McDonald's Q4 Earnings: Stagnant Revenue Growth, US Comp Sales Decline And More

Shares of fast-food chain McDonald’s Corp MCD are trading higher in premarket on Monday.

The company reported a fourth-quarter sales decline of 0.3% year-on-year to $6.388 billion, missing the analyst consensus estimate of $6.442 billion.

Global comparable sales increased 0.4%, while U.S. comparable sales slipped 1.4%.

Comparable sales for International Operated Markets segment increased 0.1% and the International Developmental Licensed Markets segment improved 4.1%.

Systemwide sales increased 2% (2% in constant currencies).

Sales by company-owned and operated restaurants dropped 7% to $2.3 billion, while sales from franchised restaurants grew 2% at $3.95 billion.

Systemwide sales to loyalty members across 60 loyalty markets were over $30 billion for the twelve-month period and approximately $8 billion for the quarter.

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90-day active loyalty users were over 175 million across 60 loyalty markets as of year-end, with growth of about 15% Y/Y.

Total operating costs and expenses decreased 2% to $3.52 billion. Operating income for the quarter climbed 2% to $2.86 billion, with an operating margin of 44.9% compared to 43.7% last year.

Adjusted EPS of $2.83 was in line with the analyst consensus estimate.

The company held $1.08 billion in cash and equivalents as of December 31, 2024. Operating cash flow for twelve months totaled $9.44 billion with a free cash flow of $6.67 billion.

“Accelerating the Arches continues to be the right strategy as we focus on growing market share,” said CEO Chris Kempczinski.

“We’re playing to win, focusing on our customers with outstanding value, exciting menu innovation and culturally relevant marketing.”

Price Action: MCD shares are trading higher by 1.46% at $298.61 in premarket at the last check Monday.

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