is still in the early stages, Global Chief Restaurant Experience Officer Jill McDonald said on the company’s conference call.
Longer term, McDonald’s is also looking to add menu items that would interest diners who are using GLP-1 drugs, McDonald said. Plus, the chain will highlight the high protein content of its existing menu.
“We’ll be led by the customers and what they what they want from us, but there’s plenty [for] them to enjoy on our menu currently,” she said.
