Prime Highlights
- McDonald’s surpassed Wall Street expectations with strong quarterly earnings, fueled by value meals and high-performing promotions that boosted customer traffic.
- The company reported robust global same-store sales growth, with the U.S. market leading gains through successful limited-time campaigns like the Grinch Meal and Monopoly promotion.
Key Facts
- Adjusted earnings reached $3.12 per share on revenue of $7 billion, marking a 10% year-over-year revenue increase.
- Global same-store sales rose 5.7%, while U.S. same-store sales increased 6.8%, exceeding analyst projections.
Background
McDonald’s reported stronger-than-expected quarterly earnings and revenue on Wednesday, as its renewed focus on value meals and popular promotions helped bring customers back to its restaurants.
The fast-food giant posted adjusted earnings of $3.12 per share, beating Wall Street estimates of $3.05. Revenue rose 10% to $7 billion, ahead of expectations of $6.84 billion. Net income climbed to $2.16 billion, or $3.03 per share, compared with $2.02 billion a year earlier.
Global same-store sales increased 5.7%, higher than the 3.9% analysts had projected. U.S. same-store sales rose 6.8%, supported by strong demand for limited-time offers such as the Grinch Meal and the Monopoly promotion. The Grinch campaign alone led to the sale of 50 million pairs of promotional socks and marked the company’s highest-ever single sales day, executives said.
McDonald’s also relaunched its Extra Value Meals, offering about a 15% discount on combo meals. CEO Chris Kempczinski said the company improved traffic by responding to customer concerns about affordability.
International markets also reported growth, with operated markets posting a 5.2% increase in same-store sales.
Looking ahead, McDonald’s expects a slower start to the first quarter due to winter storms but remains confident about 2026. The company plans to invest up to $3.9 billion, mainly to open about 2,600 new restaurants worldwide and expand its beverage and chicken offerings.
