01—Abstract
Summary
Summary of the 8-K filed February 11, 2026. Cited figures are marked; the original filing is the authoritative source.
McDonald's reported fourth quarter and full-year 2025 results on February 11, 2026, with momentum driven by its value strategy.
Q4 global comparable sales rose 5.7%, led by the U.S. at 6.8%, and consolidated revenues grew 10% (6% in constant currencies). Diluted EPS was $3.03a, up 8%, or $3.12 excluding $0.09 of restructuring charges tied to Accelerating the Organization, which represents a 10% increase on an adjusted basis. For the full year, global comparable sales rose 3.1%, revenues increased 4% and diluted EPS reached $11.95 (up 5%), or $12.20 excluding $0.25 of charges.
Growth was broad across the system. Systemwide sales grew 7% for the year to over $139 billionb, and loyalty-program sales rose 20% to nearly $37 billion across 70 markets. Operating margin was 46.1%, and free cash flow was $7.2 billion with an 84% conversion rate.
Management guided 2026 to roughly 2.5% systemwide sales growth from net unit expansion, an operating margin in the mid-to-high 40% range, capital expenditures of $3.7 to $3.9 billionc, about 2,100 net restaurant additions, and a free cash flow conversion rate in the low-to-mid 80% range. For investors, the key questions are whether the Q4 comparable sales acceleration proves durable and whether the rising cost base holds. Interest expense is guided up 4% to 6%, and SG&A is guided to about 2.2% of systemwide sales.
The company also continues to incur restructuring costs through 2027. Shareholders' equity remains negative at $(1.8) billion, reflecting the company's long-standing capital return model.
02—Key points
Key Highlights
- Q4 2025 global comparable sales rose 5.7%, with U.S. comps up 6.8%, driven by positive check and guest count growth from promotions.
- Full-year 2025 diluted EPS was $11.95 (up 5%); adjusted EPS excluding restructuring charges was $12.20 (up 4%).
- Systemwide sales grew 7% (5% constant currency) to over $139 billion; loyalty-member sales rose 20% to nearly $37 billion across 70 markets.
- Full-year free cash flow was $7.2 billion, with an 84% conversion rate, while the quarterly dividend was raised 5% to $1.86 per share.
- 2026 guidance calls for ~2.5% systemwide sales growth from unit expansion, operating margin in the mid-to-high 40% range, and capex of $3.7-3.9 billion.
- Restructuring charges under Accelerating the Organization totaled $229 million pre-tax for 2025 and will continue through 2027.
- Shareholders' equity remained negative at $(1.8) billion at year-end 2025, versus $(3.8) billion a year earlier.
03—Questions
Frequently Asked Questions
What drove McDonald's strong fourth-quarter 2025 performance?
Management attributed the Q4 result to its value and affordability push, which improved traffic. U.S. comparable sales rose 6.8% on positive check and guest count growth from successful marketing promotions, and International Operated Markets comps rose 5.2%, led by the U.K., Germany and Australia.
How did restructuring charges affect 2025 earnings?
Results included net pre-tax charges of $80 million in Q4 and $229 million for the year, primarily for restructuring under Accelerating the Organization. These reduced diluted EPS by $0.09 in Q4 and $0.25 for the full year. Management expects these charges to continue through 2027.
What is the 2026 outlook for McDonald's?
Guidance includes about 2.5% systemwide sales growth from net unit expansion in constant currencies, SG&A of about 2.2% of systemwide sales, and an operating margin in the mid-to-high 40% range. Interest expense is expected to rise 4% to 6%, the effective tax rate to be 21% to 23%, and the company plans roughly 2,100 net restaurant additions.
How strong is McDonald's cash generation and capital return?
Cash from operations was $10.6 billion and free cash flow was $7.2 billion in 2025, with an 84% conversion rate. The company returned $5.1 billion through dividends and $2.0 billion through share repurchases, and it raised its quarterly dividend 5% to $1.86 per share.
Why is McDonald's shareholders' equity negative, and does it matter?
Negative equity of $(1.8) billion reflects cumulative share repurchases and dividends that exceed retained earnings, a common feature of mature, heavily capital-returning companies. The filing does not flag it as a liquidity concern, and the company cites access to commercial paper and credit facilities as sources of short-term funding.
04—Continue