McDonald's Reports Strong Sales

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McDonald's on Wednesday reported quarterly earnings and revenue that topped analysts' expectations as its value push wins back customers.

"By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores," CEO Chris Kempczinski said in a statement.

Excluding restructuring charges and other items, McDonald's earned $3.12 per share.

Net revenue climbed 10% to $7 billion.

The company's same-store sales increased 5.7%, fueled by strong growth in its home market. Wall Street was projecting same-store sales growth of 3.9%, according to StreetAccount estimates.

U.S. same-store sales increased 6.8%. In the year-ago period, its domestic same-store sales shrank 1.4% after an E. coli outbreak weeks into the quarter weighed on traffic. McDonald's credited buzzy promotions — like its Grinch Meal and Monopoly promotion — that boosted both traffic and sales this year.

For nearly a week, McDonald's was the largest seller of socks in the world, thanks to the popularity of the Grinch Meal, which included the special-edition clothing item in many of its markets. Kempczinski said the company sold 50 million pairs globally in the first few days of the promotion. It was also the catalyst for McDonald's highest-ever sales day, according to Chief Financial Officer Ian Borden.

The chain also expanded its value offerings by relaunching Extra Value Meals, which offer a roughly 15% discount on combo meals.

Outside the U.S., McDonald's saw same-store sales growth in nearly all markets. The company's international operated markets segment, which includes Germany and Australia, reported same-store sales growth of 5.2%. Its international developmental licensed markets division saw same-store sales rise 4.5%.

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The chain also has big plans for its menu in 2026.

Later this year, McDonald's will roll out new beverages, including energy drinks, fruity refreshers and crafted sodas in the U.S. and select international markets. The new drinks are the result of lessons learned from its now-shuttered CosMc's spinoff and a 500-restaurant test that took place last summer. Like Taco Bell and Chick-fil-A, McDonald's is hoping that fun drinks will attract diners and lift sales.

The chain has also been leaning into chicken, which is more popular with U.S. consumers than beef. Recently, several Chicago-area locations began testing hand-breaded chicken strips, wings and grilled sandwiches. Still, the experiment is still in the early stages, Global Chief Restaurant Experience Officer Jill McDonald said on the company's conference call.

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