McDonald’s finished 2025 with strong momentum, delivering accelerated comparable sales growth in the fourth quarter and positive guest counts globally. Q4 global comparable sales increased 5.7%, with particularly strong growth in the U.S., while full-year Systemwide sales rose 7% to more than $139 billion. Management attributed the improvement to stronger value and affordability positioning, successful marketing promotions, menu innovation, and continued growth in loyalty engagement. Financial performance also strengthened, with Q4 revenue and operating income both increasing 10% and adjusted EPS rising 10%. Despite continued restructuring charges and higher operating and administrative costs, McDonald’s generated more than $10.5 billion in operating cash flow and $7.2 billion in free cash flow for the year. Overall, the company exited 2025 with improved traffic, stronger sales momentum, expanding loyalty participation, and continued confidence in its core growth strategy.

Key Financial Highlights
For Q4 2025, McDonald’s generated $7.01 billion in revenue, an increase of 10% year over year, or 6% in constant currencies. Operating income increased 10% to $3.16 billion, net income rose 7% to $2.16 billion, and diluted EPS increased 8% to $3.03. Excluding restructuring and other specified charges, adjusted EPS was $3.12, up 10%, or 7% in constant currencies.

Global comparable sales increased 5.7% in Q4, including 6.8% growth in the U.S., 5.2% in International Operated Markets, and 4.5% in International Developmental Licensed Markets. Systemwide sales increased 11% in the quarter, or 8% in constant currencies.

For the full year, revenue reached $26.89 billion, up 4%; operating income was $12.39 billion, up 6%; net income was $8.56 billion, up 4%; and diluted EPS reached $11.95, up 5%. Adjusted full-year EPS was $12.20, up 4%. Systemwide sales increased 7% to more than $139 billion.

Cash generation remained strong. Cash provided by operations increased to $10.55 billion, while free cash flow increased to $7.19 billion from $6.67 billion in 2024. Capital expenditures increased to $3.37 billion.

Strategic Initiatives and Market Performance
McDonald’s continued to emphasize value and affordability, marketing, menu innovation, digital engagement, and loyalty as core components of its strategy. Management specifically stated that its value leadership was working, pointing to improved traffic and stronger customer perceptions of value and affordability. Successful marketing promotions also helped drive positive check and guest-count growth in the U.S.

Loyalty remained a major strategic growth area. Across 70 loyalty markets, Systemwide sales to loyalty members increased 20% to nearly $37 billion for the year. The number of 90-day active loyalty users increased 19% to nearly 210 million by year-end, demonstrating continued expansion of McDonald’s digital customer ecosystem.

Regional performance was also broadly positive. U.S. comparable sales increased 6.8%, driven by both positive average check and guest counts. International Operated Markets grew 5.2%, led by the U.K., Germany, and Australia, while International Developmental Licensed Markets increased 4.5%, led by Japan.

McDonald’s also continued its Accelerating the Organization initiative, intended to modernize ways of working. The program resulted in $80 million of pre-tax restructuring charges in Q4 and $229 million for the full year.

Challenges
McDonald’s continued to face restructuring and cost pressures. The company recorded $229 million in full-year pre-tax restructuring charges related primarily to Accelerating the Organization. Q4 selling, general and administrative expenses also increased, with other SG&A rising 13% year over year.

Operating expenses increased alongside revenue growth. Q4 total operating costs and expenses rose 9%, Company-owned restaurant expenses increased 9%, and other restaurant expenses increased 42%. Interest expense also rose 8%, while the quarterly income tax provision increased 14%.

For the full year, Company-owned restaurant sales declined slightly by 1%, even as franchised restaurant revenue increased 5%. Long-term debt also increased to approximately $40.0 billion from $38.4 billion, while year-end cash declined to $774 million from $1.09 billion.

Outlook
The earnings release does not provide specific quantitative 2026 guidance for revenue, comparable sales, EPS, or margins. However, management’s commentary indicates confidence in the momentum created by stronger value positioning, improving traffic, successful marketing, loyalty expansion, and broad-based international growth. CEO Chris Kempczinski said the progress made during 2025 had strengthened the company’s strategy and positioned the system to “look forward together.”

Going forward, McDonald’s appears focused on maintaining its value leadership, deepening loyalty engagement, supporting traffic growth, and leveraging its highly franchised business model. Key areas to monitor include restructuring costs, higher SG&A and restaurant expenses, rising debt and interest costs, currency movements, and the company’s ability to sustain the strong Q4 comparable-sales and guest-count momentum into 2026. The release also notes that future operating performance remains subject to broader risks and uncertainties described in the company’s SEC filings.