McDonald's | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 7.009 B

Revenue: As of FY2025 Q4, the actual value is USD 7.009 B, beating the estimate of USD 6.838 B.

EPS: As of FY2025 Q4, the actual value is USD 3.03, missing the estimate of USD 3.0352.

Financial Performance - Fourth Quarter 2025

Comparable Sales Global comparable sales for McDonald’s Corporation increased 5.7%. U.S. comparable sales increased 6.8%. International Operated Markets comparable sales increased 5.2%. International Developmental Licensed Markets comparable sales increased 4.5%.

Consolidated Revenues Total consolidated revenues increased 10% to $7,009 million (6% in constant currencies) from $6,388 million in 2024. Revenues from franchised restaurants were $4,311 million, a 9% increase compared to $3,958 million in the prior year. U.S. franchised revenues were $1,886 million in 2025, up 5% (5% in constant currencies) from $1,794 million in 2024. International Operated Markets franchised revenues were $1,924 million in 2025, up 13% (6% in constant currencies) from $1,706 million in 2024. International Developmental Licensed Markets & Corporate franchised revenues were $500 million in 2025, up 9% (6% in constant currencies) from $458 million in 2024. Sales by Company-owned and operated restaurants were $2,536 million, a 10% increase compared to $2,310 million in the prior year. U.S. company-owned and operated sales were $810 million in 2025, up 4% (4% in constant currencies) from $780 million in 2024. International Operated Markets company-owned and operated sales were $1,614 million in 2025, up 12% (7% in constant currencies) from $1,434 million in 2024. International Developmental Licensed Markets & Corporate company-owned and operated sales were $113 million in 2025, up 19% (4% in constant currencies) from $95 million in 2024. Other revenues were $162 million, a 35% increase compared to $120 million in the prior year (33% in constant currencies).

Operating Income Consolidated operating income increased 10% to $3,156 million (6% in constant currencies) from $2,868 million in 2024. Excluding pre-tax charges of $80 million primarily related to restructuring, consolidated operating income increased 13% (9% in constant currencies) to $3,236 million from $2,872 million in 2024.

Net Income GAAP Net income was $2,164 million, a 7% increase (4% in constant currencies) compared to $2,017 million in the prior year period. Non-GAAP Net income was $2,228 million, a 9% increase (6% in constant currencies) compared to $2,035 million in 2024.

Operating Costs and Expenses Total operating costs and expenses were $3,853 million, a 9% increase. Franchised restaurants-occupancy expenses were $678 million, a 7% increase. Company-owned and operated restaurant expenses were $2,159 million, a 9% increase. Other restaurant expenses were $140 million, a 42% increase. Depreciation and amortization were $123 million, a -9% decrease. Other selling, general & administrative expenses were $749 million, a 13% increase. Other operating (income) expense, net was $4 million, a -64% decrease, compared to $10 million in 2024.

Restaurant Margins Total Franchised margins were $3,632 million in 2025, up 9% (6% in constant currencies) from $3,324 million in 2024. Total Company-owned and operated margins were $377 million in 2025, up 13% (9% in constant currencies) from $333 million in 2024. Total restaurant margins were $4,009 million in 2025, up 10% (6% in constant currencies) from $3,657 million in 2024.

Interest Expense Interest expense increased 8% (6% in constant currencies) for the quarter.

Nonoperating (Income) Expense, Net Total Nonoperating (Income) Expense, Net was - $12 million, compared to - $49 million in 2024.

Income Taxes The effective income tax rate was 21.5% for the quarter ended 2025, compared to 20.5% in 2024.

Financial Performance - Full Year 2025

Comparable Sales Global comparable sales for McDonald’s Corporation increased 3.1% compared to -0.1% in 2024. U.S. comparable sales increased 2.1%. International Operated Markets comparable sales increased 3.2%. International Developmental Licensed Markets comparable sales increased 4.6%.

Systemwide Sales Global Systemwide sales for the full year increased 7% (5% in constant currencies) to over $139 billion, representing a growth of $9 billion ($7 billion in constant currencies). Total Company Systemwide sales increased 7% (5% in constant currencies). Total Franchised sales were $129,675 million, up 7% (6% in constant currencies) from $120,933 million in 2024.

Consolidated Revenues Total consolidated revenues increased 4% to $26,885 million (2% in constant currencies) from $25,920 million in 2024. Revenues from franchised restaurants were $16,548 million, a 5% increase compared to $15,715 million in the prior year (4% in constant currencies). U.S. franchised revenues were $7,371 million in 2025, up 2% (2% in constant currencies) from $7,211 million in 2024. International Operated Markets franchised revenues were $7,279 million in 2025, up 8% (5% in constant currencies) from $6,746 million in 2024. International Developmental Licensed Markets & Corporate franchised revenues were $1,898 million in 2025, up 8% (7% in constant currencies) from $1,758 million in 2024. Sales by Company-owned and operated restaurants were $9,690 million, a -1% decrease compared to $9,782 million in the prior year (-2% in constant currencies). U.S. company-owned and operated sales were $3,115 million in 2025, down 3% (-3% in constant currencies) from $3,197 million in 2024. International Operated Markets company-owned and operated sales were $6,131 million in 2025, up 7% (5% in constant currencies) from $5,713 million in 2024. International Developmental Licensed Markets & Corporate company-owned and operated sales were $443 million in 2025, down 49% from $872 million in 2024. Other revenues were $647 million, a 53% increase compared to $423 million in the prior year (52% in constant currencies).

Operating Income Consolidated operating income increased 6% to $12,393 million (4% in constant currencies) from $11,712 million in 2024. Excluding net pre-tax charges of $229 million primarily related to restructuring, consolidated operating income increased 5% (3% in constant currencies) to $12,621 million from $12,003 million in 2024.

Net Income GAAP Net income was $8,563 million, a 4% increase (3% in constant currencies) compared to $8,223 million in the prior year. Non-GAAP Net income was $8,741 million, a 3% increase (2% in constant currencies) compared to $8,459 million in 2024.

Operating Costs and Expenses Total operating costs and expenses were $14,492 million, a 2% increase. Franchised restaurants-occupancy expenses were $2,618 million, a 3% increase. Company-owned and operated restaurant expenses were $8,268 million, a -1% decrease. Other restaurant expenses were $564 million, a 66% increase. Depreciation and amortization were $457 million, a 2% increase. Other selling, general & administrative expenses were $2,583 million, a 7% increase. Other operating (income) expense, net was $2 million, a -98% decrease, compared to $139 million in 2024.

Restaurant Margins Total Franchised margins were $13,930 million in 2025, up 6% (4% in constant currencies) from $13,178 million in 2024. Total Company-owned and operated margins were $1,422 million in 2025, down 2% (-3% in constant currencies) from $1,447 million in 2024. Total restaurant margins were $15,351 million in 2025, up 5% (3% in constant currencies) from $14,625 million in 2024.

Selling, General & Administrative Expenses Selling, general & administrative expenses totaled $3,039 million, an increase of 6% (6% in constant currencies) from $2,858 million in 2024, primarily due to higher employee costs. These expenses were 2.2% of Systemwide sales for both 2025 and 2024.

Operating Margin The operating margin for the year was 46.1% in 2025, compared to 45.2% in 2024.

Interest Expense Interest expense increased 5% (4% in constant currencies) for the year.

Nonoperating (Income) Expense, Net Total Nonoperating (Income) Expense, Net was - $87 million, compared to - $139 million in 2024.

Income Taxes The effective income tax rate was 21.4% for the year ended 2025, compared to 20.5% in 2024.

Cash Flow - Full Year 2025

• Cash provided by operations was $10,551 million, up from $9,447 million in 2024, driven by favorable working capital movement and improved operating results.
• Capital expenditures were - $3,365 million, compared to - $2,775 million in 2024.
• Free cash flow was $7,186 million, up from $6,672 million in 2024, representing a decrease of $510 million or 8% compared to the prior year calculation.
• The free cash flow conversion rate was 84% in 2025 and 81% in 2024.
• Cash used for investing activities totaled $3.8 billion in 2025, a decrease of $1.5 billion compared with 2024.
• Cash used for financing activities totaled $7.1 billion in 2025, down slightly compared with 2024.
• The cash and equivalents balance was $774 million at year-end 2025, compared to $1,085 million at year-end 2024.

Unique Metrics

• Across 70 loyalty markets, Systemwide sales to loyalty members for the full year increased 20% to nearly $37 billion.
• 90-day active loyalty users increased 19% to nearly 210 million as of year-end.
• As of December 31, 2025, McDonald’s Corporation had 45,356 Systemwide restaurants, an increase of 1,879 from 43,477 in 2024, including 43,317 franchised restaurants and 2,039 company-owned and operated restaurants.

Outlook / Guidance

For 2026, 麦当劳 (McDonald’s Corporation) anticipates net restaurant unit expansion to contribute approximately 2.5% to Systemwide sales growth in constant currencies, with capital expenditures projected between $3.7 billion and $3.9 billion to open around 2,600 new restaurants globally. The company expects full-year Selling, General and Administrative expenses to be about 2.2% of Systemwide sales, and projects an operating margin percentage in the mid-to-high 40% range. Additionally, 麦当劳 (McDonald’s Corporation) forecasts interest expense to increase by 4% to 6%, a free cash flow conversion rate in the low-to-mid 80% range, and an effective income tax rate between 21% and 23% for 2026.