McDONALD'S REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Core Insights - McDonald's reported a 20% increase in systemwide sales to loyalty members, reaching nearly $37 billion for the full year 2025, with 90-day active loyalty users up 19% to nearly 210 million [1] - Global systemwide sales increased by 7% to over $139 billion, with a growth of $9 billion, while comparable sales for the fourth quarter rose by 5.7% [1] - The company's diluted earnings per share for the fourth quarter was $3.03, an increase of 8%, and for the full year, it was $11.95, up 5% [1] Financial Performance - Fourth quarter global comparable sales increased by 5.7%, with the U.S. market growing by 6.8%, International Operated Markets by 5.2%, and International Developmental Licensed Markets by 4.5% [1] - For the full year, global comparable sales rose by 3.1%, with the U.S. increasing by 2.1%, International Operated Markets by 3.2%, and International Developmental Licensed Markets by 4.6% [1] - Consolidated operating income for the fourth quarter increased by 6%, while for the full year, it rose by 6% as well, despite net pre-tax charges of $229 million related to restructuring [1] Revenue and Expenses - Total revenues for the fourth quarter were $7,009 million, a 10% increase from the previous year, while full-year revenues reached $26,885 million, up 4% [3] - Revenues from franchised restaurants for the fourth quarter were $4,311 million, a 9% increase, while sales from company-owned and operated restaurants were $2,536 million, a 10% increase [3] - Operating costs and expenses for the fourth quarter totaled $3,853 million, up 9% from the previous year, with significant increases in occupancy expenses and other restaurant expenses [3] Cash Flow and Investments - Cash provided by operations for the full year was $10,551 million, compared to $9,447 million in the previous year, indicating strong operational cash flow [3] - Free cash flow for the year was $7,186 million, up from $6,672 million, reflecting the company's ability to convert net profits into cash resources [3] - Capital expenditures for the year were $3,365 million, an increase from $2,775 million, indicating ongoing investment in the business [3]