McDonald’s $MCD ( ▼ 1.36% ) delivered stronger than expected fourth quarter results, topping Wall Street estimates on earnings, revenue, and comparable sales growth. The company credited its performance to a renewed focus on value, including aggressive promotions and discount bundles.
Investors saw steady execution from the fast food giant, even as consumers remain price sensitive.
Sales and Profits Come in Hot
For the final quarter of 2025, McDonald’s $MCD reported adjusted earnings per share of $3.12, ahead of the $3.05 analysts expected. Revenue reached $7 billion, topping the $6.8 billion consensus forecast.
Global comparable store sales rose 5.7%, beating expectations of 3.9%. In the US, comparable sales climbed 6.8%, outpacing the 5.4% analysts had penciled in.
Promotions Drive Traffic
Management said the gains were fueled by higher guest counts and stronger average check sizes, largely tied to marketing promotions and discounted offerings. The company has leaned heavily into value messaging, including its popular $5 meal deals.
CEO Chris Kempczinski said the company’s value leadership strategy is working, signaling that consumers are responding to affordable menu options in a tight spending environment.
Steady Execution in a Competitive Market
While shares were little changed after the report, the results reinforce McDonald’s $MCD ability to defend market share through pricing and promotions. In a competitive quick service landscape, balancing value with profitability remains key.
For now, McDonald’s is showing that discounting, when executed strategically, can drive traffic without derailing earnings.