McDonald`s Corp
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.75%.
Did MCD Beat Earnings? Q1 2026 Results
McDonald's kicked off 2026 with a confident beat on both top and bottom lines, posting first-quarter earnings per share of $2.83 against a consensus estimate of $2.74, a 3.11% beat, while revenue of $6.52 billion edged past expectations by 0.79% and climbed 9.4% year over year. The headline driver was a broad-based global comparable sales recovery, with worldwide comps rising 3.8% after a negative 1.0% reading in the year-ago period; all three operating segments contributed positively, led by U.S. comps of 3.9% on positive check growth and matching gains in International Operated Markets. Loyalty program momentum added further texture, with systemwide sales to members exceeding $9.00 billion in the quarter alone. A strengthening Euro also provided a $313.00 million favorable currency tailwind. Despite some pre-earnings caution from analysts who had flagged profit growth running below sector peers, the results spoke clearly. Looking ahead, McDonald's targets operating margin in the mid-to-high 40% range for full-year 2026, with approximately 2,600 new restaurant openings and capital expenditures of $3.70 to $3.90 billion.
- Global comparable sales increased 3.8%, with consistently solid growth across all segments
- U.S. comparable sales driven by positive check growth
- International Operated Markets led by U.K., Germany and Australia
- International Developmental Licensed Markets led by Japan
- Higher sales-driven franchised margins across all segments
- Favorable foreign currency translation impact of $313 million on revenues, primarily from strengthening Euro
- Systemwide sales to loyalty members exceeded $9 billion for the quarter across 70 markets
“McDonald's delivered this quarter. Our 6% global Systemwide sales growth shows how we executed with discipline, proving that we can drive results even in a challenging environment. And it's our commitment to going three-for-three that sets McDonald's apart. Our value leadership, breakthrough marketing, and menu innovation continue to serve up what customers want.”
McDonald's CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, McDonald's expects net restaurant unit expansion to contribute approximately 2.5% to Systemwide sales growth in constant currencies. SG&A expenses are expected at about 2.2% of Systemwide sales. Operating margin is expected in the mid-to-high 40% range. Interest expense is expected to increase 4-6% driven by higher average interest rates. The effective income tax rate is expected between 21% and 23%. Capital expenditures are projected at $3.7-$3.9 billion, with approximately 2,600 restaurant openings globally (about 750 in U.S. and International Operated Markets, more than 1,800 by developmental licensees/affiliates) and approximately 2,100 net restaurant additions. Free cash flow conversion rate is expected in the low-to-mid 80% range.
MCD YoY Financials
MCD Revenue by Segment
MCD Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.