01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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.
02—Key points
Key Highlights
- Total revenues increased by 9% to $6.5 billion in Q1 2026 compared to Q1 2025.
- Diluted earnings per share (EPS) grew by 7% to $2.78 in Q1 2026.
- Global comparable sales increased by 3.8%, with particular strength in the U.S. and International Operated Markets.
- The company is accelerating restaurant development, planning to open approximately 2,600 new restaurants in 2026, contributing to a targeted 4.5% net unit growth.
- Restructuring charges related to "Accelerating the Organization" were $47 million, down from $66 million in the prior year's comparable quarter.
- Systemwide sales saw an 11% increase (6% in constant currencies), indicating strong overall brand performance.
- Capital expenditures for 2026 are projected to be between $3.7 and $3.9 billion, primarily focused on new restaurant unit expansion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, McDonalds Corp kept $0.30.
- Revenue$6.52B100.0%
- Cost of revenue−$676.0M10.4%
- Gross profit$5.84B89.6%
- Operating costs−$2.89B44.3%
- Operating income$2.95B45.3%
- Interest, other & tax−$970.0M14.9%
- Net income$1.98B30.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $6.52B$5.96B | +9.4% |
| Cost of Revenue | $676.00M$620.00M | +9.0% |
| Gross Profit | $5.84B$5.34B | +9.5% |
| SG&A Expenses | $759.00M$682.00M | +11.3% |
| Operating Expenses | $3.56B$3.31B | +7.7% |
| Operating Income | $2.95B$2.65B | +11.5% |
| Interest Expense | $400.00M$376.00M | +6.4% |
| Net Income | $1.98B$1.87B | +6.2% |
| EPS (Basic) | $2.79$2.61 | +6.9% |
| EPS (Diluted) | $2.78$2.60 | +6.9% |
| Shares Outstanding (Basic) | 711715 | −0.6% |
| Shares Outstanding (Diluted) | 714718 | −0.7% |
05—Questions
Frequently Asked Questions
What was the primary driver of revenue growth in the first quarter of 2026?
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.
How is McDonald's progressing with its 'Accelerating the Arches' strategy?
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.
What is the outlook for restaurant development in 2026?
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.
How are restructuring charges impacting the company's financials?
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.
06—Continue