McDonald's and Domino's are both performing well in the fast-food sector, but one may offer better growth potential. This article examines their recent financial results and market positioning.
- McDonald's reported a 10% year-over-year revenue increase in Q4 2025, with same-store sales rising 5.7% globally and 6.8% in the U.S.
- Domino's reported a 3.7% increase in same-store sales in Q4 2025 and 3% for the full year, with revenue rising 6% in Q4 and 5% for the full year.
- Domino's stock has a forward P/E ratio of 18, lower than McDonald's, and a median price target suggesting 33% upside.
- Domino's anticipates a 3% increase in same-store sales and 6% growth in global sales in 2026, with operating income expected to rise 8%.
- Domino's reported a 5.4 percentage point reduction in its gross margin for company-owned stores to 10.1% in Q4 2025 but noted a slight increase in supply chain gross margin to 11.4%.
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