Key Stats for McDonald’s Stock
- Pre-market Price change for MCD stock: 1%
- $MCD Share Price as of Feb. 11: $323
- 52-Week High: $328
- $MCD Stock Price Target: $336
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What Happened?
McDonald’s (MCD) stock is up 1% in pre-market after McDonald’s reported fourth-quarter earnings and revenue that handily beat Wall Street expectations.
The fast-food giant is winning back customers with aggressive value offerings and viral marketing campaigns, such as the Grinch Meal promotion.
McDonald’s posted adjusted earnings of $3.12 per share on revenue of $7 billion, topping analyst estimates of $3.05 per share and $6.84 billion in revenue. Net income climbed to $2.16 billion from $2.02 billion a year earlier, while revenue surged 10% year-over-year.
The real standout was same-store sales growth of 5.7%, which crushed expectations of 3.9%. U.S. same-store sales jumped 6.8%, a remarkable turnaround from the 1.4% decline in the year-ago period when an E. coli outbreak hammered traffic in October 2024.
CEO Chris Kempczinski credited the company’s focus on value and buzzy marketing campaigns for the strong performance.
The Grinch Meal promotion became a cultural phenomenon, with McDonald’s selling 50 million pairs of collectible socks globally in just the first few days.
For nearly a week, McDonald’s was the largest seller of socks in the world. The promotion drove the company’s highest-ever single-day sales, according to CFO Ian Borden.
McDonald’s also relaunched Extra Value Meals in September, offering roughly 15% discounts on combo meals.
The program is working as intended, driving traffic from low-income customers and improving value perception scores. Importantly, franchisee cash flow grew year over year despite the stronger value push, suggesting the strategy is sustainable.
International markets also delivered strong results. The international operated markets segment, which includes Germany and Australia, saw same-store sales rise 5.2%.
The international development licensed markets division reported 4.5% same-store sales growth, with Japan launching a loyalty program and China opening more than 1,000 new restaurants in 2025.
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What the Market Is Telling Us About MCD Stock
The positive reaction to MCD stock suggests investors are relieved that McDonald’s value strategy is paying off without crushing margins.
The company proved it can compete aggressively on price while still growing franchisee profitability and delivering earnings growth. That’s a tough balance to strike in the current environment where consumers remain price-sensitive.
The market also appears excited about McDonald’s innovation pipeline. The company plans to roll out new beverages later in 2026, including energy drinks, fruity refreshers, and crafted sodas under the McCafé brand.
These offerings build on lessons learned from the CosMc’s spinoff test and a 500-restaurant pilot last summer that exceeded expectations. McDonald’s is betting that premium beverages can drive incremental visits across different dayparts and boost average check size.
On the chicken front, McDonald’s is testing hand-breaded chicken strips, wings, and grilled sandwiches in Chicago-area locations.
This makes strategic sense since chicken is a $200 billion global category that’s twice the size of beef and growing faster.
The company grew its chicken category share across its top 10 markets in 2025 and is targeting at least 1 percentage point of additional share gain by the end of 2026.
- Looking ahead, McDonald’s expects to open about 2,600 new restaurants in 2026, including roughly 750 in the U.S. and international operated markets.
- The company is targeting 50,000 total restaurants by the end of 2027, with new units contributing about 2.5% to systemwide sales growth this year.
However, MCD stock faces some near-term headwinds. Management expects first-quarter same-store sales growth to decelerate from the strong 6.8% posted in Q4.
Severe winter weather in late January disrupted traffic and forced temporary restaurant closures, with an estimated 100-basis-point drag on Q1 results.
Management also cautioned that the quick-service restaurant industry environment will remain challenging throughout 2026.
Still, McDonald’s appears well-positioned with a clear playbook: competitive value offerings, viral marketing campaigns, and menu innovation. If the company continues to execute this “3 for 3” strategy, MCD stock should deliver solid returns even in a tough consumer environment.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
