01—Abstract
Summary
Summary of the 8-K filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
McDonald's reported first quarter 2026 results that were strong on the top line and operating line, with global comparable sales up 3.8% and Systemwide sales up 11% (6% in constant currencies) to over $34 billiona.
U.S. comparable sales rose 3.9%, driven primarily by positive check growth, reversing a 3.6% decline a year earlier. International Operated Markets (+3.9%) and International Developmental Licensed Markets (+3.4%) also posted solid comps, with broad-based growth across geographies. Consolidated revenues rose 9% to $6.52 billionb (4% in constant currencies), and operating income grew 12% to $2.95 billion (6% in constant currencies).
Excluding restructuring-related charges of $47 millionc (versus $66 million a year earlier) tied to the Accelerating the Organization initiative, operating income rose 11%. Diluted EPS was $2.78, up 7% (2% in constant currencies); excluding charges, EPS was $2.83, up 6%. The gap between reported and constant-currency growth was largely a favorable currency translation tailwind, notably from the euro, and the effective tax rate rose to 22.0% from 19.8%, partly offsetting operating gains.
The company reaffirmed or set 2026 guidance, including net restaurant unit expansion contributing about 2.5% to Systemwide sales growth in constant currencies, an operating margin in the mid-to-high 40% range, a 21%–23% effective tax rate, capex of $3.7d–$3.9 billion, roughly 2,100 net restaurant additions, and a free cash flow conversion rate in the low-to-mid 80% range. Interest expense is expected to rise 4%–6%. Investors should note that the quarter's gains were partly supported by a weaker dollar and higher gains on restaurant sales and property, and that restructuring charges will continue through 2027.
02—Key points
Key Highlights
- Global comparable sales rose 3.8%, with U.S. comps up 3.9% (primarily check-driven) after a 3.6% decline in the prior-year quarter.
- Systemwide sales increased 11% to over $34 billion (6% in constant currencies), with International Operated Markets up 16% (6% in constant currencies).
- Consolidated revenues grew 9% to $6.52 billion (4% in constant currencies); operating income rose 12% to $2.95 billion (11% excluding charges).
- Diluted EPS of $2.78 rose 7%; excluding $0.05 per share of restructuring charges, EPS was $2.83, up 6% (1% in constant currencies).
- Non-GAAP operating margin reached 46.0% versus 45.6% a year earlier, supported by higher sales-driven franchised margins and other operating income.
- Company reaffirmed 2026 outlook: ~2,100 net restaurant additions, operating margin in the mid-to-high 40% range, and FCF conversion in the low-to-mid 80% range.
- Effective tax rate increased to 22.0% from 19.8%, and interest expense is expected to rise 4%–6% in 2026, both modest headwinds to earnings growth.
03—Questions
Frequently Asked Questions
What drove McDonald's first quarter 2026 comparable sales growth?
U.S. comparable sales growth of 3.9% was primarily driven by positive check growth, meaning higher average spend per transaction from pricing and product mix rather than traffic alone. International Operated Markets grew 3.9%, led by the U.K., Germany and Australia, while International Developmental Licensed Markets grew 3.4%, led by Japan.
How much of the earnings growth came from currency versus underlying business performance?
Currency translation was a meaningful tailwind. Diluted EPS grew 7% reported but only 2% in constant currencies, with foreign currency adding $0.13 per share. Net income rose 6% reported versus 1% in constant currencies. Investors should weigh constant-currency figures more heavily when judging underlying momentum.
Are restructuring charges affecting the company's results, and will they continue?
Yes. Pre-tax charges were $47 million in Q1 2026 (about $0.05 per share), down from $66 million a year earlier, primarily related to the Accelerating the Organization initiative. The company expects to incur restructuring charges through its anticipated completion in 2027, so further charges should be expected over the coming quarters.
What is the outlook for 2026 and does the quarter change it?
The company's guidance points to net restaurant expansion contributing about 2.5% to Systemwide sales growth in constant currencies, SG&A around 2.2% of Systemwide sales, operating margin in the mid-to-high 40% range, and capex of $3.7–$3.9 billion. The Q1 release presents this outlook as based on current conditions, and the quarter's results are broadly consistent with it, though the filing does not provide a formal guidance revision.
04—Continue