10-KPeriod: FY2025

MCDONALDS CORP Annual Report, Year Ended Dec 31, 2025

Filed February 24, 2026For Securities:MCD

Summary

McDonald's Corporation reported solid financial performance for the fiscal year ended December 31, 2025. Total revenues increased by 4% to $26.9 billion, 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 billion to shareholders through dividends and share repurchases, underscoring a commitment to shareholder value.

Financial Highlights

49 data points
Beta

Revenue

$26.89B

Net Income

$8.56B

31.9% Net Margin

EPS (Diluted)

$11.95

Total Assets

$59.52B

Cash & Equivalents

$774.00M

Free Cash Flow

$7.19B

Financial Statements
Beta
Revenue$26.89B
SG&A Expenses$3.04B
Operating Expenses$14.49B
Operating Income$12.39B
Interest Expense$1.58B
Net Income$8.56B
EPS (Basic)$12.00
EPS (Diluted)$11.95
Shares Outstanding (Basic)713
Shares Outstanding (Diluted)716

Key Highlights

  • 1Total revenues reached $26.9 billion, a 4% increase year-over-year.
  • 2Systemwide sales grew 7% to $139.4 billion, reflecting strong global performance.
  • 3Global comparable sales increased by 3.1%, with positive contributions from all major segments.
  • 4Net income rose 4% to $8.6 billion, and diluted EPS increased 5% to $11.95.
  • 5The company plans significant restaurant expansion, targeting approximately 2,600 new openings in 2026 and aiming for 50,000 global units by 2027.
  • 6$7.1 billion was returned to shareholders via dividends and share repurchases.
  • 7Operating margin improved to 46.1% from 45.2% in the prior year.

Frequently Asked Questions

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.

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.

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.

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.