McDonald’s (MCD) Q1 2026 earnings summary

Executive summary

• Global system-wide sales grew 11% (6% in constant currency) to over $34 billion, with global comparable sales up 3.8% year-over-year, driven by growth across all segments and market share gains in nearly all top 10 markets.

• Strategic focus on value, marketing, and menu innovation—"three-for-three execution"—continues to drive performance, with notable success in Australia, the U.K., Germany, and Japan.

• Loyalty program sales exceeded $9 billion for the quarter and $38 billion for the trailing twelve months across 70 markets.

• Value leadership reinforced through new U.S. McValue menu (items under $3) and $4 breakfast meal deal, mirroring successful international approaches.

• Marketing campaigns, including partnerships with Netflix and major film releases, and menu innovation (notably in beverages), contributed to customer engagement and traffic.

Financial highlights

• Consolidated revenues grew 9% year-over-year to $6.52 billion, with operating income up 12% to $2.95 billion; net income rose 6% to $1.98 billion.

• Adjusted EPS reached $2.83, including a $0.13 benefit from foreign currency translation; diluted EPS was $2.78, up 7% year-over-year.

• Restaurant margins exceeded $3.6 billion, with an adjusted operating margin of 46%.

• U.S. comparable sales grew 3.9% year-over-year, with positive guest count gaps and maintained market share.

• International Operated Markets and International Developmental Licensed Markets delivered comparable sales growth of 3.9% and 3.4%, respectively.

Outlook and guidance

• Full-year 2026 financial targets reaffirmed, with net restaurant unit expansion expected to contribute ~2.5% to Systemwide sales growth and capital expenditures forecasted between $3.7 and $3.9 billion for ~2,600 new restaurants.

• 2026 operating margin projected in the mid-to-high 40% range; SG&A expenses expected at about 2.2% of Systemwide sales.

• Effective income tax rate for 2026 expected between 21% and 23%.

• Q2 expected to see a meaningful deceleration in comp sales due to a tough comparison with last year’s Minecraft promotion, but underlying momentum remains strong.

• Continued focus on value, menu innovation, and marketing, with new beverage launches and FIFA partnership anticipated to drive performance.