McDonald’s (MCD) Q4 2024 earnings summary

Executive summary

• 2024 performance fell short of expectations, with global comp sales down 0.1% for the year and up 0.4% in Q4, impacted by an E. coli outbreak in the U.S. that affected Quarter Pounder sales.

• Global systemwide sales exceeded $130 billion for 2024, up over $1 billion year-over-year ($2 billion in constant currencies).

• Systemwide sales to loyalty members reached $30 billion for the year, growing 30% over prior year; 90-day active loyalty users surpassed 175 million, up 15%.

• U.S. Q4 comp sales declined 1.4%, but sequential improvement was seen through December, with positive guest count growth and share gains versus competitors.

• Recovery from the food safety incident is expected by early Q2 2025, with renewed focus on value, marketing, and menu innovation.

Financial highlights

• Adjusted Q4 EPS was $2.83, down 4% year-over-year in constant currencies; full-year diluted EPS was $11.39, down 1%.

• Q4 consolidated revenues were flat at $6.39 billion; full-year consolidated revenues increased 2% to $25.92 billion.

• Full-year adjusted operating margin exceeded 46%, generating over $14.5 billion in restaurant margin dollars.

• CapEx for 2024 was just under $2.8 billion, above guidance, with over half invested in new restaurant expansion.

• Free cash flow for 2024 was $6.67 billion, down from $7.26 billion in 2023; conversion was 81%, below the 90% target.

Outlook and guidance

• 2025 operating margin targeted in the mid- to high-40% range, above 2024’s 46.3%, driven by franchise margin performance.

• Company-operated margin expected to be slightly higher than 2024’s 14.8%.

• CapEx planned at $3–$3.2 billion in 2025, with 2,200 new restaurants globally and over 4% unit growth.

• Free cash flow conversion expected in the low to mid-80% range for 2025, with a long-term target of 90%.

• Foreign currency expected to be a $0.20–$0.30 EPS headwind in 2025.