What were the key drivers of revenue growth in the second quarter and first half of 2026?

Revenue growth was driven by increases in both franchised restaurant revenues and sales by company-owned and operated restaurants. The U.S. and International Operated Markets segments showed particular strength in franchised revenues, while International Operated Markets also benefited from positive company-owned sales performance and foreign currency translation effects.

How is McDonald's managing its strategic transformation efforts and associated costs?

McDonald's is executing its "McDonald's > NEXT" strategy, which focuses on menu, consumer, restaurant, and people. The "Accelerating the Organization" initiative, aimed at modernizing ways of working, incurred restructuring charges of $98 million for the six months ended June 30, 2026. The company expects the remaining balance of these restructuring charges to be paid out over the next twelve months, and anticipates approximately $250 million in restructuring charges for the full year 2026.

What is the company's outlook for systemwide sales and restaurant expansion in 2026?

McDonald's anticipates net restaurant unit expansion to contribute approximately 2.5% to 2026 Systemwide sales growth in constant currencies. The company expects to open approximately 2,600 restaurants globally in 2026, with a net addition of about 2,100 units, targeting 50,000 global units by 2028.

How did foreign currency exchange rates impact the financial results?

Foreign currency translation had a positive impact on reported results. For the quarter, it contributed $0.03 to diluted earnings per share, and for the six months, it contributed $0.17. Overall revenues were positively affected by a strengthening of major currencies against the U.S. Dollar, primarily the Euro and Australian Dollar.

MCD 10-Q Quarterly Report Q2 FY2026 — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-Q filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.

McDonald's Corporation reported solid financial results for the quarter and six months ended June 30, 2026.

Total revenues increased by 4% (2% in constant currencies) for the quarter and 6% (3% in constant currencies) for the six months, driven by growth in both franchised and company-owned restaurant sales. Net income saw a 5% increase for both periods, reaching $2,362 million^a and $4,345 million, respectively. Diluted earnings per share also demonstrated growth, rising to $3.32 for the quarter and $6.10 for the six months.

The company continues to execute its "McDonald's > NEXT" strategy, focusing on menu innovation, consumer engagement, restaurant efficiency, and people development. This is reflected in comparable sales growth across its segments, though with varying contributions and some offsetting factors like negative comparable guest counts in the U.S. The company also maintained a strong balance sheet with total assets of $59.9 billion^b and healthy cash flow generation, providing resources for strategic investments, dividends, and share repurchases.

02—Key points

Key Highlights

Revenue growth of 4% (2% constant currency) for the quarter and 6% (3% constant currency) for the six months, indicating broad-based sales expansion.
Net income increased by 5% to $2,362 million for the quarter and $4,345 million for the six months, demonstrating improved profitability.
Diluted EPS rose to $3.32 for the quarter and $6.10 for the six months, reflecting enhanced shareholder value.
Comparable sales showed positive growth across all segments, with total company comparable sales up 1.3% for the quarter and 2.5% for the six months, despite some markets facing challenges.
The company is actively returning capital to shareholders, with dividends paid totaling $2.6 billion for the six months and $1.3 billion in share repurchases during the same period.
Ongoing investment in strategic initiatives like "McDonald's > NEXT" and "Accelerating the Organization" continues, with restructuring charges noted, aimed at long-term growth and efficiency.
Total assets stood at $59.9 billion as of June 30, 2026, with shareholders' equity (deficit) improving to $(1,023) million from $(1,791) million at year-end 2025.

03—Questions

Frequently Asked Questions

What were the key drivers of revenue growth in the second quarter and first half of 2026?
Revenue growth was driven by increases in both franchised restaurant revenues and sales by company-owned and operated restaurants. The U.S. and International Operated Markets segments showed particular strength in franchised revenues, while International Operated Markets also benefited from positive company-owned sales performance and foreign currency translation effects.
How is McDonald's managing its strategic transformation efforts and associated costs?
McDonald's is executing its "McDonald's > NEXT" strategy, which focuses on menu, consumer, restaurant, and people. The "Accelerating the Organization" initiative, aimed at modernizing ways of working, incurred restructuring charges of $98 million for the six months ended June 30, 2026. The company expects the remaining balance of these restructuring charges to be paid out over the next twelve months, and anticipates approximately $250 million in restructuring charges for the full year 2026.
What is the company's outlook for systemwide sales and restaurant expansion in 2026?
McDonald's anticipates net restaurant unit expansion to contribute approximately 2.5% to 2026 Systemwide sales growth in constant currencies. The company expects to open approximately 2,600 restaurants globally in 2026, with a net addition of about 2,100 units, targeting 50,000 global units by 2028.
How did foreign currency exchange rates impact the financial results?
Foreign currency translation had a positive impact on reported results. For the quarter, it contributed $0.03 to diluted earnings per share, and for the six months, it contributed $0.17. Overall revenues were positively affected by a strengthening of major currencies against the U.S. Dollar, primarily the Euro and Australian Dollar.

04—Continue

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