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McDonald’s Serves Up Strong Q4, Proving Value is Still King
Chicago, IL – McDonald’s, the global fast-food titan, is proving that a focus on affordability can lead to big wins. The company announced impressive fourth-quarter results on Wednesday, significantly outperforming Wall Street’s expectations as its strategy to attract budget-conscious customers pays off.
Global same-store sales, a key indicator for the industry, surged by 5.7% in the October-December period, easily surpassing the 3.9% anticipated by analysts polled by FactSet. This positive trend extended to the company’s overall revenue and earnings, both of which also beat forecasts.
A significant driver behind this success appears to be McDonald’s renewed emphasis on value. In September, the Golden Arches slashed prices on some U.S. combo meals, building on earlier 2025 discounts like the popular McValue menu. The reintroduction of their beloved Snack Wraps in July for just $2.99 also played a role in enhancing customer perceptions of affordability.
These strategic price adjustments followed a period of concern for the company. McDonald’s CEO Chris Kempczinski had previously noted a decline in visits from customers with annual household incomes of $45,000 or less, acknowledging that this demographic no longer viewed McDonald’s as a good value.
Beyond price cuts, limited-time offers also spiced up traffic. The return of the Monopoly game in October and a festive Grinch-themed meal in December helped boost U.S. same-store sales by an impressive 6.8% during the fourth quarter.
This successful playbook wasn’t limited to American shores. International markets also saw positive results from similar initiatives. In Australia, for instance, McDonald’s experienced increased store traffic after locking in prices on its value items for a full year starting in July.
Financially, McDonald’s delivered strong numbers across the board. Revenue jumped 10% to $7.01 billion, outperforming Wall Street’s projection of $6.84 billion.
Net income saw a 7% increase, reaching $2.16 billion. After adjusting for one-time items, the company reported adjusted earnings of $3.12 per share, comfortably beating analysts’ forecast of $3.05 per share.
McDonald’s isn’t alone in recognizing the power of value. Other fast-food chains are also leaning into this message. Taco Bell, for example, expanded its value menu in January 2025 and reported a 7% jump in same-store sales for the October-December period, underscoring a broader industry trend towards affordability.