McDonald's (MCD) Q1 2026 Financial Results Summary

Release Date: May 7, 2026

McDonald's Corporation has reported its financial results for the first quarter of 2026, which ended on March 31. The report highlights various metrics that underline the company’s performance amidst a challenging business environment.

Key Financial Highlights:

• Global Comparable Sales: Increased by 3.8% compared to Q1 2025.
  • U.S. Market: Growth of 3.9% (up from a decline of 3.6% in Q1 2025).
  • International Operated Markets: Growth of 3.9% (up from a decline of 1.0%).
  • International Developmental Licensed Markets: Increased by 3.4% (down from 3.5%).
• Global Systemwide Sales: Increased by 11% (or 6% in constant currencies) to exceed $34 billion for the quarter.
• Sales to Loyalty Members: Over $38 billion in the trailing twelve-month period and over $9 billion for the quarter, across 70 loyalty markets.
• Consolidated Revenues: Increased by 9% (or 4% in constant currencies) to $6.517 billion.
• Consolidated Operating Income: Increased by 12% (or 6% in constant currencies) to $2.953 billion.
  • Excluding pre-tax charges from the current and prior year, operating income increased by 11% (or 5% in constant currencies).
• Net Income: Increased by 6% to $1.983 billion.
• Earnings Per Share (EPS): Diluted EPS reached $2.78, up 7% (or 2% in constant currencies).
  • Excluding the current year's charges of $0.05 per share, EPS would have been $2.83, reflecting an increase of 6% (or 1% without constant currency adjustments).

Operational Insights:

• Customer Trends: Positive comparable sales were primarily driven by a favorable growth in average check size, with success seen across several geographic segments.
• U.S. Performance: A notable recovery in comparable sales as a result of robust customer demand.
• International Achievements: Strong sales growth reported across most international markets, particularly the U.K., Germany, and Australia.

Costs and Expenses:

• Operating Costs: Increased by 8% year-over-year.
• Effective Tax Rate: Increased effective tax rates noted, partially offsetting the sales-driven rise in franchise margins.

Pre-tax Charges:

The results included pre-tax restructuring charges amounting to $47 million for the current quarter and $66 million for the same quarter last year.

Shareholder Returns:

No quarterly dividend or share repurchase activities were mentioned in this report.

Summary of Q1 2026 vs Q1 2025:

• Revenue Growth:
  • 2026: $6.517 billion
  • 2025: $5.956 billion
• Operating Income Growth:
  • 2026: $2.953 billion
  • 2025: $2.648 billion
• Net Income Growth:
  • 2026: $1.983 billion
  • 2025: $1.868 billion
• EPS Comparison:
  • 2026: $2.78
  • 2025: $2.60

Conclusion:

McDonald's Q1 2026 results reflect a solid overall performance, showcasing growth in sales and profitability despite faced challenges. The commitment to value leadership and innovation in marketing has highlighted McDonald's ability to engage customers effectively. This strategic approach, along with growth across international markets, positions the company favorably as it moves forward into the upcoming quarters.

For further details and updates, McDonald’s encourages stakeholders to visit their Investor Relations page.

CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

Dollars and shares in millions, except per share data

Note: All amounts are in thousands.

Quarters Ended March 31,	2026	2025	Inc/ (Dec)
Revenues
Revenues from franchised restaurants	$4,007	$3,661	$345 9%
Sales by Company-owned and operated restaurants	$2,317	$2,132	$185 9%
Other revenues	$193	$162	$31 19%
TOTAL REVENUES	$6,517	$5,956	$561 9%
Operating costs and expenses
Franchised restaurant expenses	$676	$620	$56 9%
Company-owned and operated restaurant expenses	$2,032	$1,859	$173 9%
Other restaurant expenses	$166	$140	$26 19%
Selling, general & administrative expenses	$111	$107	$4 3%
Depreciation and amortization	$648	$575	$73 13%
Other operating (income) expense, net	-69	7	-76 n/m
Total operating costs and expenses	$3,564	$3,308	$256 8%
OPERATING INCOME	$2,953	$2,648	$305 12%
Interest expense	$400	$376	$24 6%
Nonoperating (income) expense, net	$11	-57	$69 n/m
Income before provision for income taxes	$2,542	$2,330	$212 9%
Provision for income taxes	$559	$461	$98 21%
NET INCOME	$1,983	$1,868	$115 6%
EARNINGS PER SHARE-DILUTED	$2.78	$2.60	$0.18 7%
Weighted average shares outstanding	713.5	718.2	-4.7 -1%

n/m Not meaningful

CONDENSED CONSOLIDATED BALANCE SHEETS

Note: All amounts are in thousands.

	2026	2025	Inc/(Dec)
ASSETS
Current assets
Cash and cash equivalents	$3,543	$3,828	$(285) (-7%)
Accounts receivable	$1,457	$1,382	$75 5%
Inventories	$275	$226	$49 22%
Prepaid expenses and other current assets	$874	$877	$(3) (-1%)
Total current assets	$6,149	$6,313	$(164) (-3%)
Noncurrent assets
Property and equipment, net	$37,252	$36,181	$1,071 3%
Goodwill and other intangibles	$2,685	$2,699	$(14) (-1%)
Other noncurrent assets	$492	$563	$(71) (-13%)
Total noncurrent assets	$40,429	$39,443	$986 2%
TOTAL ASSETS	$46,578	$45,756	$822 2%
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$3,109	$2,968	Disclaimer The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.