McDONALD'S REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

CHICAGO, Feb. 11, 2026 /PRNewswire/ -- McDonald's Corporation today announced results for the fourth quarter and year ended December 31, 2025.

"McDonald's value leadership is working," said Chairman and CEO Chris Kempczinski. "By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores. That focus helped increase global systemwide sales by 8% and delivered strong comp sales growth across all segments this quarter. The momentum we've built reinforces the progress we've made with our strategy and has earned us the right to look forward together as a system."

Fourth quarter financial performance:

Full year financial performance:

*Refer to page 5 for a definition of Systemwide sales.

**Refer to pages 3 and 4 for additional details on our results for the fourth quarter and full year 2025 and 2024.

COMPARABLE SALES

Increase/(Decrease)

Quarters Ended December 31,

2025

2024

U.S.

6.8 %

(1.4) %

International Operated Markets

5.2

0.1

International Developmental Licensed Markets

4.5

4.1

Total Company

5.7 %

0.4 %

KEY FINANCIAL METRICS - CONSOLIDATED

Dollars in millions, except per share data

Quarters Ended December 31,

Years Ended December 31,

2025

2024

Inc/ (Dec)

Excluding

Currency

Translation

2025

2024

Inc/ (Dec)

Excluding

Currency

Translation

Revenues

$ 7,009

$ 6,388

$ 26,885

$ 25,920

Operating income

3,156

2,868

12,393

11,712

Net income

2,164

2,017

8,563

8,223

Earnings per share-diluted

$ 3.03

$ 2.80

$ 11.95

$ 11.39

Results for 2025 included the following:

Results for 2024 included the following:

Excluding the above items, operating income growth for both periods was primarily driven by higher sales-driven Franchised margins.

NET INCOME AND EARNINGS PER SHARE-DILUTED RECONCILIATION

Dollars in millions, except per share data

Quarters Ended December 31,

Net Income

Earnings per share - diluted

2025

2024

Inc/ (Dec)

Excluding

Currency

Translation

2025

2024

Inc/ (Dec)

Excluding

Currency

Translation

GAAP

$ 2,164

$ 2,017

$ 3.03

$ 2.80

(Gains)/Charges, net of tax

0.09

0.03

Non-GAAP

$ 2,228

$ 2,035

$ 3.12

$ 2.83

Years Ended December 31,

Net Income

Earnings per share - diluted

2025

2024

Inc/ (Dec)

Excluding

Currency

Translation

2025

2024

Inc/ (Dec)

Excluding

Currency

Translation

GAAP

$ 8,563

$ 8,223

$ 11.95

$ 11.39

(Gains)/Charges, net of tax

178

236

0.25

0.33

Non-GAAP

$ 8,741

$ 8,459

$ 12.20

$ 11.72

THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT THIS RELEASE

Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates. Management reviews and analyzes business results excluding the effect of foreign currency translation, impairment and other charges and gains, as well as material regulatory and other income tax impacts, and bases incentive compensation plans on these results because the Company believes this better represents underlying business trends.

Comparable sales and comparable guest counts are compared to the same period in the prior year and represent sales and transactions, respectively, at all restaurants, whether owned and operated by the Company or by franchisees, in operation at least thirteen months including those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction, natural disasters, pandemics and acts of war, terrorism or other hostilities. Comparable sales exclude the impact of currency translation and the sales of any market considered hyperinflationary (generally identified as those markets whose cumulative inflation rate over a three-year period exceeds 100%), which management believes more accurately reflects the underlying business trends. Comparable sales are driven by changes in guest counts and average check, the latter of which is affected by changes in pricing and product mix.

Systemwide sales include sales at all restaurants, whether owned and operated by the Company or by franchisees. Systemwide sales to loyalty members are comprised of all sales to customers who self-identify as a loyalty member when transacting with both Company-owned and operated and franchised restaurants. Systemwide sales to loyalty members are measured across 70 markets with loyalty programs. Systemwide sales to loyalty members represents an aggregation of the prior four quarters of sales to loyalty members active in the last 90 days of the respective quarter. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The Company's revenues consist of sales by Company-owned and operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and affiliates. Changes in Systemwide sales are primarily driven by comparable sales and net restaurant unit expansion.

Free cash flow, defined as cash provided by operations less capital expenditures, and free cash flow conversion rate, defined as free cash flow divided by net income, are measures reviewed by management in order to evaluate the Company's ability to convert net profits into cash resources, after reinvesting in the core business, that can be used to pursue opportunities to enhance shareholder value.

RELATED COMMUNICATIONS

This press release should be read in conjunction with Exhibit 99.2 to the Company's Form 8-K filing for supplemental information related to the Company's results for the quarter and year ended December 31, 2025.

McDonald's Corporation will broadcast its investor earnings conference call live over the Internet at 3:30 p.m. (Central Time) on February 11, 2026. A link to the live webcast will be available at www.investor.mcdonalds.com. There will also be an archived webcast available for a limited time thereafter.

UPCOMING COMMUNICATIONS

For important news and information regarding McDonald's, including the timing of future investor conferences and earnings calls, visit the Investor Relations section of the Company's Internet home page at www.investor.mcdonalds.com. McDonald's uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.

ABOUT McDONALD'S

McDonald's is the world's leading global foodservice retailer with over 45,000 locations in over 100 countries. Approximately 95% of McDonald's restaurants worldwide are owned and operated by independent local business owners.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from expectations are detailed in the Company's filings with the Securities and Exchange Commission, including the risk factors discussed in Exhibit 99.2 to the Company's Form 8-K filing on February 11, 2026. The Company undertakes no obligation to update such forward-looking statements, except as may otherwise be required by law.

McDONALD'S CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

Dollars and shares in millions, except per share data

Quarters Ended December 31,

2025

2024

Inc/ (Dec)

Revenues

Revenues from franchised restaurants

$ 4,311

$ 3,958

$ 352

9 %

Sales by Company-owned and operated restaurants

2,536

2,310

226

Other revenues

162

120

TOTAL REVENUES

7,009

6,388

621

Operating costs and expenses

Franchised restaurants-occupancy expenses

678

635

Company-owned and operated restaurant expenses

2,159

1,977

183

Other restaurant expenses

140

Selling, general & administrative expenses

Depreciation and amortization

123

136

(13)

(9)

Other

749

664

Other operating (income) expense, net

(7)

(64)

Total operating costs and expenses

3,853

3,519

334

OPERATING INCOME

3,156

2,868

287

Interest expense

410

380

Nonoperating (income) expense, net

(12)

(49)

(76)

Income before provision for income taxes

2,757

2,537

220

Provision for income taxes

594

521

NET INCOME

$ 2,164

$ 2,017

$ 147

7 %

EARNINGS PER SHARE-DILUTED

$ 3.03

$ 2.80

$ 0.23

8 %

Weighted average shares outstanding-diluted

714.2

719.7

(5.5)

(1) %

McDONALD'S CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

Dollars and shares in millions, except per share data

Years Ended December 31,

2025

2024

Inc/ (Dec)

Revenues

Revenues from franchised restaurants

$ 16,548

$ 15,715

$ 834

5 %

Sales by Company-owned and operated restaurants

9,690

9,782

(92)

(1)

Other revenues

647

423

223

TOTAL REVENUES

26,885

25,920

965

Operating costs and expenses

Franchised restaurants-occupancy expenses

2,618

2,536

Company-owned and operated restaurant expenses

8,268

8,334

(66)

(1)

Other restaurant expenses

564

339

225

Selling, general & administrative expenses

Depreciation and amortization

457

447

Other

2,583

2,412

171

Other operating (income) expense, net

139

(137)

(98)

Total operating costs and expenses

14,492

14,208

285

OPERATING INCOME

12,393

11,712

680

Interest expense

1,582

1,506

Nonoperating (income) expense, net

(87)

(139)

(38)

Income before provision for income taxes

10,897

10,345

552

Provision for income taxes

2,334

2,121

213

NET INCOME

$ 8,563

$ 8,223

$ 340

4 %

EARNINGS PER SHARE-DILUTED

$ 11.95

$ 11.39

$ 0.56

5 %

Weighted average shares outstanding-diluted

716.4

721.9

(5.5)

(1) %

McDONALD'S CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

In millions

December 31,

2025

2024

Current assets

Cash and equivalents

$ 774

$ 1,085

Accounts and notes receivable

2,466

2,383

Other current assets

924

1,130

TOTAL CURRENT ASSETS

4,163

4,599

TOTAL OTHER ASSETS

12,505

11,950

LEASE RIGHT-OF-USE ASSET, NET

14,606

13,339

NET PROPERTY AND EQUIPMENT

28,241

25,295

TOTAL ASSETS

$ 59,515

$ 55,182

TOTAL CURRENT LIABILITIES

$ 4,361

$ 3,861

Long-term debt

39,973

38,424

Long-term lease liability

14,147

12,888

Other long-term liabilities

1,788

1,893

Deferred income taxes

1,038

1,914

TOTAL SHAREHOLDERS' EQUITY (DEFICIT)

(1,791)

(3,797)

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

$ 59,515

$ 55,182

McDONALD'S CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

In millions

Years ended December 31,

2025

2024

Operating activities

Net income

$ 8,563

$ 8,223

Changes in working capital items

106

(437)

Other

1,882

1,660

CASH PROVIDED BY OPERATIONS

10,551

9,447

Investing activities

Capital expenditures

(3,365)

(2,775)

Sales and purchases of restaurant and other businesses and property sales

122

(2,073)

Other

(579)

(498)

CASH USED FOR INVESTING ACTIVITIES

(3,822)

(5,346)

Financing activities

Net short-term borrowings and long-term financing issuances and payments

(73)

(72)

Treasury stock purchases

(2,056)

(2,824)

Common stock dividends

(5,115)

(4,870)

Proceeds from stock option exercises and other

118

271

CASH USED FOR FINANCING ACTIVITIES

(7,125)

(7,495)

EFFECT OF EXCHANGE RATES ON CASH AND EQUIVALENTS

(101)

CASH AND EQUIVALENTS INCREASE (DECREASE)

(311)

(3,494)

Cash and equivalents at beginning of year

1,085

4,579

CASH AND EQUIVALENTS AT END OF YEAR

$ 774

$ 1,085

Supplemental cash flow disclosures

Cash provided by operations

$ 10,551

$ 9,447

Less: Capital expenditures

(3,365)

(2,775)

FREE CASH FLOW

$ 7,186

$ 6,672

SOURCE McDonald's Corporation