McDonald’s (MCD) Q2 2025 earnings summary

Executive summary

• Global comparable sales rose 3.8% for the quarter, with systemwide sales up over 6% in constant currency and positive guest count growth across all geographies.

• Consolidated revenues increased 5% year-over-year, driven by strong international performance and value platforms.

• U.S. comparable sales increased 2.5%, outperforming competitors, though QSR traffic remains challenged, especially among low-income consumers.

• Technology investments, digital engagement, and menu innovation contributed to enhanced customer and crew experiences.

• The company continues to execute its Accelerating the Arches strategy, focusing on digital, delivery, drive-thru, and restaurant development.

Financial highlights

• Adjusted EPS for the quarter was $3.19, up 7% year-over-year; diluted EPS grew 12% to $3.14.

• Net income for the quarter was $2.25 billion, up 11% year-over-year.

• Operating income increased 11% to $3.23 billion for the quarter.

• Systemwide sales rose 8% for the quarter, with international markets leading growth.

• Free cash flow for the six months was $3.1 billion, with cash provided by operations at $4.4 billion.

Outlook and guidance

• Full-year adjusted operating margin targeted in the mid to high 40% range, above 2024's 46.3%.

• Company-operated restaurant margin target adjusted to around 14.8% for the year.

• G&A as a percentage of systemwide sales expected to be about 2.2% for the full year.

• Capital expenditures for 2025 are forecast at $3.0–$3.2 billion, with about 2,200 new restaurants planned globally.

• Effective tax rate expected at 20%-22%, with a $0.15 EPS tailwind from FX.