McDonald’s said its renewed emphasis on affordability helped pull customers back in the final months of 2025, delivering a stronger-than-expected quarter on both sales and earnings. Global comparable sales, measured at restaurants open at least a year, rose 5.7% in the October–December period, above Wall Street’s 3.9% expectation tracked by FactSet.In the United States, comparable sales increased 6.8%, supported by discounted meal bundles and menu pricing initiatives aimed at shoppers feeling pressure from everyday costs. The company cited its “Extra Value Meal” promotions and its broader McValue lineup as key drivers, alongside the return of Snack Wraps priced at $2.99.
On an earnings basis, McDonald’s reported quarterly revenue of $7.01 billion, up 10% from a year earlier and above analysts’ $6.84 billion forecast. Net income rose 7% to $2.16 billion, while adjusted earnings came in at $3.12 per share, topping expectations of roughly $3.05.
McDonald’s chief executive Chris Kempczinski said the strategy helped the brand regain ground with lower-income diners, a group the company has acknowledged had been drifting away. “McDonald’s is not going to get beat on value and affordability,” he said on an investor call.
Promotions Add Traffic And Brand Visibility
Beyond pricing, McDonald’s credited a busy marketing calendar for helping lift traffic during the quarter. The company brought back its long-running Monopoly promotion in October and rolled out a holiday-themed collaboration tied to the Grinch in December.
Executives highlighted the scale of the holiday push, noting McDonald’s sold 50 million pairs of Grinch socks within the first few days of the promotion—an attention-grabbing statistic meant to underscore how limited-time offers can generate urgency and social buzz.
The company’s approach reflects a broader pattern across quick-service restaurants, where chains have leaned heavily on value messaging, bundles, and pop-culture tie-ins to protect traffic even as many consumers remain selective about discretionary spending. McDonald’s is positioning these efforts as complementary: price promotions to reassure customers about affordability, and marketing events to create reasons to visit more often.
International Gains And A Weather-Related Slowdown Warning
McDonald’s said similar value tactics have been used outside the U.S., including in key European markets. In Germany, for example, lower-priced McSmart snacks were cited as helping support traffic. The company’s international “operated markets” segment posted comparable sales growth of 5.2% in the quarter.
Still, management cautioned that momentum may cool early in 2026, pointing to disruptions from severe winter weather. McDonald’s chief financial officer Ian Borden said the January–March period could show slower comparable-sales growth because storms can reduce customer visits and, in some cases, force restaurants to limit hours or temporarily close.
Investors are watching whether traffic gains from value bundles can be sustained without compressing margins. In a separate report, Reuters noted that the company has discussed shifting away from subsidizing some low-priced offers and that it expects ongoing cost inflation to remain a factor in 2026 performance.
Menu Innovation And Expansion Plans For 2026
Alongside discounts, McDonald’s is also leaning into product development, especially beverages, as a longer-run growth lever. The company said it is working on new drinks under its McCafe brand, including energy drinks, iced coffees, and fruity refreshers, drawing inspiration from CosMc’s, a smaller-format concept it tested.
McDonald’s beverage push comes as major chains compete for customers beyond traditional meal occasions, targeting younger consumers and afternoon “snack” visits with sweeter, more customizable drink options. Reuters also reported that McDonald’s plans to open about 2,600 restaurants globally in 2026, with capital expenditures projected at $3.7 billion to $3.9 billion, underscoring that the company is pairing near-term value messaging with continued unit growth.
For now, the company is framing the quarter as evidence that a sharper value proposition can restore traffic, while acknowledging that near-term results may still be influenced by external factors like weather and cost pressures.
