10-QPeriod: Q1 FY2026

MCDONALDS CORP Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 7, 2026For Securities:MCD

Summary

McDonald's Corporation reported solid financial results for the first quarter of 2026, showcasing robust revenue growth and improved profitability. Total revenues increased by 9% to $6.5 billion, driven by strong performance in both franchised and company-owned restaurants. Diluted earnings per share rose by 7% to $2.78, reflecting effective operational strategies and strategic growth initiatives. The company continues to execute its "Accelerating the Arches" strategy, focusing on maximizing marketing, committing to core menu items, and doubling down on digital, delivery, drive-thru, and restaurant development. This strategy is supported by significant investments in technology and modernization efforts aimed at enhancing customer experience and operational efficiency. Despite ongoing restructuring charges related to "Accelerating the Organization," the underlying business trends remain positive, demonstrating resilience and adaptability in a dynamic market.

Financial Highlights

50 data points
Beta

Revenue

$6.52B

89.6% Gross Margin

Net Income

$1.98B

30.4% Net Margin

EPS (Diluted)

$2.78

Total Assets

$60.04B

Cash & Equivalents

$1.17B

Free Cash Flow

$1.73B

Financial Statements
Beta
Revenue$6.52B
Cost of Revenue$676.00M
Gross Profit$5.84B
SG&A Expenses$759.00M
Operating Expenses$3.56B
Operating Income$2.95B
Interest Expense$400.00M
Net Income$1.98B
EPS (Basic)$2.79
EPS (Diluted)$2.78
Shares Outstanding (Basic)711
Shares Outstanding (Diluted)714

Key Highlights

  • 1Total revenues increased by 9% to $6.5 billion in Q1 2026 compared to Q1 2025.
  • 2Diluted earnings per share (EPS) grew by 7% to $2.78 in Q1 2026.
  • 3Global comparable sales increased by 3.8%, with particular strength in the U.S. and International Operated Markets.
  • 4The company is accelerating restaurant development, planning to open approximately 2,600 new restaurants in 2026, contributing to a targeted 4.5% net unit growth.
  • 5Restructuring charges related to "Accelerating the Organization" were $47 million, down from $66 million in the prior year's comparable quarter.
  • 6Systemwide sales saw an 11% increase (6% in constant currencies), indicating strong overall brand performance.
  • 7Capital expenditures for 2026 are projected to be between $3.7 and $3.9 billion, primarily focused on new restaurant unit expansion.

Frequently Asked Questions

Revenue growth was primarily driven by a 9% increase in revenues from franchised restaurants and a 9% increase in sales from company-owned and operated restaurants. This growth was supported by strong comparable sales increases across all segments, notably the U.S. and International Operated Markets, and favorable foreign currency translation.

The company continues to execute its 'Accelerating the Arches' strategy, which focuses on key growth pillars: maximizing marketing, committing to the core menu, and doubling down on digital, delivery, drive-thru, and restaurant development. This is evidenced by accelerated restaurant openings, continued investment in digital platforms, and refinements to the core menu and operational efficiencies. The strategy is designed to enhance customer experience and drive long-term growth.

McDonald's plans to accelerate restaurant openings in 2026, targeting approximately 2,600 new restaurants globally, which is expected to result in over 4.5% net restaurant unit growth. The company is on track to expand to 50,000 restaurants by the end of 2027, marking the fastest period of unit growth in its history.

The company incurred $47 million in restructuring charges in the first quarter of 2026 related to its 'Accelerating the Organization' initiative, a decrease from $66 million in the prior year. These charges are recorded in 'Other operating (income) expense, net.' While they impact reported net income, the underlying business performance, excluding these charges, shows continued growth and operational improvements.