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, including positive comps in IDL and IOM segments.

• 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, growing 30% over prior year; 90-day active loyalty users surpassed 175 million.

• U.S. Q4 comp sales declined 1.4% due to an E. coli outbreak, but recovery is expected by early Q2 2025.

• Marketing, value initiatives, and digital engagement drove positive guest count gaps to competitors in key markets.

Financial highlights

• Adjusted Q4 EPS was $2.83, a 4% decrease 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 revenues increased 2% to $25.92 billion.

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

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

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

Outlook and guidance

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

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

• G&A as a percentage of system-wide sales projected at 2.2% for 2025, with continued investment in technology and digital.

• Free cash flow conversion expected in the low to mid-80% range for 2025, below the long-term 90% target due to peak investment years.

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