McDonald's Q2 Earnings and Revenues Beat Estimates, Stock Up

McDonald's Corporation MCD reported second-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both top and bottom lines increased year over year.

Following the results, the company’s shares are up 3.5% in today’s pre-market trading session. The company’s results in the quarter were aided by an increase in comparable guest counts. 

McDonald’s performance was aided by strong value offerings, impactful marketing and menu innovation that resonated with customers globally. Tech investments and rapid digital expansion also enhanced convenience and boosted engagement across channels.

MCD’s Earnings & Revenue Discussion

In second-quarter 2025, McDonald's reported adjusted earnings per share (EPS) of $3.19, which beat the Zacks Consensus Estimate of $3.15. Adjusted earnings rose 7.4% year over year.

Quarterly net revenues of $6,843 million beat the consensus mark of $6,714 million. Additionally, the top line rose 5% year over year.

At company-operated restaurants, sales were $2.5 billion, flat year over year. Sales at franchise-operated restaurants amounted to $4.2 billion, which increased 7% year over year. Moreover, Other revenues rose 92% year over year to $172 million. Our model predicted sales by company-operated and franchise-operated restaurants to rise 1.2% and 2.5%, respectively, from the prior-year levels.

McDonald's Comps Details

In the quarter under discussion, global comps rose 3.8% against 1% decline in the prior-year quarter. Our estimate was a 2.4% increase year over year.

Comps Across MCD’s Segments

United States.: In the second quarter, segmental comps rose 2.5% against a 0.7% decline registered in the prior-year quarter. The company's comparable sales for the quarter were aided by positive check growth. Our model estimated the U.S. comps to increase 2.4%.

International Operated Markets: Segmental comps jumped 4% against a decline of 1.1% in the year-ago quarter. The rise was driven by positive comparable sales across all markets. We anticipated an increase of 2% from the year-ago levels.

International Developmental Licensed Segment: Segmental comparable sales registered a 5.6% increase in contrast to the 1.3% decline in the prior-year quarter. Japan led the growth in positive comparable sales, with all global regions also reporting increases.

Operating Highlights & Expenses of McDonald's

In the second quarter, McDonald’s total operating costs and expenses were $3.6 billion, up 1% year over year.

Operating income rose 11% year over year to $3.2 billion. Net income totaled $2.3 billion, up 11% year over year.

MCD’s Zacks Rank & Key Picks

MCD currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the Zacks Retail – Restaurants industry are BJ's Restaurants, Inc. BJRI, Yum! Brands, Inc. YUM and The Cheesecake Factory Incorporated CAKE.

BJ's Restaurants presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock has gained 20.1% in the past year. The Zacks Consensus Estimate for BJ's Restaurants’ 2025 sales and EPS indicate an increase of 3.6% and 130.8%, respectively, from the year-ago levels.

Yum! Brands currently carries a Zacks Rank #2 (Buy).The company has gained 4% in the year-to-date period.

The Zacks Consensus Estimate for Yum! Brands' 2025 sales and EPS indicates growth of 6.9% and 9.5%, respectively, from the year-ago period’s levels.

Cheesecake Factory presently carries a Zacks Rank #2. The stock has gained 15.6% in the past six months.

The Zacks Consensus Estimate for Cheesecake Factory’s 2025 sales and EPS implies growth of 5.5% and 1.7%, respectively, from the year-ago levels.

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This article originally published on Zacks Investment Research (zacks.com).

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