McDonald's (MCD) Q1 2026 Earnings
How Did MCD Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +0.75%.
Did MCD Beat Earnings? Q1 2026 Results
Yes. McDonald's reported Q1 2026 earnings of $2.83 a share on May 7, 2026, beating the $2.74 consensus estimate by 3.1%. Revenue was $6.5B against a $6.5B estimate.
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
What Was McDonald's's Outlook in Q1 2026?
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
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $6.5B | $6.0B | +9.4% |
| Gross Profit | $3.6B | $3.3B | +8.4% |
| Operating Income | $3.0B | $2.6B | +11.5% |
| Net Income | $2.0B | $1.9B | +6.2% |
MCD Revenue by Segment
MCD Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.