McDonald’s (NYSE:MCD) shares rose more than 4% intra-day today after delivering better-than-expected comparable sales in the fourth quarter, with strong performance in international markets helping to offset weaker demand in the U.S. Despite slowing growth, the fast-food giant exceeded analyst expectations, driven by strength in the Middle East and Japan.
For the quarter, global same-store sales increased by 0.4%, a sharp slowdown from the 3.4% growth seen a year earlier. While consumer demand in the U.S. remained sluggish, the figure outpaced analyst projections, which had anticipated a decline of nearly 1%.
Internationally, McDonald’s saw a notable boost from its licensed markets, where same-store sales jumped 4.1%, far exceeding both last year’s modest 0.7% growth and expectations for a decline. The company highlighted strong demand in key regions such as Japan and the Middle East, which contributed significantly to the segment’s outperformance.
In response to shifting consumer spending, McDonald’s has been rolling out more budget-friendly menu options to attract price-conscious customers. This comes as the company works to recover from an E. coli outbreak last year, which impacted customer traffic and confidence. Leadership has reaffirmed its commitment to food safety and rebuilding trust, emphasizing efforts to regain momentum in the U.S. market.
On the financial side, total revenue for the quarter dipped slightly by 0.3% year-over-year to $6.39 billion, missing analyst estimates of $6.45 billion. However, operating income rose 2.4% to $2.87 billion, reflecting operational resilience despite the sales slowdown.
As McDonald’s navigates a challenging consumer landscape, international strength and strategic pricing adjustments will be key to driving future growth.