McDONALD'S REPORTS THIRD QUARTER 2026 RESULTS

Sales to loyalty members exceeded $11 billion for the quarter across 70 loyalty markets.

Rhea-AI Summary

McDonald's (MCD) reported third-quarter 2026 diluted earnings per share of $3.51, up 10% from a year earlier. Revenue rose 1% to $7,157 million, operating income increased 7% to $3,595 million, and net income grew 9% to $2,486 million.

Global comparable sales—sales at restaurants operating at least thirteen months—rose 1.5%. U.S. comparable sales fell 0.2% as customer transactions declined, while International Operated Markets grew 1.4% and International Developmental Licensed Markets increased 4.2%. Systemwide sales, including franchised restaurants, increased 4% to over $38 billion.

Quarterly pre-tax charges, primarily for restructuring, totaled $56 million versus $39 million a year earlier. Excluding charges, operating income grew 8% and diluted earnings per share rose 11% to $3.57. McDonald's declared a 4% dividend increase to $1.93 per share.

24 points · 0 major

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0 major · 14 points

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Positive

• Moderate pointThird-quarter diluted earnings per share rose 10% to $3.51; excluding charges, rose 11% to $3.57.
• Moderate pointThird-quarter revenue increased 1% to $7,157 million year over year.
• Moderate pointThird-quarter operating income rose 7% to $3,595 million; excluding charges, increased 8%.
• Moderate pointThird-quarter net income increased 9% to $2,486 million year over year.
• Moderate pointThird-quarter Systemwide sales increased 4% to over $38 billion, including company-operated and franchised restaurants.
• Moderate pointGlobal comparable sales increased 1.5% in third-quarter 2026, versus 3.6% growth in third-quarter 2025.

18 minor points

• Minor pointQuarterly cash dividend increased 4% to $1.93 per share.
• Minor pointInternational Operated Markets comparable sales grew 1.4%, versus 4.3% growth in third-quarter 2025.
• Minor pointInternational Developmental Licensed Markets comparable sales grew 4.2%, versus 4.7% growth in third-quarter 2025.
• Minor pointLoyalty-member Systemwide sales reached $41 billion over the trailing twelve months and more than $11 billion quarterly.
• Minor pointThird-quarter franchised restaurant revenue rose 3% to $4,487 million year over year.
• Minor pointThird-quarter other revenue increased 26% to $189 million year over year.
• Minor pointThird-quarter company-operated restaurant expenses decreased 4% to $2,088 million year over year.
• Minor pointThird-quarter selling, general and administrative other expenses fell 3% to $641 million year over year.
• Minor pointThird-quarter selling, general and administrative depreciation and amortization decreased 2% to $118 million.
• Minor pointThird-quarter other operating income increased to $139 million from $37 million a year earlier.
• Minor pointNine-month revenue increased 5% to $20,773 million, or 2% excluding currency translation.
• Minor pointNine-month operating income increased 7% to $9,887 million, or 5% excluding currency translation.
• Minor pointNine-month net income increased 7% to $6,831 million, or 5% excluding currency translation.
• Minor pointNine-month diluted earnings per share increased 8% to $9.61, or 6% excluding currency translation.
• Minor pointNine-month franchised restaurant revenue increased 5% to $12,887 million year over year.
• Minor pointNine-month company-operated restaurant sales increased 2% to $7,322 million year over year.
• Minor pointNine-month other revenue increased 16% to $565 million year over year.
• Minor pointNine-month other operating income increased to $245 million from $1 million a year earlier.

Negative

• Moderate pointU.S. comparable sales fell 0.2% in third-quarter 2026, versus 2.4% growth a year earlier.
• Minor pointU.S. customer transactions declined in the third quarter, largely offset by higher average spending per transaction.
• Minor pointThird-quarter company-operated restaurant sales decreased 3% to $2,480 million year over year.
• Minor pointPre-tax charges, primarily restructuring, reached $56 million quarterly and $155 million year-to-date, versus $39 million and $148 million.
• Minor pointFrance and China partly offset comparable-sales growth in their respective international segments.

9 minor points

• Minor pointThird-quarter franchised restaurant occupancy expenses increased 3% to $687 million year over year.
• Minor pointThird-quarter other restaurant expenses increased 23% to $167 million year over year.
• Minor pointNine-month franchised restaurant occupancy expenses increased 5% to $2,042 million year over year.
• Minor pointNine-month company-operated restaurant expenses increased 2% to $6,258 million year over year.
• Minor pointNine-month other restaurant expenses increased 17% to $496 million year over year.
• Minor pointNine-month selling, general and administrative other expenses increased 9% to $1,995 million.
• Minor pointNine-month selling, general and administrative depreciation and amortization increased 2% to $340 million.
• Minor pointNine-month interest expense increased 4% to $1,217 million year over year.
• Minor pointNine-month nonoperating results shifted to $4 million expense from $75 million income a year earlier.

Key Figures

Systemwide sales: Over $38 billion, +4% Comparable sales: +1.5% Consolidated revenues: $7,157 million, +1% +5 more

Systemwide sales

Over $38 billion, +4%

Third quarter 2026

Comparable sales

+1.5%

Global, third quarter 2026

Consolidated revenues

$7,157 million, +1%

Third quarter 2026

Operating income

$3,595 million, +7%

Consolidated, third quarter 2026

Diluted EPS

$3.51, +10%

Third quarter 2026

Adjusted diluted EPS

$3.57, +11%

Excluding current-year charges and, for the growth comparison, prior-year charges

Quarterly cash dividend

$1.93 per share, increased 4%

Declared in third quarter 2026

Loyalty-member Systemwide sales

$41 billion

Trailing twelve-month period across 70 loyalty markets

Previous Earnings Reports

2 past events · Latest: Aug 04

Same Type 2 events

1. Aug 04

   Q2 earnings

   24h Move

   +1.2%

   Q2 global comparable sales grew 1.3%, with diluted EPS up 6%.

2. Nov 05

   Q3 earnings

   24h Move

   +2.2%

   Q3 global comparable sales rose 3.6%, and diluted EPS increased 2%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

comparable sales, constant currency

2 terms

comparable sales financial

"Global comparable sales increased 1.5%"

"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 currency financial

"Consolidated revenues increased 1% (1% in constant currencies)."

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

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• Global Systemwide sales* increased 4% to over $38 billion for the quarter
  
  
• Consolidated operating income increased 7% and adjusted operating income increased 8% for the quarter
  
  
• Systemwide sales to loyalty members across 70 loyalty markets were $41 billion for the trailing twelve-month period and more than $11 billion for the quarter

CHICAGO, Nov. 4, 2026 /PRNewswire/ -- McDonald's Corporation today announced results for the third quarter ended September 30, 2026.

"McDonald's delivered another quarter of global growth, with solid performance across much of our international business. In the U.S., we're encouraged by improvement as the quarter progressed following our intervention on value," said Chris Kempczinski, Chairman and CEO. "We're focused on building from here, strengthening the business today and investing in the next chapter of growth."

Third quarter financial performance:

• Global comparable sales increased 1.5%:
  • U.S. decreased 0.2%
  • International Operated Markets increased 1.4%
  • International Developmental Licensed Markets increased 4.2%
• Consolidated revenues increased 1% (1% in constant currencies).
• Systemwide sales increased 4% (4% in constant currencies).
• Consolidated operating income increased 7% (7% in constant currencies). Results reflected pre-tax charges of $56 million and $39 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 8% (8% in constant currencies).**
• Diluted earnings per share was $3.51, an increase of 10% (11% in constant currencies). Excluding the current year charges described above of $0.06 per share, diluted earnings per share was $3.57, an increase of 11% (11% in constant currencies) when also excluding prior year charges.**
• The Company declared a 4% increase in its quarterly cash dividend to $1.93 per share.

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

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

1

COMPARABLE SALES

		Increase/(Decrease)
		Quarters Ended September 30,
		2026		2025
U.S.		(0.2) %		2.4 %
International Operated Markets		1.4		4.3
International Developmental Licensed Markets		4.2		4.7
Total Company		1.5 %		3.6 %

• U.S.: Comparable sales declined slightly as negative comparable guest counts were largely offset by positive check growth.

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

• International Developmental Licensed Markets: All geographic regions reflected positive comparable sales. Positive comparable sales were led by Japan, partly offset by negative comparable sales in China.

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

	Quarters Ended September 30,										Nine Months Ended September 30,
	2026		2025		Inc/ (Dec)			Inc/ (Dec) Excluding Currency Translation			2026		2025		Inc/ (Dec)			Inc/ (Dec) Excluding Currency Translation
Revenues	$   7,157		$   7,078		1	%		1	%		$  20,773		$  19,876		5	%		2	%
Operating income	3,595		3,357		7			7			9,887		9,237		7			5
Net income	2,486		2,278		9			9			6,831		6,399		7			5
Earnings per share-diluted	$    3.51		$    3.18		10	%		11	%		$     9.61		$     8.92		8	%		6	%

Results for 2026 included the following:

• Net pre-tax charges of $56 million, or $0.06 per share, for the quarter and $155 million, or $0.17 per share, for the nine 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:

• Net pre-tax charges of $39 million, or $0.04 per share, for the quarter and $148 million, or $0.16 per share, for the nine months, primarily related to restructuring charges associated with Accelerating the Organization

Excluding the above items, results for the quarter and nine months ended September 30, 2026 were primarily driven by higher Other operating income and higher sales-driven Franchised margins. Results for the nine months were 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 September 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	$  2,486		$  2,278		9	%		9	%		$   3.51		$   3.18		10	%		11	%
(Gains)/Charges, net of tax	43		30								0.06		0.04
Non-GAAP	$  2,529		$  2,308		10	%		10	%		$   3.57		$   3.22		11	%		11	%

	Nine Months Ended September 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	$  6,831		$  6,399		7	%		5	%		$   9.61		$   8.92		8	%		6	%
(Gains)/Charges, net of tax	119		114								0.17		0.16
Non-GAAP	$  6,950		$  6,513		7	%		5	%		$   9.78		$   9.08		8	%		6	%

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 nine months ended September 30, 2026.

McDonald's Corporation will broadcast its investor earnings conference call live over the Internet at 7:30 a.m. (Central Time) on November 4, 2026. A link to the live webcast will be available at 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 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 November 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 September 30,	2026		2025		Inc/ (Dec)
Revenues
Revenues from franchised restaurants	$     4,487		$     4,363		$       124		3 %
Sales by Company-owned and operated restaurants	2,480		2,563		(83)		(3)
Other revenues	189		151		39		26
TOTAL REVENUES	7,157		7,078		79		1
Operating costs and expenses
Franchised restaurants-occupancy expenses	687		666		20		3
Company-owned and operated restaurant expenses	2,088		2,172		(84)		(4)
Other restaurant expenses	167		135		31		23
Selling, general & administrative expenses
Depreciation and amortization	118		121		(2)		(2)
Other	641		664		(23)		(3)
Other operating (income) expense, net	(139)		(37)		(102)		n/m
Total operating costs and expenses	3,561		3,721		(160)		(4)
OPERATING INCOME	3,595		3,357		239		7
Interest expense	408		406		1		—
Nonoperating (income) expense, net	(1)		1		(2)		n/m
Income before provision for income taxes	3,188		2,949		239		8
Provision for income taxes	702		671		31		5
NET INCOME	$     2,486		$     2,278		$       208		9 %
EARNINGS PER SHARE-DILUTED	$      3.51		$      3.18		$      0.33		10 %
Weighted average shares outstanding-diluted	708.3		715.9		(7.6)		(1) %

n/m Not meaningful

5

McDONALD'S CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Dollars and shares in millions, except per share data
Nine Months Ended September 30,	2026		2025		Inc/ (Dec)
Revenues
Revenues from franchised restaurants	$    12,887		$    12,238		$       649		5 %
Sales by Company-owned and operated restaurants	7,322		7,154		168		2
Other revenues	565		485		80		16
TOTAL REVENUES	20,773		19,876		897		5
Operating costs and expenses
Franchised restaurants-occupancy expenses	2,042		1,940		102		5
Company-owned and operated restaurant expenses	6,258		6,109		149		2
Other restaurant expenses	496		424		71		17
Selling, general & administrative expenses
Depreciation and amortization	340		333		7		2
Other	1,995		1,834		161		9
Other operating (income) expense, net	(245)		(1)		(244)		n/m
Total operating costs and expenses	10,885		10,639		246		2
OPERATING INCOME	9,887		9,237		650		7
Interest expense	1,217		1,172		45		4
Nonoperating (income) expense, net	4		(75)		79		n/m
Income before provision for income taxes	8,666		8,140		526		6
Provision for income taxes	1,835		1,740		94		5
NET INCOME	$     6,831		$     6,399		$       432		7 %
EARNINGS PER SHARE-DILUTED	$      9.61		$      8.92		$      0.69		8 %
Weighted average shares outstanding-diluted	711.0		717.2		(6.2)		(1) %

n/m Not meaningful

6

View original content:https://www.prnewswire.com/news-releases/mcdonalds-reports-third-quarter-2026-results-302928424.html

SOURCE McDonald's Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were McDonald's third-quarter 2026 earnings and revenue?

McDonald's reported $3.51 in diluted earnings per share and $7,157 million in revenue for the quarter ended September 30, 2026. Earnings per share increased 10% and revenue increased 1% from a year earlier. Excluding charges, diluted earnings per share were $3.57, up 11%.

How much did McDonald's increase its quarterly dividend in 2026?

McDonald's declared a 4% increase in its quarterly cash dividend to $1.93 per share.

How does McDonald's Systemwide sales measure differ from reported revenue?

Systemwide sales include sales at both company-operated and franchised restaurants, while reported revenue includes company-operated restaurant sales and fees from franchised restaurants. Franchisees' sales are not recorded as McDonald's revenue, but they form the basis for calculating franchised revenue.