Value-meal strategy pays off; McDonald’s results beat expectations

(Chicago, Feb 12) — McDonald’s reported its fastest U.S. sales growth in more than two years for the latest quarter, as its value-focused offerings continued to attract cost-conscious diners. The company posted fourth-quarter revenue of $7.0 billion (about RM27.36 billion), up 9.5% year over year and $160 million above expectations. Adjusted earnings came in at $3.12 per share, beating estimates by $0.07.

U.S. comparable sales at existing restaurants rose 6.8% from a year earlier—outpacing forecasts and marking the strongest pace since 2023. McDonald’s noted that last year’s period saw traffic disrupted by an E. coli-related incident, while the latest quarter benefited from improved demand. Profit excluding one-time items also topped consensus estimates, and comparable sales in the company’s two international segments beat expectations as well.

On expansion, McDonald’s said it remains on track to reach a global goal of 50,000 restaurants by the end of 2027, with the pace of new openings accelerating.

In recent quarters, the chain’s priority has been to re-establish itself as an affordable dining option amid post-pandemic price increases. The latest results suggest those efforts—including cheaper menu items and value meals priced as low as $5—are gaining traction and helping McDonald’s outperform some rivals.

CEO Chris Kempczinski said the focus on affordability supported traffic improvements. The company added that strong marketing also lifted spending per visit in the U.S. During the quarter, McDonald’s brought back its popular Monopoly promotion and launched a Grinch-themed meal. The Grinch offering performed particularly well and drove what the company described as its highest-sales day on record. Management also said McDonald’s gained share among lower-income consumers in December, while CFO Ian Borden noted that the value-meal momentum carried into January.

McDonald’s also recorded a pre-tax charge of $80 million (around $0.09 per share) tied to restructuring as it works to “modernize ways of working” under its latest strategy. Operating margin, a key profitability measure, fell short of Wall Street expectations and declined from the prior quarter.

Even so, the report suggests McDonald’s is gaining market share as consumers adjust spending habits amid higher costs. Earlier this month, rival Yum Brands also delivered better-than-expected sales, driven largely by strong performance at Taco Bell, supported by low-priced, buzzworthy menu items.