McDONALD'S REPORTS SECOND QUARTER 2026 RESULTS

Rhea-AI Summary

McDonald's (NYSE:MCD) reported second quarter 2026 results with global comparable sales up 1.3%, including the U.S. up 0.8%, International Operated Markets up 1.5% and International Developmental Licensed Markets up 1.9%. Consolidated revenues rose 4% to $7.1 billion, while Systemwide sales increased 5% to $37 billion.

Diluted EPS was $3.32, up 6% (5% in constant currencies). Excluding restructuring-related charges of $0.06 per share in 2026 and comparable prior-year charges, non-GAAP diluted EPS was $3.38, also up 6%. Consolidated operating income increased 3% to $3.3 billion; excluding charges, operating income grew 4%.

Across 70 loyalty markets, trailing twelve-month Systemwide sales to loyalty members rose over 20% to $40 billion, with 90-day active loyalty users up 13% to nearly 220 million. McDonald's appointed Skye Anderson as President of McDonald's USA to lead its largest market.

Positive

• Revenue growth to $7.1 billion, up 4% year-over-year
• Diluted EPS up 6% to $3.32; non-GAAP EPS $3.38, also up 6%
• Net income increased 5% to $2.36 billion for the quarter
• Systemwide sales grew 5% to $37 billion in the quarter
• Loyalty sales over trailing 12 months up 20% to $40 billion
• Operating income rose to $3.34 billion, up 3% year-over-year

Negative

• Global comparable sales growth slowed to 1.3% from 3.8% in Q2 2025
• U.S. comparable sales growth eased to 0.8% versus 2.5% a year earlier
• Restructuring charges of $52 million pre-tax in Q2 2026
• Selling, general and administrative expenses increased versus prior year period
• China posted negative comparable sales within International Developmental Licensed Markets

News Explained

The disclosed $37 billion of second-quarter systemwide sales includes franchisee restaurants, whereas $7,099 million is the company’s reported revenue; the two figures have different scopes, so systemwide sales should not be read as company revenue.

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• Global Systemwide sales* increased 5% (4% in constant currencies) to $37 billion for the quarter

• Across 70 loyalty markets, Systemwide sales to loyalty members for the trailing twelve months increased over 20% to $40 billion, with 90-day active loyalty users up 13% to nearly 220 million as of quarter-end

• Skye Anderson, proven McDonald's executive, appointed as President of McDonald's USA to lead the Company's largest market

CHICAGO, Aug. 4, 2026 /PRNewswire/ -- McDonald's Corporation today announced results for the second quarter ended June 30, 2026.

"This quarter McDonald's delivered positive comparable sales growth across every segment and acted decisively to strengthen execution as we prime McDonald's for the next era of long-term growth," said Chris Kempczinski, Chairman and CEO. "While our playbook is working around the world, we see an opportunity to raise the bar in the U.S. and accelerate performance in our largest market. Skye Anderson's appointment today as President of McDonald's USA will bring focus and urgency to these efforts given her deep system knowledge, operational discipline, and proven ability to drive change and deliver results for everyone in our System."

Second quarter financial performance:

• Global comparable sales increased 1.3%:
  • U.S. increased 0.8%
  • International Operated Markets increased 1.5%
  • International Developmental Licensed Markets increased 1.9%
• Consolidated revenues increased 4% (2% in constant currencies).
• Systemwide sales increased 5% (4% in constant currencies).
• Consolidated operating income increased 3% (2% in constant currencies). Results reflected pre-tax charges of $52 million and $43 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 4% (2% in constant currencies).**
• Diluted earnings per share was $3.32, an increase of 6% (5% in constant currencies). Excluding the current year charges described above of $0.06 per share, diluted earnings per share was $3.38, an increase of 6% (5% in constant currencies) when also excluding prior year charges.**

*Refer to page 4 for a definition of Systemwide sales.

**Refer to pages 2 and 3 for additional details on our results for the second quarter 2026 and 2025.

1

COMPARABLE SALES

		Increase/(Decrease)
		Quarters Ended June 30,
		2026		2025
U.S.		0.8 %		2.5 %
International Operated Markets		1.5		4.0
International Developmental Licensed Markets		1.9		5.6
Total Company		1.3 %		3.8 %

• U.S.: Comparable sales results were driven by positive check growth, including favorable product mix, partly offset by negative comparable guest counts.

• International Operated Markets: Most markets reflected positive comparable sales, led by Germany, Australia and the U.K., partly offset by France.

• International Developmental Licensed Markets: Positive comparable sales were led by Japan, with all geographic regions reflecting positive comparable sales. Comparable sales results were partly offset by negative comparable sales in China.

KEY FINANCIAL METRICS - CONSOLIDATED
Dollars in millions, except per share data

	Quarters Ended June 30,										Six Months Ended June 30,
	2026		2025		Inc/ (Dec)			Inc/ (Dec) Excluding Currency Translation			2026		2025		Inc/ (Dec)			Inc/ (Dec) Excluding Currency Translation
Revenues	$   7,099		$   6,843		4	%		2	%		$  13,616		$  12,799		6	%		3	%
Operating income	3,338		3,232		3			2			6,292		5,880		7			4
Net income	2,362		2,253		5			4			4,345		4,121		5			3
Earnings per share-diluted	$    3.32		$    3.14		6	%		5	%		$     6.10		$     5.74		6	%		3	%

Results for 2026 included the following:

• Net pre-tax charges of $52 million, or $0.06 per share, for the quarter and $99 million, or $0.11 per share, for the six months, primarily related to restructuring charges associated with the Company's internal effort to modernize ways of working (Accelerating the Organization)

Results for 2025 included the following:

• Pre-tax charges of $43 million, or $0.05 per share, for the quarter and $109 million, or $0.12 per share, for the six months, primarily related to restructuring charges associated with Accelerating the Organization

Excluding the above items, results for the quarter and six months ended June 30, 2026 were primarily driven by higher sales-driven Franchised margins and higher Other operating income, partly offset by higher Selling, general and administrative expenses.

2

NET INCOME AND EARNINGS PER SHARE-DILUTED RECONCILIATION
Dollars in millions, except per share data

	Quarters Ended June 30,
	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	$  2,362		$  2,253		5	%		4	%		$   3.32		$   3.14		6	%		5	%
(Gains)/Charges, net of tax	40		34								0.06		0.05
Non-GAAP	$  2,402		$  2,286		5	%		4	%		$   3.38		$   3.19		6	%		5	%

	Six Months Ended June 30,
	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	$  4,345		$  4,121		5	%		3	%		$   6.10		$   5.74		6	%		3	%
(Gains)/Charges, net of tax	76		84								0.11		0.12
Non-GAAP	$  4,421		$  4,206		5	%		2	%		$   6.21		$   5.86		6	%		3	%

3

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 and six months ended June 30, 2026.

McDonald's Corporation will broadcast its investor earnings conference call live over the Internet at 7:30 a.m. (Central Time) on August 4, 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 August 4, 2026. The Company undertakes no obligation to update such forward-looking statements, except as may otherwise be required by law.

4

McDONALD'S CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Dollars and shares in millions, except per share data
Quarters Ended June 30,	2026		2025		Inc/ (Dec)
Revenues
Revenues from franchised restaurants	$     4,393		$     4,213		$       180		4 %
Sales by Company-owned and operated restaurants	2,525		2,458		66		3
Other revenues	182		172		10		6
TOTAL REVENUES	7,099		6,843		256		4
Operating costs and expenses
Franchised restaurants-occupancy expenses	680		654		26		4
Company-owned and operated restaurant expenses	2,138		2,078		60		3
Other restaurant expenses	163		149		14		9
Selling, general & administrative expenses
Depreciation and amortization	111		106		5		5
Other	706		595		111		19
Other operating (income) expense, net	(37)		29		(66)		n/m
Total operating costs and expenses	3,760		3,611		150		4
OPERATING INCOME	3,338		3,232		106		3
Interest expense	409		390		19		5
Nonoperating (income) expense, net	(6)		(18)		12		(66)
Income before provision for income taxes	2,936		2,861		75		3
Provision for income taxes	574		608		(34)		(6)
NET INCOME	$     2,362		$     2,253		$       109		5 %
EARNINGS PER SHARE-DILUTED	$      3.32		$      3.14		$      0.18		6 %
Weighted average shares outstanding-diluted	711.1		717.6		(6.5)		(1) %
n/m Not meaningful

5

McDONALD'S CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Dollars and shares in millions, except per share data
Six Months Ended June 30,	2026		2025		Inc/ (Dec)
Revenues
Revenues from franchised restaurants	$     8,399		$     7,874		$       525		7 %
Sales by Company-owned and operated restaurants	4,842		4,590		251		5
Other revenues	375		334		41		12
TOTAL REVENUES	13,616		12,799		817		6
Operating costs and expenses
Franchised restaurants-occupancy expenses	1,356		1,274		82		6
Company-owned and operated restaurant expenses	4,170		3,937		233		6
Other restaurant expenses	329		289		40		14
Selling, general & administrative expenses
Depreciation and amortization	222		213		9		4
Other	1,354		1,170		184		16
Other operating (income) expense, net	(106)		36		(142)		n/m
Total operating costs and expenses	7,324		6,918		406		6
OPERATING INCOME	6,292		5,880		411		7
Interest expense	809		766		43		6
Nonoperating (income) expense, net	5		(76)		81		n/m
Income before provision for income taxes	5,478		5,190		287		6
Provision for income taxes	1,133		1,069		64		6
NET INCOME	$     4,345		$     4,121		$       224		5 %
EARNINGS PER SHARE-DILUTED	$      6.10		$      5.74		$      0.36		6 %
Weighted average shares outstanding-diluted	712.3		717.9		(5.6)		(1) %
n/m Not meaningful

6

View original content:https://www.prnewswire.com/news-releases/mcdonalds-reports-second-quarter-2026-results-302841703.html

SOURCE McDonald's Corporation

FAQ

How did McDonald's (MCD) perform financially in the second quarter of 2026?

McDonald’s reported higher revenue, earnings and Systemwide sales in Q2 2026. According to McDonald’s, revenue rose 4% to $7.1 billion, net income increased 5% to $2.36 billion and Systemwide sales grew 5% to $37 billion for the quarter.

What were McDonald's (MCD) Q2 2026 earnings per share?

McDonald’s delivered diluted EPS of $3.32 in Q2 2026, up 6% year-over-year. According to McDonald’s, excluding restructuring-related charges, non-GAAP diluted EPS was $3.38, also a 6% increase, reflecting higher sales-driven franchised margins and other operating income.

How did comparable sales by segment trend for McDonald's (MCD) in Q2 2026?

McDonald’s saw positive comparable sales across all segments in Q2 2026. According to McDonald’s, comparable sales rose 0.8% in the U.S., 1.5% in International Operated Markets, 1.9% in International Developmental Licensed Markets, and 1.3% for the total company versus Q2 2025.

What were McDonald's (MCD) loyalty program results in the second quarter of 2026?

McDonald’s loyalty ecosystem continued to expand in Q2 2026. According to McDonald’s, trailing twelve-month Systemwide sales to loyalty members across 70 markets exceeded $40 billion, up over 20%, with 90-day active loyalty users increasing 13% to nearly 220 million by quarter-end.

What restructuring charges did McDonald's (MCD) record in Q2 2026?

McDonald’s recorded restructuring-related costs tied to its Accelerating the Organization effort. According to McDonald’s, Q2 2026 results included net pre-tax charges of $52 million, or $0.06 per share, primarily related to modernizing internal ways of working across the organization.

Who was appointed President of McDonald's USA in August 2026 and why is it important?

McDonald’s appointed Skye Anderson as President of McDonald’s USA effective around its Q2 2026 announcement. According to McDonald’s, she is expected to bring operational discipline and focus to accelerate performance and strengthen execution in the company’s largest market, the United States.

When is McDonald's (MCD) Q2 2026 earnings conference call and how can investors listen?

McDonald’s scheduled its Q2 2026 earnings call for 7:30 a.m. Central Time on August 4, 2026. According to McDonald’s, investors can access a live and subsequently archived webcast through the Investor Relations section at www.investor.mcdonalds.com.