McDonald’s Q4 revenue, sales beat estimates on strong US growth

Core Insights - McDonald's reported strong fourth-quarter results, with revenue and comparable sales exceeding analysts' expectations, driven by increased US traffic and the popularity of value meals [1][2] Financial Performance - Revenue for the fourth quarter rose 10% year-on-year to $7.01 billion, surpassing the forecast of $6.81 billion [1] - Earnings per share (EPS) matched estimates at $3.03, up from $2.80 a year earlier [1] - Comparable sales increased 5.7% globally, exceeding the projected 3.76%, with US comparable sales rising 6.8%, the fastest growth in over two years [2] - Operating income for the quarter grew 10% to $3.16 billion [2] Full-Year Results - McDonald's reported full-year systemwide sales of over $139 billion, with loyalty program sales totaling approximately $37 billion, a 20% increase year-on-year [3] - The number of 90-day active loyalty users reached around 210 million, a 19% increase from the previous year [3] - Adjusted EPS for the full year came in at $3.12, beating the expected $3.04 [3] - The company declared a quarterly dividend of $1.86 per share, reflecting a 5% increase [3] Strategic Insights - CEO Chris Kempczinski emphasized the effectiveness of McDonald's value leadership strategy, which has improved traffic and strengthened value and affordability scores [4] - The company experienced an 8% increase in global systemwide sales and strong comparable sales growth across all segments [4] - McDonald's stock reached an all-time high, although shares were trading flat on the morning following the announcement [4]