Fast food giant McDonald’s reported quarterly earnings and revenue that topped analysts’ expectations, sending its stock to a new all-time high. The restaurant reported fourth-quarter net income of $2.16 billion, or $3.03 per share, up from $2.02 billion, or $2.80 per share, a year earlier. Excluding restructuring charges and other items, McDonald’s earned $3.12 per share. Net revenue also climbed 10% to $7 billion.
“McDonald’s value leadership is working,” CEO Chris Kempczinski said in a statement. “By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores. That focus helped increase global systemwide sales by 8% and delivered strong comp sales growth across all segments this quarter. The momentum we’ve built reinforces the progress we’ve made with our strategy and has earned us the right to look forward together as a system.”
McDonald’s (MCD) stock is now up 7.9% YTD, and over 53% since 2021. The growth isn’t expected to slow either, as CFO Ian Borden projects further growth in 2026. This year, McDonald’s is “off to a strong start,” according to Borden. McDonald’s is planning to spend between $3.7 billion and $3.9 billion on capital expenditures, according to a regulatory filing. Most of that will be spent opening approximately 2,600 new locations. The addition of 2,100 net new restaurants is expected to raise systemwide sales by about 2.5%, excluding currency fluctuations.
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Furthermore, McDonald’s (MCD) plans to open about 750 restaurants in the U.S. and its internationally operated markets. Licensees and affiliates will open more than 1,800 restaurants in other markets. “We believe the underlying assumptions for our 2026 outlook are prudent and reflect our expectations that the [quick-service restaurant] industry environments in the U.S. and across many markets will remain challenging,” Borden said.
On Wall Street, analysts remain mixed on Wall Street, with the stock having a split of buy and hold ratings. Bank of America Securities analyst Sara Senatore stuck with a Hold rating and $344 price target, suggesting a 7.18% upside. Meanwhile, J.P. Morgan analyst John Ivankoe reiterated a Buy rating and $305 price target, implying a 4.97% downside. Wells Fargo analyst Zachary Fadem kept a Buy rating and raised his price target to $355 from $345, implying a 10.61% upside.
