McDONALD'S REPORTS FIRST QUARTER 2026 RESULTS

Rhea-AI Summary

McDonald's (NYSE:MCD) reported results for Q1 2026 (ended Mar 31, 2026). Systemwide sales rose 11% (6% constant currency) to over $34 billion, while global comparable sales increased 3.8%. Consolidated revenues were $6,517 million, up 9% (4% cc).

Operating income was $2,953 million (+12%; +6% cc). Diluted EPS was $2.78 (+7%; +2% cc); adjusted EPS excluding charges was $2.83. Pre-tax restructuring charges were $47 million this quarter. Systemwide sales to loyalty members exceeded $38 billion TTM and over $9 billion for the quarter.

Positive

• Systemwide sales +11% (6% cc) to >$34B
• Consolidated revenues $6,517M (+9%; +4% cc)
• Operating income $2,953M (+12%; +6% cc)
• Diluted EPS $2.78 (+7%; +2% cc)
• Comparable sales +3.8% companywide
• Loyalty systemwide sales >$38B TTM; >$9B this quarter

Negative

• Pre-tax restructuring charges of $47M in Q1 2026
• Net income growth modest: +6% (only +1% cc)
• Adjusted EPS growth smaller on cc basis: +1–2%
• Prior-year related charges of $66M noted for comparison

Key Figures

Global comparable sales: 3.8% Consolidated revenues: $6,517M Operating income: $2,953M +5 more

8 metrics

Global comparable sales 3.8% Q1 2026 year-over-year growth

Consolidated revenues $6,517M Q1 2026, up 9% vs Q1 2025

Operating income $2,953M Q1 2026, up 12% vs prior year

Net income $1,983M Q1 2026, up 6% vs prior year

Diluted EPS (GAAP) $2.78 Q1 2026, up from $2.60 (+7%)

Diluted EPS (non-GAAP) $2.83 Q1 2026, up from $2.67 (+6%)

Systemwide sales >$34B Q1 2026, up 11% (6% constant currency)

Loyalty sales TTM >$38B Systemwide sales to loyalty members across 70 markets

Market Reality Check

Price: $283.70 Vol: Volume 3,690,155 vs 20-da...

normal vol

$283.70 Last Close

Volume Volume 3,690,155 vs 20-day average 3,379,534 (relative volume 1.09x) shows slightly elevated trading ahead of the report. normal

Technical Price at $283.72 is below the 200-day MA of $309.29 and sits near the 52-week low of $282.40.

Peers on Argus

MCD was down 0.38% pre-earnings while peers were mixed: SBUX up 1.61%, YUM up 0....

1 Down

MCD was down 0.38% pre-earnings while peers were mixed: SBUX up 1.61%, YUM up 0.16%, but DRI, DPZ, and QSR down between 1.25% and 4.83%, suggesting stock-specific focus rather than a clean sector trend.

Previous Earnings Reports

5 past events · Latest: Feb 11 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 11	Q4/FY 2025 earnings	Positive	+2.7%	Strong Q4 comps, double-digit systemwide growth, dividend increase, and EPS gains.
Nov 05	Q3 2025 earnings	Positive	+2.2%	Solid global comp growth, higher revenues and operating income, EPS up with modest charges.
Aug 06	Q2 2025 earnings	Positive	+3.0%	Global comps up 3.8%, revenue and operating income growth, double-digit EPS increase.
May 01	Q1 2025 earnings	Negative	-1.9%	Global comps down 1.0%, U.S. weakness, lower revenues and EPS despite loyalty strength.
Feb 10	Q4/FY 2024 earnings	Negative	+4.8%	Flat-to-soft comps and EPS with sizable restructuring charges but shares reacted strongly higher.

Pattern Detected

Recent earnings releases (5 events) mostly led to positive price reactions, whether results were strong or mixed, with only one notable divergence where mixed results saw a strong upside move.

Recent Company History

Over the last five earnings reports from Feb 2024 through Feb 2026, McDonald’s has repeatedly highlighted global comparable sales growth, strong Systemwide sales, and expanding loyalty-driven revenue. Even when comps softened in early 2025, loyalty sales and international markets provided support. Subsequent quarters showed resumed growth in comps, revenues, and EPS, alongside ongoing restructuring charges tied to organizational modernization. Today’s Q1 2026 release, with global comparable sales up 3.8% and EPS growth, fits into this pattern of steady, loyalty-supported expansion.

Historical Comparison

+2.2% avg move · Past five earnings releases saw an average move of 2.16%, with four positive reactions, underscoring...

earnings

+2.2%

Average Historical Move earnings

Past five earnings releases saw an average move of 2.16%, with four positive reactions, underscoring that earnings have typically been meaningful catalysts for MCD.

Earnings updates show a shift from flat or negative comps and EPS pressure in 2024–early 2025 toward more consistent comp growth, higher Systemwide sales, and rising EPS through late 2025 and Q1 2026, supported by expanding loyalty sales and ongoing restructuring.

Market Pulse Summary

This announcement reports solid Q1 2026 performance, with global comparable sales up 3.8%, revenues ...

Analysis

This announcement reports solid Q1 2026 performance, with global comparable sales up 3.8%, revenues rising 9% to $6,517M, and diluted EPS increasing to $2.78 (non-GAAP $2.83). Systemwide sales grew 11% to above $34B, while loyalty systemwide sales exceeded $38B over the past year. Compared with earlier periods that saw softer comps, the release underscores continued benefits from marketing, menu innovation, and loyalty engagement, though restructuring charges and regional demand trends remain key watch points.

Key Terms

systemwide sales, comparable sales, constant currencies, free cash flow, +1 more

5 terms

systemwide sales financial

"Global Systemwide sales* increased 11% (6% in constant currencies) to over $34 billion"

Systemwide sales are the combined revenue generated by all locations and channels that operate under a brand, including both company-owned outlets and franchised or independently operated sites. For investors, this is like looking at a chain’s entire footprint to see whether the business is expanding or shrinking overall, offering a clearer picture of demand and growth potential than revenue from just the corporate-owned portion alone.

comparable sales financial

"Global comparable sales increased 3.8% for the quarter, with consistently solid comparable sales growth"

"Comparable sales" are the total sales from stores or products that have been open for a certain period, usually the same time last year or last quarter. They help show whether a business is growing by comparing similar locations or products over time, much like checking if your favorite store's sales are going up compared to previous years.

constant currencies financial

"Global Systemwide sales* increased 11% (6% in constant currencies)"

Constant currencies is a way companies report sales and profit changes as if exchange rates had not moved, isolating underlying business performance from currency swings. For investors it matters because it shows whether growth comes from actual demand or just favorable exchange-rate moves—think of it like comparing two stores’ receipts after converting prices to the same stable money to see who actually sold more, not who benefitted from changing rates.

free cash flow financial

"Free cash flow, defined as cash provided by operations less capital expenditures"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

free cash flow conversion rate financial

"free cash flow conversion rate, defined as free cash flow divided by net income"

A free cash flow conversion rate is the percentage that shows how much of a company’s reported profit actually becomes free cash — the cash left after running the business and making necessary investments. It tells investors whether earnings are turning into real, spendable money for dividends, debt repayment or growth; high conversion is like keeping most of your paycheck after bills, while low conversion means reported profits aren’t producing much usable cash.

AI-generated analysis. Not financial advice.

• 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, May 7, 2026 /PRNewswire/ -- 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.

1

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	%

2

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.

3

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

4

View original content:https://www.prnewswire.com/news-releases/mcdonalds-reports-first-quarter-2026-results-302764628.html

SOURCE McDonald's Corporation

FAQ

What were McDonald's (MCD) Q1 2026 revenues and systemwide sales?

McDonald's reported $6,517 million in consolidated revenues for Q1 2026. According to the company, systemwide sales rose 11% (6% in constant currency) to more than $34 billion for the quarter.

How did McDonald's (MCD) comparable sales perform in Q1 2026?

Comparable sales for Q1 2026 increased 3.8% companywide. According to the company, U.S. and International Operated Markets each rose about 3.9%, with Japan leading developmental licensed markets.

What was McDonald's (MCD) EPS for Q1 2026 and any adjustments?

Diluted EPS for Q1 2026 was $2.78. According to the company, excluding $0.05 per share of restructuring charges, adjusted diluted EPS was $2.83 for the quarter.

How large were McDonald's (MCD) restructuring charges in Q1 2026?

The company recorded pre-tax restructuring charges of $47 million in Q1 2026. According to the company, these relate primarily to the 'Accelerating the Organization' effort to modernize ways of working.

What do McDonald's (MCD) loyalty sales look like for the trailing twelve months?

Systemwide sales to loyalty members exceeded $38 billion for the trailing twelve months. According to the company, loyalty-member sales were also over $9 billion during the quarter.

Where can investors find McDonald's (MCD) Q1 2026 webcast and supplemental filings?

Investors can access the live and archived investor earnings webcast on the company's investor site. According to the company, supplemental information is included in Exhibit 99.2 to its Form 8-K filing.