Value-packed packages redefine cost-effectiveness advantage, McDonald's (MCD.US) U.S. Q4 revenue growth hits a two-year high

McDonald’s (MCD.US) achieved its fastest U.S. sales growth in over two years in the fourth quarter, as its value meal deals continued to attract cost-conscious consumers. The earnings report showed that McDonald’s revenue for the quarter reached $7 billion, up 9.5% year-over-year, surpassing expectations by $160 million; adjusted earnings per share were $3.12, beating estimates by $0.07.

During the period, sales at existing McDonald’s restaurants in the U.S. increased 6.8% compared to the same period last year, when foot traffic was impacted by a E. coli outbreak. This growth exceeded expectations and marked the highest level since 2023. Profit margins excluding one-time items also surpassed average forecasts, and comparable sales in the company’s two international segments also beat expectations.

Regarding expansion, McDonald’s stated that the chain still aims to reach 50,000 restaurants worldwide by the end of 2027. The pace of new restaurant openings is accelerating.

In recent quarters, McDonald’s primary focus has been on re-establishing its position as an affordable dining option amid post-pandemic price surges. The fourth quarter results indicate that these efforts—including offering more budget-friendly menu items and value meals as low as $5—are paying off and helping the burger chain outperform competitors.

CEO Chris Kempczinski said in a company statement on Wednesday that a focus on affordability helped improve foot traffic in the fourth quarter. The company also noted that, thanks to successful marketing campaigns, average spending per visit by U.S. diners increased. During the quarter, McDonald’s reintroduced the popular Monopoly game and launched a Grinch-themed meal deal.

The Grinch meal deal performed particularly well, driving what the company called its highest-ever sales day. During the earnings call, Kempczinski stated that McDonald’s gained market share among low-income consumers in December. CFO Ian Borden added that the momentum from value meal deals continued into January.

According to McDonald’s Global Chief Restaurant Officer Jill McDonald, the company plans to introduce new beverages this year. After piloting a small drink concept called CosMc’s, industry observers have expected the chain to update its beverage offerings.

A pre-tax expense of $80 million (about 9 cents per share) related to restructuring costs was recorded, as McDonald’s seeks to “modernize its ways of working” under its latest strategic plan. As a measure of profitability, operating margin fell short of Wall Street expectations and declined compared to the previous quarter.

Nonetheless, the results indicate that McDonald’s is gaining market share as consumers change their spending habits due to rising costs.

Earlier this month, McDonald’s competitor Yum! Brands reported better-than-expected sales, largely driven by strong performance at Taco Bell, which is popular for its highly topical and low-priced menu items. In the fast-casual segment, Chipotle Mexican Grill Inc. reported solid performance through early 2026 until a winter storm disrupted transportation across several states. The burrito chain issued a cautious outlook for the full year.