McDonald's Q4 results reflected robust momentum, with management attributing performance to a strengthened value proposition, broad-based marketing campaigns, and menu innovation. CEO Chris Kempczinski highlighted that initiatives like the McValue program and the relaunch of extra value meals helped the company gain share among low-income consumers and improve value perception scores. Marketing collaborations, such as the Minecraft movie meal and the Grinch campaign, generated significant customer excitement and drove incremental sales, while product launches like Snack Wraps and McWings resonated in core markets.
Is now the time to buy MCD? Find out in our full research report (it’s free for active Edge members).
McDonald's (MCD) Q4 CY2025 Highlights:
- Revenue: $7.01 billion vs analyst estimates of $6.83 billion (9.7% year-on-year growth, 2.6% beat)
- Adjusted EPS: $3.12 vs analyst estimates of $3.05 (2.2% beat)
- Adjusted EBITDA: $3.79 billion vs analyst estimates of $3.72 billion (54.1% margin, 2.1% beat)
- Operating Margin: 45%, in line with the same quarter last year
- Locations: 45,356 at quarter end, up from 43,477 in the same quarter last year
- Same-Store Sales rose 5.7% year on year (0.4% in the same quarter last year)
- Market Capitalization: $233.3 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From McDonald's’s Q4 Earnings Call
- Dennis Geiger (UBS) asked about U.S. sales drivers for 2026. CEO Chris Kempczinski emphasized the importance of the McValue platform, strong marketing activations, and upcoming menu innovation as key levers for continued growth.
- Sara Senatore (Bank of America) questioned the impact of value versus price-pointed items on margins. Kempczinski and CFO Ian Borden explained both approaches are necessary, with sustainable margins dependent on driving higher guest counts and volume.
- Brian Harbour (Morgan Stanley) probed the rationale for increased capital spending and new store growth. Borden stated that higher capex reflects accelerated expansion and strong first-year returns in both mature and emerging markets.
- Jon Tower (Citi) inquired about the impact of GLP-1 medication adoption on menu strategy. Kempczinski and Jill McDonald noted current minimal impact, but acknowledged ongoing menu adjustments to accommodate evolving consumer preferences.
- Greg Francfort (Guggenheim) asked about loyalty program impact and technology platform integration. Borden shared that loyalty members visit more than twice as often post-enrollment, with tech stack consolidation ongoing to enable faster systemwide innovation.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) progress on the U.S. McCafé beverage rollout and its impact on incremental traffic, (2) the pace and effectiveness of new restaurant openings across key markets, and (3) further expansion and engagement in the loyalty program, especially as digital and AI-driven enhancements are deployed. Continued adaptation to shifting consumer dietary trends will also be a focus area.
McDonald's currently trades at $328.12, up from $323.21 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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