McDonald’s (MCD) Q4 2025 earnings summary

Executive summary

• System-wide sales reached nearly $140 billion in 2025, up 5.5% in constant currency year-over-year, with strong comparable sales growth across all segments and accelerated new restaurant openings.

• Global comparable sales rose 5.7% in Q4 2025, with all segments showing growth and positive guest counts.

• Full-year global comparable sales increased 3.1%, with systemwide sales up 7% to over $139 billion.

• Opened 2,275 restaurants in 2025, targeting 2,600 gross openings in 2026, aiming for 50,000 restaurants by end of 2027.

• Loyalty program reached 210 million ninety-day active users across 70 markets, nearly doubling sales to loyalty members since 2023.

Financial highlights

• Q4 consolidated revenues grew 10% year-over-year to $7.0 billion; full-year revenues up 4% to $26.9 billion.

• Q4 net income increased 7% to $2.16 billion; full-year net income up 4% to $8.56 billion.

• Adjusted EPS for Q4 was $3.12, including a $0.10 FX benefit; constant currency adjusted EPS up 7% year-over-year.

• Adjusted operating margin for 2025 was 46.9%; total restaurant margin dollars exceeded $15 billion.

• Capital expenditures were $3.4 billion in 2025, above guidance, to support future development.

Outlook and guidance

• 2026 system-wide sales growth expected to benefit from net restaurant expansion, contributing about 2.5%.

• Operating margin expected to expand to mid- to high-40% range; G&A targeted at 2.2% of system-wide sales.

• Interest expense projected to rise 4%-6%; effective tax rate expected between 21%-23%.

• CapEx for 2026 guided at $3.7-$3.9 billion, mainly for new unit openings.

• Net income to free cash flow conversion rate targeted in low- to mid-80% range.