McDonald's Earnings Beat on Value Push
McDonald's earnings beat as value meals lifted traffic and systemwide sales, boosting near-term momentum and free-cash-flow outlook for investors.
KEY TAKEAWAYS
- Q4 revenue beat at $7.0 billion and adjusted EPS $3.12, each rising 10.0%.
- Value strategy drove global systemwide sales up 8.0% and lifted traffic across key markets.
- Management said the program reinforced momentum but offered no specific guidance.
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McDonald's Corp. (MCD) reported earnings on Feb. 11, 2026, that exceeded analysts' estimates after a value-focused menu boosted customer traffic and global systemwide sales. The company said this reinforced its strategy and improved the near-term outlook for shareholders.
Results and Cash Flow
McDonald's posted fourth-quarter revenue of $7.0 billion, a 10.0% increase year over year, with adjusted earnings per share rising 10.0% to $3.12. For the full year, revenue reached $26.9 billion, up 4.0% from 2024. The company generated $7.2 billion in free cash flow, calculated as $10.6 billion in operating cash flow minus $3.4 billion in capital expenditures.
Value Strategy and Outlook
The company said its value strategy lifted traffic and affordability scores, driving an 8.0% increase in global systemwide sales and comparable-sales growth in the U.S., Australia, and Britain. Chairman and Chief Executive Chris Kempczinski said, "By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores." Management described the results as reinforcing momentum behind the program but did not provide specific guidance.
Before the earnings release, some reports noted franchisee resistance to centralized pricing, which could complicate extending uniform value offers in certain markets if disagreements continue.
