MCDONALDS CORP (MCD): Results of Operations and Financial Condition
MCDONALDS CORP (MCD) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT: 8/4/2026 Investors: Dexter Congbalay, investor.relations@us.mcd.com Media: Lauren Altmin, lauren.altmin@us.mcd.com McDONALD'S REPORTS SECOND QUARTER 2026 RESULTS • Global Systemwide sales* increased 5% (4% in consta
How this was made
The 30-second read
Why it matters
Traders can use the disclosed GAAP net income and diluted EPS, the quantified foreign-currency translation benefit, and the stated restructuring charges to assess earnings quality and the durability of franchised-margin strength.
Market read
Provides concrete earnings datapoints and reconciliation items (FX translation, restructuring charges, dividends and buybacks) that can affect near-term positioning around earnings quality and cash return expectations.
What to watch
Investors may underweight the earnings quality angle: the magnitude of restructuring charges and the split between franchised versus company-owned margin drivers could matter more than headline net income/EPS.
McDonald's reported 4% revenue growth, 5% GAAP net-income growth and 6% diluted EPS growth for the quarter ended June 30, 2026, supported by international growth and a positive foreign currency translation impact.
Quarterly revenue increased 4%, GAAP net income increased 5% and GAAP diluted earnings per share increased 6%. Comparable sales increased across all operating segments, while U.S. company-owned and operated sales declined 1% and restructuring charges continued.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total RevenuesGAAP | $7,099 million | – | 4 % |
| Total Revenues excluding currency translationother | $7,099 million | – | 2 % |
| Franchised revenuesGAAP | $4,393 million | – | 4 % |
| Company-owned and operated salesGAAP | $2,525 million | – | 3 % |
| Other revenuesGAAP | $182 million | – | 6 % |
| Franchised marginsGAAP | $3,713 million | – | – |
| Company-owned and operated marginsGAAP | $387 million | – | – |
| Selling, general & administrative expensesGAAP | $817 million | – | – |
| Operating incomeGAAP | $3,338 million | – | – |
| Net incomeGAAP | $2,362 million | – | 5% |
| Diluted earnings per shareGAAP | $3.32 | – | 6% |
| Net incomenon-GAAP | $2,402 million | – | 5 % |
| Diluted earnings per sharenon-GAAP | $3.38 | – | 6 % |
| Total Company comparable salesother | 1.3 % | – | – |
| Total Company Systemwide sales growthother | 5 % | – | – |
| Total Company Systemwide sales growth excluding currency translationother | 4 % | – | – |
| Six Months Total RevenuesGAAP | $13,616 million | – | 6 % |
| Six Months Franchised marginsGAAP | $7,044 million | – | – |
| Six Months Company-owned and operated marginsGAAP | $672 million | – | – |
| Six Months Selling, general & administrative expensesGAAP | $1,576 million | – | – |
| Six Months operating incomeGAAP | $6,292 million | – | – |
| Six Months net incomeGAAP | $4,345 million | – | 5% |
| Six Months diluted earnings per shareGAAP | $6.10 | – | 6% |
| Six Months net incomenon-GAAP | $4,421 million | – | 5 % |
| Six Months diluted earnings per sharenon-GAAP | $6.21 | – | 6 % |
| Six Months Total Company comparable salesother | 2.5 % | – | – |
| Six Months Total Company Systemwide sales growthother | 8 % | – | – |
| Six Months Total Company Systemwide sales growth excluding currency translationother | 5 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. franchised revenuesU.S. comparable sales increased 0.8 %. | $1,942 million | – | 2 % |
| International Operated Markets franchised revenuesInternational Operated Markets comparable sales increased 1.5 %, and reported growth included a positive foreign currency translation impact. | $1,936 million | – | 5 % |
| International Developmental Licensed Markets & Corporate franchised revenuesInternational Developmental Licensed Markets comparable sales increased 1.9 %, and reported growth included a positive foreign currency translation impact. | $515 million | – | 9 % |
| U.S. company-owned and operated salesU.S. comparable sales increased 0.8 %. | $784 million | – | (1) % |
| International Operated Markets company-owned and operated salesInternational Operated Markets comparable sales increased 1.5 %, and reported growth included a positive foreign currency translation impact. | $1,607 million | – | 3 % |
| International Developmental Licensed Markets & Corporate company-owned and operated salesInternational Developmental Licensed Markets comparable sales increased 1.9 %, and reported growth included a positive foreign currency translation impact. | $133 million | – | 30 % |
Capital returns
- During the quarter, the Company paid a dividend of $1.86 per share, or $1.3 billion.
- Total dividends paid for the six months were $2.6 billion.
- During the quarter, the Company repurchased 3.0 million shares of stock for $858 million.
- Total purchases for the six months were 4.2 million shares, or $1.3 billion.
What drove it
- Total Franchised revenues and Company-owned and operated sales increased 4% (2% in constant currencies) for the quarter.
- Positive franchised sales performance occurred across all segments.
- The International Operated Markets and the International Developmental Licensed Markets benefited from the positive impact of foreign currency translation and positive Company-owned and operated sales performance.
- Results excluding the identified charges were primarily driven by higher sales-driven Franchised margins and higher Other operating income.
Concerns
- U.S. company-owned and operated sales decreased (1) %.
- Selling, general & administrative expenses were $817 million, compared with $700 million.
- The Company recorded net pre-tax charges of $52 million, or $0.06 per share, primarily related to restructuring charges associated with Accelerating the Organization.
- Management expects to continue to incur various restructuring charges through its anticipated completion during 2027.
What to watch
- Comparable sales in the U.S., which increased 0.8 % in the quarter.
- International comparable sales, which increased 1.5 % in International Operated Markets and 1.9 % in International Developmental Licensed Markets.
- Foreign currency translation, which provided a $116 million benefit to quarterly revenues and a $0.03 positive impact on quarterly diluted earnings per share.
- Selling, general & administrative expenses and restructuring charges associated with Accelerating the Organization.
- Restaurant development and the Company’s Global Business Services strategy under Accelerating the Organization.
Analysis
McDonald's generated $7,099 million of quarterly revenue, up 4 %, while total revenue growth was 2 % excluding currency translation. GAAP net income rose 5% to $2,362 million and GAAP diluted earnings per share increased 6% to $3.32. Non-GAAP net income was $2,402 million and non-GAAP diluted earnings per share was $3.38 after excluding gains and charges, net of tax.
The revenue result was led by franchised revenues of $4,393 million, up 4 %, alongside company-owned and operated sales of $2,525 million, up 3 %. International Operated Markets franchised revenues increased 5 % and International Developmental Licensed Markets & Corporate franchised revenues increased 9 %. U.S. franchised revenues increased 2 %, but U.S. company-owned and operated sales decreased (1) %.
Comparable sales increased 1.3 % for the Total Company. The U.S. increased 0.8 %, International Operated Markets increased 1.5 %, and International Developmental Licensed Markets increased 1.9 %. Systemwide sales increased 5 %, or 4 % excluding currency translation. Foreign currency translation benefited quarterly revenue by $116 million, operating income by $50 million, net income by $23 million and diluted earnings per share by $0.03.
Profit growth reflected higher sales-driven Franchised margins and higher Other operating income, partly offset by higher Selling, general & administrative expenses. Franchised margins were $3,713 million, company-owned and operated margins were $387 million, and selling, general & administrative expenses were $817 million. The Company also recorded net pre-tax charges of $52 million, or $0.06 per share, primarily related to Accelerating the Organization.
Capital allocation included a quarterly dividend of $1.86 per share, or $1.3 billion, and repurchases of 3.0 million shares for $858 million. The supplied filing text identifies an Outlook section in the exhibit index, but the provided text does not include its contents. As a result, no forward guidance figures can be reported or compared with actual results.
Not in the filing
stated, not guessed- Forward guidance figures from the Outlook section, which is not included in the provided filing text
- Prior outlook for comparison with actual results
- Gross margin
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Quarterly franchised sales table, which is truncated from the provided filing text
- Restaurant margins detail table, which is not included in the provided filing text
- Other operating income detail
- Interest expense
- Nonoperating income or expense
- Income taxes
- Named executive quotations
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K Item 2.02 with Exhibit 99.2 supplemental information for McDonald's quarter and six months ended June 30, 2026, including constant-currency reconciliations and restructuring context.
Ticker impact
McDonald's 8-K (Exhibit 99.2) reports quarter and six-month results for June 30, 2026, including net income, EPS, and constant-currency discussion.
Near-term bias modestly positive if investors focus on reported net income and EPS growth, but magnitude may be tempered by restructuring-charge disclosures and constant-currency framing.
The text includes specific reported figures (net income, diluted EPS) and quantifies currency translation effects and restructuring charges, which can influence earnings quality and forward expectations, though it is not a guidance update in the provided excerpt.
Market effects
Reinforces that large QSR franchisors can show stable earnings drivers via franchised margins, while restructuring and FX remain key swing factors.
FX translation benefit is attributed to strengthening Euro and Australian Dollar versus USD, highlighting sensitivity for international revenue streams.
Shows how multinational currency movements and hedging practices affect reported profitability for global consumer brands.
Counterpoint
Reported growth may overstate underlying momentum because the filing emphasizes constant-currency results and includes restructuring charges tied to internal modernization.
Key entities
- companyMcDonald's Corporation
Subject issuer filing supplemental results for the quarter and six months ended June 30, 2026, including FX translation impacts and restructuring charges.
