Shares of McDonald's Corp retreated in after-hours trading on Friday, shedding 1.4% to $327.58. The move followed a regulatory filing revealing CEO Chris Kempczinski's plan to sell 26,277 shares, valued at approximately $8.5 million, under a pre-arranged trading plan.
Strong Quarterly Results Amid Strategic Focus
The fast-food giant reported a 5.7% increase in global comparable sales for the fourth quarter, surpassing analyst expectations. U.S. same-store sales grew 6.8%, while quarterly revenue reached $7.01 billion. Adjusted earnings per share came in at $3.12. The company also raised its quarterly dividend by 5% to $1.86 per share.
Analyst Upgrade Highlights Value Strategy
Investment firm Argus upgraded McDonald's stock to a Buy rating from Hold, setting a $380 price target. Analysts cited the company's emphasis on value menus, promotional activity, and continued investment in digital initiatives and brand development as key drivers for the upgrade.
During the company's recent earnings call, Kempczinski addressed the balance between value offerings and profitability, stating the company does not permanently subsidize pricing. The CEO noted that support for franchisees' "extra value" deals is being scaled back. Analysts, including Jim Sanderson of Northcoast Research, emphasized that McDonald's must continue to "grind away with marketing and value promotions" to maintain customer traffic.
Looking ahead, McDonald's is targeting approximately 2,600 new restaurant openings worldwide in 2026 and expects its operating margin to remain in the mid-to-high 40% range. The company has set March 17 as the payment date for its increased dividend, payable to shareholders of record on March 3.
The after-hours decline brings renewed attention to the challenge facing major restaurant chains: attracting budget-conscious diners with value offerings without significantly eroding profit margins. While McDonald's has historically been viewed as a defensive stock during economic uncertainty, the market is closely watching how its strategic investments and pricing decisions will impact performance in the coming year.
