McDonald's (MCD 2.88%), the global fast-food chain with over 44,000 restaurants in more than 100 countries, reported its second quarter earnings on August 6, 2025. The company posted $3.14 in earnings per share (GAAP) on $6.84 billion in revenue (GAAP). While EPS (non-GAAP) beat analyst expectations, GAAP revenue surpassed estimates by $145 million, or 2.2%. These results marked an improvement after a soft start to the year and signaled a turnaround from negative comparable sales in Q2 2024. The quarter showed broad-based gains in global same-store sales, but management also cited continuing pressures on some consumer groups and ongoing margin risks. Overall, the period demonstrated a clear recovery, driven by promotions, menu innovation, and digital engagement, even as cost challenges continued to surface.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Consolidated (GAAP) | $3.14 | $3.14 | $2.80 | 12 % |
| Revenue – Consolidated (GAAP) | $6.84 billion | N/A | $6.49 billion | 5.4 % |
| Operating Income | $3.23 billion | $2.92 billion | 11 % | |
| Net Income | $2.25 billion | $2.02 billion | 11 % | |
| Global Comparable Sales | 3.8 % | (1.0 %) | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Critical Success Factors
McDonald's operates a system of franchised and company-owned restaurants that primarily serve burgers, fries, chicken, and breakfast items under its globally recognized Golden Arches brand. About 95 % of its restaurants are franchise-operated. Franchisees pay ongoing fees and royalties, which adds to the company’s steady revenue and profit streams.
The company’s core focuses in recent years have been strengthening its franchise model, innovating its menu, and harnessing digital platforms for engagement and sales. It is investing in consistent brand messaging, value menu offerings, and global marketing campaigns. Menu innovation—like new chicken and beverage offerings—remains key to attracting repeat business and keeping pace with competitors.
Quarter Highlights and Notable Developments
The quarter marked a clear recovery from early 2025, with global comparable sales rising 3.8%, a sharp improvement from the 1.0% decline in Q2 2024. This growth was broad-based, with all operating segments seeing positive comparable sales. In the U.S, same-store sales climbed 2.5%, reversing the slight decline of 1.0% in Q2 2024. The International Operated Markets segment, which includes key countries like France and Germany, posted a 4.0% increase in comparable sales, while the International Developmental Licensed Markets segment, covering franchisee-led growth regions, grew 5.6%.
Much of this positive momentum was driven by targeted value offerings and successful promotions. The $5 Meal Deal and the Minecraft Movie Meal, both part of the McValue platform, drew in customers and helped McDonald’s outperform most near-end competitors on guest count change. Digital engagement surged, with systemwide sales to loyalty members hitting $9 billion and $33 billion in systemwide sales to loyalty members across 60 loyalty markets for the trailing twelve months. These efforts were key contributors to the broad sales recovery.
On the profitability side, Operating income increased 11%, bolstered by higher franchise margins, though company-owned margins saw continued pressure. Company-owned restaurant expenses were flat compared to last year (GAAP).—evidence of strict cost discipline as the company faces input cost inflation, particularly for beef in Europe. The business also recorded $43 million in pre-tax restructuring charges as part of its ongoing efficiency initiatives. Though inflation remains a factor, especially in Europe, McDonald’s executed new menu launches like McCrispy Chicken Strips and prepared for Snack Wraps and other product rollouts.
Menu innovation was a standout theme. The launch of McCrispy Chicken Strips—part of the company’s ongoing chicken platform—and plans for further innovations in beverages, including learnings from the CosMc’s standalone concept, reflected a push to compete in high-growth food and drink categories. Marketing tie-ins, such as the global Minecraft Movie campaign, exceeded internal targets and contributed to a pickup in April 2025. Despite geopolitical tensions and rising anti-American sentiment in some markets, brand metrics and customer satisfaction remained strong and steady across most major regions.
Outlook and What to Watch
Looking ahead, management reaffirmed its financial outlook for full year 2025. It expects tailwinds from foreign currency to have a small positive effect on earnings if current exchange rates hold. Margins in the U.S. are projected to be slightly higher for the full year 2025, but leadership emphasized that continued sales growth will be vital to delivering these results. Ongoing investments in value offerings and innovation remain central to the strategy, especially as lower- and middle-income U.S. consumers continue to visit less frequently, and competition for guest traffic remains intense. No major changes to forward guidance were announced.
For investors and observers, key points to monitor include the impact of sustained value menu strategies on profit margins, the role of menu innovation and marketing partnerships in maintaining customer traffic, and execution in underperforming regions, particularly the United Kingdom. Ongoing restructuring efforts may create near-term accounting charges but are designed for long-term operational efficiency. Watch for updates on beverage innovation pilots and the continued impact of digital ordering and loyalty programs on systemwide sales.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
