McDonald’s delivered a stronger-than-expected fourth quarter, signaling that its focus on value is resonating with consumers even as economic pressures persist. The fast-food giant reported earnings per share of $3.12, adjusted, exceeding analyst expectations of $3.05, and revenue of $7 billion, surpassing the anticipated $6.84 billion.
The results, announced on Wednesday, demonstrate a successful strategy shift towards affordability, a move increasingly crucial as lower-income consumers curtail spending. CEO Chris Kempczinski stated, “By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores.”
Net revenue climbed 10% year-over-year to $7 billion, and same-store sales increased by 5.7%, significantly above the 3.9% Wall Street had projected. U.S. Same-store sales saw a robust increase of 6.8%, a marked improvement from the 1.4% decline experienced in the same period last year, which was negatively impacted by an E. Coli outbreak.
A key driver of this turnaround has been the introduction of value-focused promotions. The relaunch of Extra Value Meals, offering roughly a 15% discount on combo meals, and the return of popular items like the McValue menu, have proven effective in attracting price-sensitive customers. The reintroduction of Snack Wraps at $2.99 also contributed to improved value perceptions.
McDonald’s also leveraged marketing initiatives to boost sales. The return of the Monopoly game in October and a Grinch-themed meal in December proved particularly successful. The Grinch Meal, which included a pair of special-edition socks, was a standout, selling 50 million pairs in the first few days and briefly making McDonald’s the world’s largest sock retailer. The promotion also contributed to the company’s highest-ever sales day, according to Chief Financial Officer Ian Borden.
The company’s success wasn’t limited to the U.S. International operated markets, including Germany and Australia, reported same-store sales growth of 5.2%, while international developmental licensed markets saw a rise of 4.5%.
Looking ahead to 2026, McDonald’s executives expressed cautious optimism, noting a “strong start” to the year. However, they anticipate slower same-store sales growth in the first quarter, citing the impact of a severe winter storm in late January that led to temporary restaurant closures.
Capital expenditures are planned to be between $3.7 billion and $3.9 billion for the full year, primarily allocated to expanding the restaurant network. McDonald’s intends to open approximately 2,600 new locations globally, with around 750 in the U.S. And its international operated markets, and over 1,800 through licensees and affiliates. The addition of these net new restaurants is projected to increase systemwide sales by approximately 2.5%, excluding currency fluctuations.
Despite the positive results, Borden cautioned that the company expects “challenging” industry environments in both the U.S. And many international markets. “We believe the underlying assumptions for our 2026 outlook are prudent,” he said.
Beyond value offerings, McDonald’s is also focusing on menu innovation. The company plans to introduce new beverages, including energy drinks, fruity refreshers, and crafted sodas, in the U.S. And select international markets later this year. These new drinks are informed by learnings from a 500-restaurant test related to its now-shuttered CosMc’s concept. The company is following a trend observed at competitors like Taco Bell and Chick-fil-A, hoping that appealing beverages will attract customers and boost sales.
Chicken remains a key area of focus for McDonald’s, as it continues to be more popular with U.S. Consumers than beef. Several locations in the Chicago area are currently testing hand-breaded chicken strips, wings, and grilled sandwiches, though the experiment is still in its early stages.
Longer-term, McDonald’s is also considering menu adjustments to cater to consumers using GLP-1 drugs, and will highlight the protein content of existing menu items. Global Chief Restaurant Experience Officer Jill McDonald stated the company will be “led by the customers and what they want from us,” adding that there are already numerous options available on the current menu.
