McDonald’s (NYSE:MCD) is proving that in a cautious consumer environment, affordability still wins. The company’s renewed emphasis on discounts, promotions, and limited-time offerings delivered stronger-than-expected fourth-quarter results, reinforcing the power of its value-driven approach.
A closer look at the numbers shows how McDonald’s value strategy is helping the fast-food giant regain customer traffic and market share both in the U.S. and internationally.
McDonald’s Value Strategy Lifts Same-Store Sales
Global same-store sales, a key measure of performance at locations open at least one year, rose 5.7% in the October-December quarter. That figure exceeded Wall Street expectations of 3.9%, according to analyst estimates.
In the United States, same-store sales climbed 6.8% during the quarter. The performance suggests that pricing adjustments and promotional campaigns resonated with cost-conscious consumers.
McDonald’s revenue rose 10% year over year to $7.01 billion, beating forecasts of $6.84 billion. Net income increased 7% to $2.16 billion. On an adjusted basis, earnings per share came in at $3.12, topping analyst expectations of $3.05.
Despite the strong report, shares were flat in after-hours trading, indicating that investors may already have priced in much of the positive momentum.
Targeting Value-Conscious Consumers
The heart of the McDonald’s value strategy lies in its focus on affordability. In September, the company reduced prices on select U.S. combo meals under its Extra Value Meal promotions. These efforts followed earlier 2025 initiatives, including the introduction of its McValue menu.
One of the standout contributors was the return of the Snack Wrap, priced at $2.99. The popular item helped improve value perception and attract budget-conscious diners.
CEO Chris Kempczinski emphasized that the company gained traction among households earning $45,000 or less annually — a demographic that had been drifting away from the brand.
“McDonald’s is not going to get beat on value and affordability,” Kempczinski said during the company’s earnings call.
That statement underscores management’s commitment to defending its position in a competitive quick-service market, especially as inflation pressures continue to affect consumer spending habits.
Marketing Promotions Add Momentum
Beyond pricing adjustments, creative marketing campaigns also played a significant role in driving traffic. The return of the classic Monopoly game in October generated customer engagement, while a Grinch-themed meal promotion in December delivered surprising results.
According to management, McDonald’s sold 50 million pairs of Grinch socks in just a few days, briefly becoming the world’s largest seller of socks. While novelty merchandise may not represent a long-term revenue driver, it demonstrates the brand’s ability to create buzz and attract incremental visits.
These campaigns illustrate how the McDonald’s value strategy extends beyond price cuts. By combining affordability with fun, limited-time experiences, the company keeps customers engaged.
International Markets Mirror the Approach
The McDonald’s value strategy is not limited to the U.S. International markets have adopted similar tactics. In Germany, for example, lower-priced McSmart snacks have boosted traffic.
Same-store sales in company-operated international markets rose 5.2% during the fourth quarter. However, Chief Financial Officer Ian Borden cautioned that first-quarter growth may moderate due to severe winter weather affecting traffic and restaurant operations.
Weather disruptions are largely outside management’s control. Still, executives expressed confidence in the company’s underlying business momentum.
“We’re really confident about what’s within our control, really confident about the underlying momentum of the business,” Borden said.
Innovation and Menu Expansion Ahead
Looking forward, McDonald’s is preparing to expand its menu offerings. The company plans to introduce new beverages under its McCafe brand later this year, including energy drinks, iced coffees, and fruity refreshers. Some of these drinks are inspired by CosMc’s, a short-lived experimental restaurant format.
This move could open new revenue streams, particularly in the high-margin beverage category. Expanding drink options also aligns with broader industry trends, where specialty beverages and energy drinks continue to gain popularity.
By combining menu innovation with its established value focus, McDonald’s aims to balance affordability and growth.
Competitive Landscape Remains Focused on Value
McDonald’s is not alone in emphasizing affordability. Competitors are also sharpening their value messaging. Taco Bell, for example, expanded its value menu in early 2025 and reported a 7% increase in same-store sales for the October-December period.
The broader quick-service industry appears locked in a battle to attract budget-conscious consumers. In that environment, scale, brand recognition, and operational efficiency become key advantages.
McDonald’s size and global reach allow it to execute nationwide promotions and absorb pricing adjustments more effectively than smaller rivals.
The Bottom Line
The latest earnings report demonstrates that the McDonald’s value strategy is delivering tangible results. Strong same-store sales growth, revenue beats, and earnings outperformance show that affordability and smart marketing still resonate with consumers.
While near-term headwinds such as winter weather could temper first-quarter growth, the company’s renewed focus on value appears to be restoring traffic and strengthening customer loyalty.
For investors evaluating McDonald’s (NYSE:MCD), the message is clear: in uncertain economic times, a disciplined commitment to value can be a powerful competitive edge.
Featured Image: Unsplash
