Quarter Ended June 30, 2026
Filed Aug 4, 2026McDonald'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
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total RevenuesGAAP | $7.10B | – | 4 % |
| Total Revenues excluding currency translationother | $7.10B | – | 2 % |
| Franchised revenuesGAAP | $4.39B | – | 4 % |
| Company-owned and operated salesGAAP | $2.52B | – | 3 % |
| Other revenuesGAAP | $182M | – | 6 % |
| Franchised marginsGAAP | $3.71B | – | – |
| Company-owned and operated marginsGAAP | $387M | – | – |
| Selling, general & administrative expensesGAAP | $817M | – | – |
| Operating incomeGAAP | $3.34B | – | – |
| Net incomeGAAP | $2.36B | – | 5% |
| Diluted earnings per shareGAAP | $3.32 | – | 6% |
| Net incomenon-GAAP | $2.40B | – | 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 | $13.62B | – | 6 % |
| Six Months Franchised marginsGAAP | $7.04B | – | – |
| Six Months Company-owned and operated marginsGAAP | $672M | – | – |
| Six Months Selling, general & administrative expensesGAAP | $1.58B | – | – |
| Six Months operating incomeGAAP | $6.29B | – | – |
| Six Months net incomeGAAP | $4.34B | – | 5% |
| Six Months diluted earnings per shareGAAP | $6.10 | – | 6% |
| Six Months net incomenon-GAAP | $4.42B | – | 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 %. | $1.94B | – | 2 % |
| International Operated Markets franchised revenuesInternational Operated Markets comparable sales increased 1.5 %, and reported growth included a positive foreign currency translation impact. | $1.94B | – | 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. | $515M | – | 9 % |
| U.S. company-owned and operated salesU.S. comparable sales increased 0.8 %. | $784M | – | (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. | $1.61B | – | 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. | $133M | – | 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
AlphAI 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.