McDonald`s Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did MCD Beat Earnings? Q2 2025 Results
McDonald's posted a convincing return to form in the second quarter of 2025, reporting non-GAAP earnings of $3.19 per share against a consensus estimate of $3.1488 — a 1.31% beat — while revenue climbed 5.4% year-over-year to $6.84 billion, topping the $6.70 billion Wall Street expected by 2.10%. The headline driver was a broad-based recovery in global comparable sales, which rose 3.8% as all three operating segments posted positive comps for the first time in several quarters — the U.S. at 2.5%, International Operated Markets at 4.0%, and International Developmental Licensed Markets at 5.6%. Franchised margins led the profit story, rising 7% to $3.56 billion and accounting for roughly 90% of total restaurant margin dollars. Customers are also spending more per visit, reflecting both pricing and mix shifts. Looking ahead, management expects capital expenditures of $3.00 to $3.20 billion and nearly 1,800 net restaurant additions in 2025, signaling continued confidence even as <a href="https://247wallst.com/investing/2025/11/05/mcdonalds-pops-despite-q3-earnings-miss/">the road ahead</a> is not without its bumps.
- Global comparable sales increased 3.8% with broad-based growth across all segments
- U.S. comparable sales driven by positive check growth
- Higher sales-driven franchised margins across all segments
- Systemwide sales to loyalty members approximately $9 billion for the quarter across 60 markets
- Strengthening of most major currencies against U.S. Dollar provided positive currency translation impact
- International Operated Markets: all markets reflected positive comparable sales
- International Developmental Licensed Markets led by Japan with all geographic regions positive
- Equity in earnings of unconsolidated affiliates improved due to better China performance
“Our 6% global Systemwide sales growth this quarter is a testament to the power of compelling value, standout marketing, and menu innovation—proving again that when we stay focused on executing what matters most to our customers, we grow.”
McDonald's CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2025, McDonald's expects net restaurant unit expansion to contribute slightly over 2% to Systemwide sales growth in constant currencies. SG&A is expected at about 2.2% of Systemwide sales. Operating margin is expected in the mid-to-high 40% range. Interest expense is expected to increase about 4%, driven by higher average debt balances and higher average interest rates. The effective income tax rate is expected to be between 20% and 22%. Capital expenditures are expected between $3.0 and $3.2 billion, with the majority directed towards new restaurant unit expansion. The company expects to open approximately 2,200 restaurants globally (about 600 in U.S. and International Operated Markets, about 1,600 by developmental licensees and affiliates), with nearly 1,800 net restaurant additions. Free cash flow conversion rate is expected in the low-to-mid 80% range.
MCD YoY Financials
MCD Revenue by Segment
MCD Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.