Stock Reacts Modestly
Shares edge lower after the earnings release. However, the stock trades around $325–$326 in February 2026. Its 52-week range spans $283 to $328. Additionally, analysts stay constructive. They give mostly Buy/Hold ratings. Average price targets sit at $331–$335.
Q4 2025 Highlights
McDonald’s delivers stronger Q4 results. Broad-based comparable sales growth drives this. Franchised margins rise too. Global comparable sales jump 5.7%. U.S. sales rise 6.8%. International Operated Markets gain 5.2%. International Developmental Licensed Markets advance 4.5%.
Revenues climb 10% to $7.009 billion. This beats last year’s $6.388 billion. Operating income grows 10% to $3.156 billion. Net income increases 7% to $2.164 billion. Diluted EPS reaches $3.03, up 8% from $2.80. Adjusted EPS excludes $80 million in charges. These tie to restructuring. So, adjusted EPS hits $3.12, up 10%. Systemwide sales surge 11% (8% in constant currency).
Revenue Breakdown
Franchised restaurant revenues grow 9% to $4.311 billion. Company-operated sales rise 10% to $2.536 billion. Other revenues jump 35% to $162 million. Total operating costs increase 9% to $3.853 billion. Interest expense stays at $410 million. Income tax provision totals $594 million. Weighted average diluted shares equal 714.2 million.
Full-Year 2025 Results
For FY2025, global comparable sales grow 3.1%. U.S. sales rise 2.1%. International Operated Markets gain 3.2%. International Developmental Licensed Markets advance 4.6%.
Consolidated revenues increase 4% to $26.885 billion. Operating income rises 6% to $12.393 billion. Net income grows 4% to $8.563 billion. Diluted EPS hits $11.95, up 5%. Adjusted EPS excludes $229 million in charges. Thus, it reaches $12.20. Systemwide sales climb 7% to over $139 billion.
Cash Flow and Balance Sheet
Operations provide $10.551 billion in cash. Capital expenditures total $3.365 billion. Therefore, free cash flow equals $7.186 billion. Year-end cash sits at $774 million. Total assets reach $59.515 billion. Long-term debt stands at $39.973 billion.
Loyalty and Dividends
Loyalty members drive 20% more systemwide sales to nearly $37 billion. Additionally, 90-day active users grow 19% to nearly 210 million. Finally, the company raises its quarterly dividend 5% to $1.86 per share.