By Evie Liu
McDonald's spent the past year trying to convince customers it could still be an affordable place to eat. The strategy appears to be working.
The fast-food giant is set to report first-quarter results before the market opens on Thursday. For the three months ended in March, analysts polled by FactSet expect the company to report net revenue of $6.47 billion, up 8.4% from the year-ago quarter. Adjusted earnings are expected to come at $2.74 a share, up from $2.67 the year prior.
The company struggled through much of 2024 and early 2025 as inflation-weary diners, especially lower-income households, cut back on restaurant spending. Many believed the chain had become too expensive relative to competitors. U.S. comparable sales fell 1.4% from a year ago in the fourth quarter of 2024, and dropped 3.6% in the first quarter of 2025.
Management responded with an aggressive push on value. The company launched the McValue platform in 2025 that includes various $5 meal deals and "Buy One, Add One for $1" offers. In 2026, the company further expanded the platform, adding many items priced below $3 along with $4 breakfast meal deals.
The fast-food giant paired those discounts with a steady stream of marketing promotions -- including the revival of its Monopoly promotion and holiday-themed Grinch meals---designed to create excitement and drive repeat visits. Executives said the Grinch promotion produced the highest single sales day in company history.
McDonald's also leaned heavily in menu innovations to attract new customers. It brought back the popular Snack Wraps, added new McCrispy chicken strips, and continued promoting the Chicken Big Mac. Management believes chicken -- one of the fastest-growing categories in fast food -- could help it gain another point of market share by the end of 2026.
The burger and fries giant is also making a serious push into specialty beverages, introducing crafted sodas and energy drinks earlier this year. Beverages typically carry higher margins and help lift traffic and check size without leaning heavily on discounts. Younger consumers are increasingly viewing beverages as a treat and something to share with friends on social media.
The turnaround has begun showing up in the numbers. By the fourth quarter of 2025, global comparable sales climbed 5.7%, lifted by the 6.8% growth in U.S. same-store sales. Investors will be watching whether those momentum could continue in 2026 and what the company's outlook would be for this year.
"McDonald's value leadership is working," said CEO Chris Kempczinski in the last earnings report,"By listening to customers and taking action, we have improved traffic and strengthened our value and affordability scores."
Write to Evie Liu at evie.liu@barrons.com
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May 06, 2026 17:35 ET (21:35 GMT)
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