McDonald's Corporation reported robust fourth-quarter performance, surpassing analyst expectations as its emphasis on affordability attracted customers. Global comparable sales increased 5.7% for the period, with U.S. locations seeing a 6.8% gain.
Revenue climbed 10% to $7.01 billion, while adjusted earnings reached $3.12 per share. The company attributed the strong results to strategic value offerings, including bundled meal deals and promotional campaigns, which resonated with budget-conscious diners.
Value Focus Drives Traffic
Chairman and CEO Chris Kempczinski stated the company improved traffic and strengthened its value perception by listening to customers. Initiatives like the reintroduction of Snack Wraps at $2.99 and holiday-themed promotions, including a Grinch meal that drove record single-day sales, contributed to the uptick.
Loyalty program engagement proved significant, with systemwide sales to members approaching $37 billion in 2025 and nearly 210 million active users across 70 markets within a 90-day span.
Competitive Landscape and Outlook
The fast-food sector is increasingly competing on value, with rivals like Yum Brands' Taco Bell and KFC also reporting sales gains. McDonald's plans to open approximately 2,600 new restaurants globally in 2026, with capital expenditures projected between $3.7 billion and $3.9 billion.
Demonstrating confidence in its financial position, McDonald's raised its quarterly cash dividend by 5% to $1.86 per share. The company continues to balance value-driven traffic growth with margin preservation amid industry-wide pricing pressures.
