MCD Q1 2025 Earnings
Reported May 1, 2025 at 3:02 AM ET · SEC Source
Q1 25 EPS
$2.67
MISS 0.02%
Est. $2.67
Q1 25 Revenue
$5.96B
MISS 2.78%
Est. $6.13B
vs S&P Since Q1 25
-35.8%
TRAILING MARKET
MCD -6.7% vs S&P +29.0%
Market Reaction
Did MCD Beat Earnings? Q1 2025 Results
McDonald's served up a disappointing first quarter, missing on both top and bottom lines as weakening consumer traffic, particularly among low- and middle-income customers, weighed heavily on results. Non-GAAP diluted EPS came in at $2.67, essentiall… Read more McDonald's served up a disappointing first quarter, missing on both top and bottom lines as weakening consumer traffic, particularly among low- and middle-income customers, weighed heavily on results. Non-GAAP diluted EPS came in at $2.67, essentially in line with the $2.67 consensus but technically a 0.02% miss, while revenue fell 3.5% year-over-year to $5.96 billion, trailing expectations of $6.13 billion by 2.78%. The U.S. Was the sharpest pain point, with comparable sales tumbling 3.6% as negative guest counts marked a stark reversal from the 2.5% growth posted in Q1 2024, a reversal that a partnership setback with a major doughnut chain also underscored the fragility of the broader QSR traffic environment. Foreign currency translation created an additional $114 million headwind. Despite the pressure, operating margin edged up to 44.5%, and the company reaffirmed its full-year outlook, projecting mid-to-high 40% operating margins and roughly 1,800 net new restaurant additions in 2025, signaling confidence in its long-term expansion despite near-term headwinds.
Key Takeaways
- • U.S. comparable sales decline of 3.6% driven by negative comparable guest counts
- • International Operated Markets comparable sales decline of 1.0%, primarily impacted by negative comparable sales in the U.K.
- • International Developmental Licensed Markets comparable sales increase of 3.5%, primarily driven by Middle East and Japan
- • Leap Day comparison in prior year negatively impacted all segments
- • Foreign currency translation negatively impacted results, primarily driven by the weakening of the Euro against the U.S. Dollar
- • Lower Franchised and Company-owned and operated margins
- • Ongoing inflationary cost pressures in U.S. and International Operated Markets
- • SG&A expenses decreased 5% due to timing of digital and technology investments and prior year convention costs
- • Higher equity in earnings in China due to improved operating performance and increased ownership in Grand Foods Holding
- • War in the Middle East continued to negatively impact Systemwide sales and revenue
- • Systemwide sales to loyalty members of approximately $8 billion for the quarter across 60 markets
MCD YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
MCD Revenue by Segment
With YoY comparisons, source: SEC Filings
MCD Revenue by Geography
Regional revenue distribution
“McDonald's has a 70-year legacy of innovation, leadership, and proven agility, all of which give us confidence in our ability to navigate even the toughest of market conditions and gain market share. Consumers today are grappling with uncertainty, but they can always count on McDonald's for both exciting new menu items and delicious favorites for exceptional value, from a brand they love.”
— Chris Kempczinski, Q1 2025 Earnings Press Release
MCD Earnings Trends
MCD vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
MCD EPS Trend
Earnings per share: estimate vs actual
MCD Revenue Trend
Quarterly revenue: estimate vs actual
MCD Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 25 BEAT FY | $3.04 | $3.12 | +2.63% | $7.01B | — |
| FY Full Year | $12.14 | $12.20 | +0.49% | $26.89B | +0.73% |
| Q3 25 MISS | $3.33 | $3.22 | -3.38% | $7.08B | -0.16% |
| Q2 25 BEAT | $3.15 | $3.19 | +1.31% | $6.84B | +2.10% |
| Q1 25 MISS | $2.67 | $2.67 | -0.02% | $5.96B | -2.78% |