McDonald’s Corporation (MCD) rallied on Wednesday after recording its best quarter of the year. Global comparable sales rose 5.7% in Q4 and were up 6.8% in the U.S. Notably, the restaurant chain added market share during the quarter without seeing a decline in operating income.
CEO Chris Kempczinski pointed to the market share improvement with lower-income consumers in December as its value menu offerings resonated. He noted that the chain is committed to not being beat on value and affordability. It was also noted that the Minecraft promotion and demand for Grinch collectibles both drove traffic. The U.S. comparable sales tally was said to be boosted by marketing initiatives, including the Monopoly event and the Grinch meal.
The Big Arch was noted to be a strong menu offering in select markets where it is being tested. McDonald’s (MCD) plans to keep adding new beverage options after seeing strong results.
On the development front, McDonald’s (MCD) said the chain is still on track for 50K global restaurants by the end of 2027. New restaurant openings were noted to be accelerating.
On Wall Street, RBC Capital Markets analyst Logan Reich highlighted that McDonald’s (MCD) traffic and value & affordability scores improved in the quarter, which the firm thinks are key aspects of the bull thesis.
Shares of McDonald’s (MCD) were down 0.5% in postmarket action after an initial post-earnings rally.