01—Abstract
Summary
Summary of the 10-K filed February 24, 2026. Cited figures are marked; the original filing is the authoritative source.
McDonald's Corporation reported solid financial performance for the fiscal year ended December 31, 2025.
Total revenues increased by 4% to $26.9 billiona, with Systemwide sales growing 7% to $139.4 billion, indicating strong global demand. The company achieved a 3.1% increase in global comparable sales, driven by consistent growth in its U.S., International Operated Markets, and International Developmental Licensed Markets segments. Net income rose 4% to $8.6 billion, with diluted earnings per share reaching $11.95, up 5%.
The company's strategic "Accelerating the Arches" growth strategy, focusing on maximizing marketing, committing to core menu items, and doubling down on digital, delivery, drive-thru, and restaurant development, continues to drive performance. McDonald's is aggressively pursuing restaurant development, planning to open approximately 2,600 new restaurants in 2026, with a long-term target of 50,000 global units by the end of 2027. The company also returned $7.1 billionb to shareholders through dividends and share repurchases, underscoring a commitment to shareholder value.
02—Key points
Key Highlights
- Total revenues reached $26.9 billion, a 4% increase year-over-year.
- Systemwide sales grew 7% to $139.4 billion, reflecting strong global performance.
- Global comparable sales increased by 3.1%, with positive contributions from all major segments.
- Net income rose 4% to $8.6 billion, and diluted EPS increased 5% to $11.95.
- The company plans significant restaurant expansion, targeting approximately 2,600 new openings in 2026 and aiming for 50,000 global units by 2027.
- $7.1 billion was returned to shareholders via dividends and share repurchases.
- Operating margin improved to 46.1% from 45.2% in the prior year.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 24, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $26.89B$25.92B | +3.7% |
| SG&A Expenses | $3.04B$2.86B | +6.3% |
| Operating Expenses | $14.49B$14.21B | +2.0% |
| Operating Income | $12.39B$11.71B | +5.8% |
| Interest Expense | $1.58B$1.51B | +5.0% |
| Net Income | $8.56B$8.22B | +4.1% |
| EPS (Basic) | $12.00$11.45 | +4.8% |
| EPS (Diluted) | $11.95$11.39 | +4.9% |
| Shares Outstanding (Basic) | 713718 | −0.7% |
| Shares Outstanding (Diluted) | 716722 | −0.8% |
05—Questions
Frequently Asked Questions
What were the key drivers of McDonald's revenue growth in 2025?
Revenue growth in 2025 was primarily driven by positive sales performance in the International Operated Markets and strong franchised sales across all segments. Systemwide sales benefited from comparable sales increases and net restaurant unit expansion.
How is McDonald's executing its 'Accelerating the Arches' growth strategy?
The strategy focuses on three pillars: Maximize Marketing, Commit to the Core Menu, and Double Down on the 4 D's (Digital, Delivery, Drive-Thru, and Restaurant Development). In 2025, this included enhancing digital customer experiences, expanding delivery capabilities, optimizing drive-thrus, and accelerating restaurant development. The company is also focused on innovating its core menu, such as the 'Best Burger' initiative.
What is McDonald's outlook for new restaurant development?
McDonald's plans to open approximately 2,600 new restaurants globally in 2026, contributing to over 4.5% net new unit growth. The company aims to reach 50,000 restaurants worldwide by the end of 2027, marking the fastest period of restaurant unit growth in its history.
How did McDonald's manage its financial resources and return capital to shareholders?
McDonald's generated $10.6 billion in cash from operations and $7.2 billion in free cash flow in 2025. The company returned a total of $7.1 billion to shareholders through dividends, which were increased by 5% for the fourth quarter, and share repurchases under an authorized $15 billion program.
06—Continue