10-QPeriod: Q2 FY2026

MCDONALDS CORP Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 7, 2026For Securities:MCD

Summary

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 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 and healthy cash flow generation, providing resources for strategic investments, dividends, and share repurchases.

Key Highlights

  • 1Revenue growth of 4% (2% constant currency) for the quarter and 6% (3% constant currency) for the six months, indicating broad-based sales expansion.
  • 2Net income increased by 5% to $2,362 million for the quarter and $4,345 million for the six months, demonstrating improved profitability.
  • 3Diluted EPS rose to $3.32 for the quarter and $6.10 for the six months, reflecting enhanced shareholder value.
  • 4Comparable 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.
  • 5The 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.
  • 6Ongoing investment in strategic initiatives like "McDonald's > NEXT" and "Accelerating the Organization" continues, with restructuring charges noted, aimed at long-term growth and efficiency.
  • 7Total 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.

Frequently Asked Questions

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.

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.

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.

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.