McDonald's Corp. (MCD) delivered a solid fourth-quarter performance that sent shares higher in after-hours trading Wednesday, proving that its emphasis on value and affordability is resonating with customers looking to stretch their dollars.
The Numbers: The fast-food giant reported earnings of $3.12 per share, comfortably ahead of the $3.04 consensus estimate. Revenue came in at $7.01 billion, beating analyst expectations of $6.84 billion and representing a healthy jump from $6.39 billion in the year-ago quarter.
What's Working: McDonald's posted some impressive metrics for the quarter. Global comparable sales rose 5.7%, driven by positive guest traffic and strong performance across every geographic segment. For the full year, global systemwide sales climbed 7% to surpass $139 billion—that's $9 billion in growth.
The company's loyalty program continues to be a major growth engine. Across 70 markets, systemwide sales to loyalty members jumped 20% for the full year to nearly $37 billion. Meanwhile, 90-day active loyalty users increased 19% to reach almost 210 million by year-end.
"McDonald's value leadership is working," CEO Chris Kempczinski said. "By listening to customers and taking action, we have improved traffic and strengthened our value and affordability scores. That focus helped increase global systemwide sales by 8% and delivered strong comp sales growth across all segments this quarter."
Stock Movement: McDonald's shares rose 0.24% to $324 in extended trading following the earnings release.
