McDonald's Q4 revenue surged, with U.S. same-store sales jumping 6.8%, as low-price strategies attract "cash-strapped" consumers | Earnings Report Insights

McDonald's fourth-quarter performance exceeded expectations, as the world's largest fast-food chain successfully attracted budget-conscious consumers with its promotional strategies.

On February 11th, after the U.S. stock market closed, McDonald's announced its fourth-quarter financial report, with revenue reaching $7.01 billion, surpassing analysts' expectations of $6.83 billion; adjusted earnings per share were $3.12, also exceeding the expected $3.04.

Same-store sales grew by 5.7% year-on-year, exceeding the market expectation of 5.1%. In the U.S. market, same-store sales jumped by 6.8%, marking the fastest growth in over two years. This performance was partly benefited by a lower base formed by a decline in customer traffic due to the E. coli outbreak in the same period last year, but the more important driving force came from the company's promotional initiatives.

McDonald's CEO Chris Kempczinski noted in the company's statement that the focus on "affordability" successfully improved customer traffic in the fourth quarter. Data shows that not only did customer traffic increase in the U.S. market, but the average spending per visit also rose, thanks to "successful marketing promotions."

In this quarter, McDonald's reintroduced the popular Monopoly game and launched a package themed around "The Grinch," which helped the company set a record for the highest single-day sales ever.

Analysts believe that amid increasing economic uncertainty, American consumers are readjusting their spending priorities, with affordability becoming their primary consideration. This achievement is particularly notable against the backdrop of an overall slowdown in the fast-food industry.

After the financial report was released, McDonald's stock price initially rose by 2% in after-hours trading, before turning down by 0.24%. So far this year, McDonald's has risen nearly 6%, outperforming the S&P 500 index during the same period.

Data from market research firm Black Box Intelligence shows that the U.S. restaurant industry has experienced five consecutive months of slowing growth, with the consumer confidence index in January falling to its lowest level in over a decade. McDonald's competitors have shown mixed results, with Chipotle experiencing its first decline in same-store sales since going public in 2006, while Yum Brands announced the closure of hundreds of underperforming Pizza Hut locations.

Economic Uncertainty Reshapes American Consumer Behavior

In the fourth quarter, all three major business segments of McDonald's achieved positive comparable sales growth.

The U.S. market performed particularly well, with same-store sales soaring by 6.8%, reversing the -1.4% negative growth trend from the same period in 2024. This growth was primarily driven by successful marketing promotions, which boosted both average transaction value and customer traffic

Price affordability has become the primary concern for American consumers, as economic uncertainty is squeezing household budgets and putting pressure on the revenues of food and household goods sales companies. Kempczinski stated on Wednesday:

McDonald's value leadership is making a difference. By listening to our customers and taking action, we have increased foot traffic and enhanced our value and price competitiveness.

International operating markets recorded a 5.2% increase in comparable sales, with nearly all markets achieving positive growth, led by the UK, Germany, and Australia. International development authorized markets grew by 4.5%, with Japan leading the market, and all geographical regions achieving positive growth.

Revenue and profit also performed strongly. Consolidated revenue for the fourth quarter reached $7.009 billion, a year-on-year increase of 10% (6% growth at constant currency). Operating profit was $3.156 billion, an increase of 10%. Net profit was $2.164 billion, an increase of 7%.

Strong financial growth for the year, ample cash flow

For the full year 2025, McDonald's consolidated revenue reached $26.885 billion, a year-on-year increase of 4% (2% growth at constant currency).

Operating profit was $12.393 billion, an increase of 6% (4% growth at constant currency). Net profit was $8.563 billion, an increase of 4%, with diluted earnings per share of $11.95, an increase of 5%.

Cash flow performance was outstanding. Operating cash flow for the year reached $10.551 billion, a significant increase from $9.447 billion the previous year. After deducting $3.365 billion in capital expenditures, free cash flow reached $7.186 billion, a notable increase from $6.672 billion in 2024. Strong free cash flow provides ample support for shareholder returns and strategic investments.

It is worth noting that the 2025 financial report included $229 million in net pre-tax expenses (25 cents per share), primarily related to restructuring costs associated with the "Accelerating the Organization" internal modernization transformation.

Excluding these one-time expenses, adjusted operating profit grew by 5% (3% growth at constant currency), and adjusted earnings per share were $12.20, an increase of 4%.

Membership loyalty program: user base surges, significant contribution

McDonald's digital strategy made significant breakthroughs in 2025.

The company's membership loyalty program, operating in 70 markets worldwide, performed exceptionally well, with annual membership system sales reaching nearly $37 billion, a year-on-year increase of 20%, accounting for more than a quarter of the total system sales for the year User scale continues to expand. By the end of 2025, McDonald's will have nearly 210 million active members within 90 days, a year-on-year increase of 19%. This large and rapidly growing member base not only enhances customer loyalty but also provides the company with valuable consumption data, aiding in precise marketing and product development.

The success of the membership program reflects McDonald's effectiveness in digital transformation. Through mobile applications and personalized offers, the company can better understand customer needs, enhance user experience, and increase customer lifetime value. This strategy has become an important engine driving comparable sales growth and increased foot traffic