McDonald's Holdings Company (Japan) (2702) Q1 2026 earnings summary

Executive summary

• System-wide sales and same-store sales grew for the 42nd consecutive quarter, driven by menu innovation, marketing, digital initiatives, and ongoing operational improvements.

• Profitability improved significantly, with operating income up 39.3% and net income up 44.4% year-over-year, reflecting higher sales and efficient operations.

• Restaurant portfolio optimization, remodeling, and digitalization efforts are progressing as planned, supporting sales and operational efficiency.

• Continued progress on medium-term management plan focusing on Menu & Value, Restaurant Portfolio & Digital, and Sustainability & People.

Financial highlights

• System-wide sales reached ¥234.0B, up 9.2% year-over-year; same-store sales rose 7.3%.

• Net sales for Q1 2026 were ¥103,968 million, up 2.7% year-over-year.

• Operating income was ¥16.6B (16.0% margin), up 39.3% year-over-year.

• Net income attributable to owners was ¥11.0B, up 44.4% year-over-year.

• Gross profit margin improved as cost of sales ratio decreased from 80.0% to 76.3%.

Outlook and guidance

• Full-year FY2026 forecast remains unchanged amid geopolitical and energy supply uncertainties.

• System-wide sales for FY2026 projected at ¥942.0B (+6.0% year-over-year); operating income forecast at ¥54.5B (+2.3%).

• Net income for FY2026 expected to reach ¥34.5B (+1.7% year-over-year); EPS forecast at ¥259.48.

• Dividend forecast for 2026 is ¥64 per share, unchanged from previous guidance.