McDonald’s (MCD) Q1 2025 earnings summary

Executive summary

• Global comparable sales declined 1% year-over-year in Q1 2025, with U.S. comps down 3.6%, International Operated Markets down 1%, and International Developmental Licensed Markets up 3.5%.

• Consolidated revenues fell 3% year-over-year to $5.96 billion, with systemwide sales to loyalty members reaching $8 billion for the quarter.

• Diluted EPS was $2.60, down 2% year-over-year; adjusted EPS was $2.67, down 1%, with a $0.04 headwind from foreign currency translation.

• Value and affordability initiatives, such as the McValue platform and $5 meal deal, were expanded to address consumer pressures, with strong early responses to marketing campaigns like the Minecraft Movie Meal.

• Operational execution and customer satisfaction reached all-time highs in the U.S. and major international markets, despite ongoing macroeconomic and geopolitical headwinds.

Financial highlights

• Adjusted earnings per share for Q1 were $2.67, up 1% year-over-year in constant currencies, with a $0.04 headwind from foreign currency translation.

• Revenues: $5.96 billion, down 3% year-over-year; net income: $1.87 billion, down 3% year-over-year.

• Operating income: $2.65 billion, down 3% year-over-year, with $66 million in restructuring charges.

• Restaurant margins exceeded $3.3 billion, and adjusted operating margin was about 45.5%.

• Cash provided by operations: $2.4 billion; capital expenditures: $551 million.

Outlook and guidance

• Full-year 2025 financial targets are reaffirmed, with foreign currency translation now expected to be a $0.05 per share tailwind.

• Net restaurant unit expansion expected to contribute slightly over 2% to 2025 Systemwide sales growth, with ~2,200 new restaurant openings globally.

• 2025 operating margin expected in the mid-to-high 40% range; SG&A expenses projected at about 2.2% of Systemwide sales.

• Interest expense for 2025 expected to rise 4–6% due to higher debt balances and rates.

• Management remains cautious on consumer sentiment but expects guest count and market share to improve from Q1 lows, driven by value platforms and menu innovation.