McDonald’s (NYSE: $MCD), the global fast food restaurant chain that sells burgers, fries, and more, released its Q4 fiscal 2024 earnings results on Monday, February 10, 2025, before markets opened. The stock gained slightly even after revenue came in below expectations.
McDonald’s Q4 Earnings
McDonald’s reported revenue of $6.39 billion in the fourth quarter, below estimates of $6.44 billion. Non-GAAP earnings per share came in at $2.83, with analysts’ forecasts. The company reported a net income of $2.02 billion, or $2.80, down from the $2.04 or $$.80 reported the previous year.
By segment, global comparable sales rose 0.4%, US sales declined 1.4%, and the International Operated Markets segment saw a 0.1% increase. Meanwhile, its international Developmental Licensed Markets segment reported a 4.1% increase YoY.
For the full year, revenue came in at $25.92 billion, a 2% YoY increase, while full-year net income declined 3% YoY to $8.22 billion.
Q4 Highlights
Commenting on the results, the fast-food giant said that while customer traffic had slightly increased, customer spending was slightly lower than usual.
The company took a hit on its US sales in late October 2024 when the CDC linked an E. coli outbreak to its Quarter Pounder burgers. Soon after, McDonald’s switched the supplier of its slivered onions, the ingredient pointed out as the likely origin of the outbreak. In December 2024, the CDC declared that the outbreak had been successfully contained.
MCD Market Performance
Following the mixed Q4 results, McDonald’s (MCD) gained 4.40% in early morning trading to $307.24 per share as of 9:23 AM EST. The stock is up 9.25% in the past six months and 2.43% in the past 12 months. It has underperformed the S&P 500, which is up 12.76% in the past six months and 21.63% in the past 12 months.
Analysts remain optimistic about the future of MCD, giving it an overall moderate buy rating. They forecast an average price target of $323.79, which is a 10.02% upside based on Friday’s closing price. The analysts forecast a high of $350, and low of $280 for the stock.
Should You Add McDonald’s To Your Portfolio In 2025?
McDonald’s is well past its growth phase, unlike Nvidia or Amazon. Despite this, the stock price has increased by nearly 1700% in the past 30 years. One reason for this is the company’s share buyback program. Additionally, it has a great dividend payout program for its shareholders. As such, MCD could potentially be worth adding to your portfolio for the steady dividend growth and the stability in its share price growth in the coming months.
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