McDonald's reported the fastest growth in comparable sales, both in the U.S. and globally, in more than two years.
McDonald's topped Wall Street estimates for fourth-quarter global comparable sales and profit on Wednesday, as meal deals and strong marketing promotions pulled in budget-strapped U.S. diners and demand held firm in Australia and Britain.
Customer traffic and sales improve at the burger giant after push on affordability.
McDonald's shares have risen only about 4% over the last year, hurt by broader concerns about the consumer and the rise of GLP-1 drugs. Buzzy promotions have helped the burger chain win over high-income consumers.
McDonald's (NYSE: MCD) and Yum!
McDonald's has doubled down on value messaging to customers with Extra Value Meals and Snack Wraps, which will likely help to boost sales this quarter. But some franchisees are standing ground in their ability to independently set prices.
McDonald's is set to release its fourth-quarter earnings on Wednesday morning, with traders anticipating the fast food giant's stock could reach new highs following the results.
McDonald's is rated Buy, with FY26 expectations largely priced in and a defensible valuation anchored in robust free cash flow generation. Revenue growth is expected to be ticket-driven, not volume-led, as lower-income consumer traffic remains pressured and promotional intensity rises. Margins are likely to hold due to the franchised model, but structural cost pressures and higher capex for 'Accelerating the Arches' limit expansion.
It's worth noting that in a week when many stocks are getting slaughtered, shares of McDonald's Corp. NYSE: MCD are up 2.7% in the five trading sessions ending Feb. 5. That has MCD stock near a 52-week high.
MCD's Q4 performance is likely to reflect gains from value meals, digital engagement and global expansion, partly offset by cost inflation and margin pressure.
Evaluate the expected performance of McDonald's (MCD) for the quarter ended December 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
McDonald's (MCD) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.