CHICAGO: McDonald’s reported fourth-quarter results that exceeded market expectations, helped by stronger U.S. sales tied to value offerings and major promotions. Global comparable sales rose 5.7% for the October to December period, with gains across each operating segment. Revenue climbed 10% to $7.009 billion, and diluted earnings per share rose 8% to $3.03 as operating income increased to $3.156 billion.
In the United States, comparable sales increased 6.8%, following gains of 2.5% in the second quarter and 2.4% in the third quarter, marking a third straight quarterly increase in 2025. The company said U.S. results were driven by positive check growth and higher guest counts, supported primarily by marketing promotions during the quarter.
McDonald’s said its value-related offerings continued to draw customers, including discounted “Extra Value Meal” promotions on some U.S. combo meals launched in September and the McValue menu introduced earlier in 2025. The company also pointed to the return of the $2.99 Snack Wraps, which came back to U.S. restaurants in July, as part of its broader value lineup during the year.
Outside the U.S., comparable sales rose 5.2% in International Operated Markets and 4.5% in International Developmental Licensed Markets. The company said nearly all International Operated Markets posted positive comparable sales, led by the U.K., Germany and Australia, while Japan led growth in the developmental and licensed segment. For the full year 2025, global comparable sales increased 3.1% and global systemwide sales rose 7% to more than $139 billion.
Value deals lift U.S. traffic
McDonald’s said seasonal promotions added to fourth-quarter momentum, including the return of its Monopoly promotion and a Grinch-themed campaign tied to the holiday period. The company said the Grinch promotion included a limited-edition sock giveaway and sold 50 million pairs of Grinch socks. Chairman and Chief Executive Officer Chris Kempczinski said, “McDonald’s value leadership is working,” as the company reported positive global comparable guest counts for the quarter.
Net income for the quarter rose 7% to $2.164 billion. McDonald’s said results included $80 million of pretax charges primarily related to restructuring tied to an internal effort it calls “Accelerating the Organization.” Excluding those charges, the company reported adjusted diluted earnings per share of $3.12 for the quarter, compared with $2.83 a year earlier on the same basis.
Dividend raised as cash flows grow
For full-year 2025, McDonald’s reported revenue of $26.885 billion, up 4%, and net income of $8.563 billion, also up 4%. Full-year diluted earnings per share was $11.95, and adjusted diluted earnings per share was $12.20 after excluding restructuring-related charges. The company reported $10.551 billion in cash provided by operations and free cash flow of $7.186 billion, after capital expenditures of $3.365 billion.
McDonald’s said it declared a 5% increase in its quarterly cash dividend to $1.86 per share. In 2025, the company paid $5.115 billion in common stock dividends and reported $2.056 billion in treasury stock purchases. McDonald’s said it operates more than 45,000 locations in more than 100 countries, and that about 95% of its restaurants are owned and operated by independent local business owners. – By Content Syndication Services.