McDonald's Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. The quarter’s numbers.

Key takeaways

Comparable sales rose 3.8%: Global comparable sales rose 3.8%, against a 1.0% decline in the prior-year quarter. The company reported growth across all segments. Source
Systemwide sales rose 11%: Systemwide sales rose 11%, or 6% in constant currencies, to over $34 billion for the quarter. Systemwide sales include company-operated and franchised restaurants. Source
Operating income rose 12%: Operating income rose 12% to $2,953 million. Excluding current and prior year charges, consolidated operating income increased 11%, or 5% in constant currencies. Source
Adjusted EPS rose 6%: Excluding current year charges of $0.05 per share and prior year charges, diluted EPS was $2.83, up 6%, or 1% in constant currencies. Source
U.S. comparable sales rose 3.9%: U.S. comparable sales rose 3.9%, from a 3.6% decline a year earlier. The company said positive check growth primarily drove the result. Source
Franchised margins rose, tax rate higher: Excluding the above items, the company reported higher sales-driven Franchised margins, partly offset by a higher effective tax rate. Source

“McDonald's delivered this quarter. Our 6% global Systemwide sales growth shows how we executed with discipline, proving that we can drive results even in a challenging environment,”
Chairman and CEO Chris Kempczinski

Sales growth

Comparable sales rose 3.8%: Global comparable sales rose 3.8%, against a 1.0% decline in the prior-year quarter. The company reported growth across all segments. Source
Systemwide sales rose 11%: Systemwide sales rose 11%, or 6% in constant currencies, to over $34 billion for the quarter. Systemwide sales include company-operated and franchised restaurants. Source
Consolidated revenues rose 9%: Consolidated revenues rose 9%, or 4% in constant currencies, to $6,517 million from $5,956 million a year earlier. Source

Profit and earnings per share

Operating income rose 12%: Operating income rose 12% to $2,953 million. Excluding current and prior year charges, consolidated operating income increased 11%, or 5% in constant currencies. Source
Net income rose 6%: Net income rose 6% to $1,983 million, from $1,868 million a year earlier. Net income increased 1% in constant currencies. Source
GAAP diluted EPS rose 7%: Diluted earnings per share was $2.78, up 7% from $2.60, or 2% in constant currencies. Source
Adjusted EPS rose 6%: Excluding current year charges of $0.05 per share and prior year charges, diluted EPS was $2.83, up 6%, or 1% in constant currencies. Source
Diluted share count fell 1%: Weighted average diluted shares were 713.5 million, down 1% from 718.2 million a year earlier. Source

“Our value leadership, breakthrough marketing, and menu innovation continue to serve up what customers want.”
Chairman and CEO Chris Kempczinski

Segments and regions

U.S. comparable sales rose 3.9%: U.S. comparable sales rose 3.9%, from a 3.6% decline a year earlier. The company said positive check growth primarily drove the result. Source
International Operated Markets up 3.9%: International Operated Markets comparable sales rose 3.9%, from a 1.0% decline. Nearly all markets were positive, led by the U.K., Germany and Australia. Source
Licensed markets comparables up 3.4%: International Developmental Licensed Markets comparable sales rose 3.4%, from 3.5% a year earlier. Japan led, and all geographic regions grew. Source

Costs, margins and charges

Restructuring charges fell year on year: Pre-tax charges were $47 million, against $66 million a year earlier, mainly restructuring charges tied to Accelerating the Organization. Source
Franchised margins rose, tax rate higher: Excluding the above items, the company reported higher sales-driven Franchised margins, partly offset by a higher effective tax rate. Source
Tax provision rose 21%: Provision for income taxes was $559 million, up 21% from $461 million a year earlier. Source
Company-operated restaurant costs rose 9%: Company-owned and operated restaurant expenses were $2,032 million, up 9% from $1,859 million. Source

Revenue mix and loyalty

Franchised revenues rose 9%: Revenues from franchised restaurants were $4,007 million, up 9% from $3,661 million. Source
Company-operated sales rose 9%: Sales by Company-owned and operated restaurants were $2,317 million, up 9% from $2,132 million. Source
Loyalty sales topped $9 billion: Systemwide sales to loyalty members were over $9 billion for the quarter and over $38 billion for the trailing twelve months, across 70 loyalty markets. Source

Management view and commitments

Value, marketing and menu cited: Management said its value leadership, breakthrough marketing and menu innovation continue to serve what customers want. Source
Three-for-three commitment restated: Management said its commitment to going three-for-three sets the company apart. Source
Execution with discipline cited: Management said the 6% global Systemwide sales growth showed execution with discipline in a challenging environment. Source

Figures management reported

Figure	Reported
Comparable sales, total company Source	3.8%
Comparable sales, U.S. Source	3.9%

Risks management discussed

External: Management described the environment as challenging. The release names no specific pressure behind that description. Source

Earlier plans management reported on

Not stated: Management referred to its commitment to going three-for-three. The release gives no status update on it. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

McDONALD'S REPORTS FIRST QUARTER 2026 RESULTS

Global comparable sales increased 3.8% for the quarter, with consistently solid comparable sales growth across all segments
Global Systemwide sales* increased 11% (6% in constant currencies) to over $34 billion for the quarter
Across 70 loyalty markets, Systemwide sales to loyalty members were over $38 billion for the trailing twelve-month period and over $9 billion for the quarter

CHICAGO, IL - McDonald's Corporation today announced results for the first quarter ended March 31, 2026.

“McDonald's delivered this quarter. Our 6% global Systemwide sales growth shows how we executed with discipline, proving that we can drive results even in a challenging environment," said Chairman and CEO Chris Kempczinski. "And it’s our commitment to going three-for-three that sets McDonald’s apart. Our value leadership, breakthrough marketing, and menu innovation continue to serve up what customers want.”

First quarter financial performance:

Global comparable sales increased 3.8%:
U.S. increased 3.9%
International Operated Markets increased 3.9%
International Developmental Licensed Markets increased 3.4%
Consolidated revenues increased 9% (4% in constant currencies).
Systemwide sales increased 11% (6% in constant currencies).
Consolidated operating income increased 12% (6% in constant currencies). Results reflected pre-tax charges of $47 million and $66 million for the current year and prior year, respectively, primarily related to restructuring charges associated with Accelerating the Organization. Excluding these current and prior year charges, consolidated operating income increased 11% (5% in constant currencies).**
Diluted earnings per share was $2.78, an increase of 7% (2% in constant currencies). Excluding the current year charges described above of $0.05 per share, diluted earnings per share was $2.83, an increase of 6% (1% in constant currencies) when also excluding prior year charges.**

*Refer to page 3 for a definition of Systemwide sales.

**Refer to page 2 for additional details on our results for the first quarter 2026 and 2025.

COMPARABLE SALES

	Increase/(Decrease)
	Quarters Ended March 31,
	2026	2025
U.S.	3.9%	(3.6)%
International Operated Markets	3.9	(1.0)
International Developmental Licensed Markets	3.4	3.5
Total Company	3.8%	(1.0)%

U.S.: Comparable sales results were primarily driven by positive check growth.
International Operated Markets: Nearly all markets reflected positive comparable sales, led by the U.K., Germany and Australia.
International Developmental Licensed Markets: Positive comparable sales were led by Japan, with all geographic regions reflecting comparable sales growth.

KEY FINANCIAL METRICS - CONSOLIDATED

Dollars in millions, except per share data

	Quarters Ended March 31,
	2026	2025	Inc/ (Dec)	Inc/ (Dec) Excluding Currency Translation
Revenues	$6,517	$5,956	9%	4%
Operating income	2,953	2,648	12	6
Net income	1,983	1,868	6	1
Earnings per share-diluted	$2.78	$2.60	7%	2%

Results included pre-tax charges of $47 million, or $0.05 per share, for the three months ended March 31, 2026 and $66 million, or $0.07 per share, for the three months ended March 31, 2025, primarily related to restructuring charges associated with the Company's internal effort to modernize ways of working (Accelerating the Organization).

Excluding the above items, results reflected higher sales-driven Franchised margins, partly offset by a higher effective tax rate.

NET INCOME AND EARNINGS PER SHARE-DILUTED RECONCILIATION

Dollars in millions, except per share data

	Quarters Ended March 31,
	Net Income				Earnings per share - diluted
	2026	2025	Inc/ (Dec)	Inc/ (Dec) Excluding Currency Translation	2026	2025	Inc/ (Dec)	Inc/ (Dec) Excluding Currency Translation
GAAP	$1,983	$1,868	6%	1%	$2.78	$2.60	7%	2%
(Gains)/Charges, net of tax	36	51			0.05	0.07
Non-GAAP	$2,019	$1,919	5%	- %	$2.83	$2.67	6%	1%

THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT THIS RELEASE

Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates. Management reviews and analyzes business results excluding the effect of foreign currency translation, impairment and other charges and gains, as well as material regulatory and other income tax impacts, and bases incentive compensation plans on these results because the Company believes this better represents underlying business trends.

Comparable sales and comparable guest counts are compared to the same period in the prior year and represent sales and transactions, respectively, at all restaurants, whether owned and operated by the Company or by franchisees, in operation at least thirteen months including those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction, natural disasters, pandemics and acts of war, terrorism or other hostilities. Comparable sales exclude the impact of currency translation and the sales of any market considered hyperinflationary (generally identified as those markets whose cumulative inflation rate over a three-year period exceeds 100%), which management believes more accurately reflects the underlying business trends. Comparable sales are driven by changes in guest counts and average check, the latter of which is affected by changes in pricing and product mix.

Systemwide sales include sales at all restaurants, whether owned and operated by the Company or by franchisees. Systemwide sales to loyalty members are comprised of all sales to customers who self-identify as a loyalty member when transacting with both Company-owned and operated and franchised restaurants. Systemwide sales to loyalty members are measured across 70 markets with loyalty programs. Systemwide sales to loyalty members represents an aggregation of the prior four quarters of sales to loyalty members active in the last 90 days of the respective quarter. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The Company's revenues consist of sales by Company-owned and operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and affiliates. Changes in Systemwide sales are primarily driven by comparable sales and net restaurant unit expansion.

Free cash flow, defined as cash provided by operations less capital expenditures, and free cash flow conversion rate, defined as free cash flow divided by net income, are measures reviewed by management in order to evaluate the Company’s ability to convert net profits into cash resources, after reinvesting in the core business, that can be used to pursue opportunities to enhance shareholder value.

RELATED COMMUNICATIONS

This press release should be read in conjunction with Exhibit 99.2 to the Company's Form 8-K filing for supplemental information related to the Company's results for the quarter ended March 31, 2026.

McDonald’s Corporation will broadcast its investor earnings conference call live over the Internet at 7:30 a.m. (Central Time) on May 7, 2026. A link to the live webcast will be available at www.investor.mcdonalds.com. There will also be an archived webcast available for a limited time thereafter.

UPCOMING COMMUNICATIONS

For important news and information regarding McDonald's, including the timing of future investor conferences and earnings calls, visit the Investor Relations section of the Company's Internet home page at www.investor.mcdonalds.com. McDonald's uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.

ABOUT McDONALD’S

McDonald’s is the world’s leading global foodservice retailer with over 45,000 locations in over 100 countries. Approximately 95% of McDonald’s restaurants worldwide are owned and operated by independent local business owners.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from expectations are detailed in the Company’s filings with the Securities and Exchange Commission, including the risk factors discussed in Exhibit 99.2 to the Company’s Form 8-K filing on May 7, 2026. The Company undertakes no obligation to update such forward-looking statements, except as may otherwise be required by law.

McDONALD'S CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

Dollars and shares in millions, except per share data
Quarters Ended March 31,		2026		2025	Inc/ (Dec)
Revenues
Revenues from franchised restaurants	$4,007		$3,661		$345	9%
Sales by Company-owned and operated restaurants	2,317		2,132		185	9
Other revenues	193		162		31	19
TOTAL REVENUES	6,517		5,956		561	9
Operating costs and expenses
Franchised restaurants-occupancy expenses	676		620		56	9
Company-owned and operated restaurant expenses	2,032		1,859		173	9
Other restaurant expenses	166		140		26	19
Selling, general & administrative expenses
Depreciation and amortization	111		107		4	3
Other	648		575		73	13
Other operating (income) expense, net	(69)		7		(76)		n/m
Total operating costs and expenses	3,564		3,308		256	8
OPERATING INCOME	2,953		2,648		305	12
Interest expense	400		376		24	6
Nonoperating (income) expense, net	11		(57)		69		n/m
Income before provision for income taxes	2,542		2,330		212	9
Provision for income taxes	559		461		98	21
NET INCOME	$1,983		$1,868		$115	6%
EARNINGS PER SHARE-DILUTED	$2.78		$2.60		$0.18	7%
Weighted average shares outstanding-diluted	713.5		718.2		(4.7)	(1)%

n/m Not meaningful

Contacts
5/7/2026
FOR MORE INFORMATION CONTACT: Investors: Dexter Congbalay, investor.relations@us.mcd.com · Media: Lauren Altmin, lauren.altmin@us.mcd.com