Sales in Europe increased 3.4% for the three months to 31 December, despite the impact of bad weather, which affected sales in the UK and Germany.
It saw a 0.5% drop in like for like sales during the period.
McDonald’s does not report separate UK figures but Jill McDonald, McDonald’s UK CEO, says 2010 was a “record year” for the UK business.
She adds that: “We succeeded in growing our business and gaining market share from competitors in a tough market”
McDonald’s says its European operations continue to focus on “upgrading the customer experience” by modernising its restaurants, expanding its drive-thru business and offering a four-tier price menu.
It has recently introduced contactless payment in the UK.
The fast-food chain reported a 5% increase in global like for like sales and a 6% increase in total sales reaching a record $24bn (£15.2bn), for the year to 31 December.
In the US business, which reported a 4% rise in sales during the period, McDonald’s says its emphasis on driving customer traffic, menu innovation and value delivered “industry-leading” like for like sales growth during the fourth quarter.
McDonald’s plans to invest $2.5bn (£1.6bn) in new stores and refurbishing existing restaurants throughout 2011, including 10 new UK stores.