McDonald's Holdings Company (Japan) (2702) investor relations material

Executive summary

• System-wide sales reached a record high of 888.6B yen, up 7.2% year-over-year, with same-store sales increasing for the 41st consecutive quarter, driven by growth strategies, enhanced restaurant experiences, and operational efficiency.

• Operating income rose 10.9% to 53.2B yen, with the operating income ratio improving to 12.8%.

• Net income grew 6.1% to 33.9B yen, exceeding both the previous year and earnings forecasts.

• Opened 120 new restaurants, closed 83, and remodeled 220 locations to optimize the portfolio and improve profitability.

• Launched My McDonald's Rewards loyalty program and expanded digital ordering and delivery services.

Financial highlights

• Revenue/net sales increased 2.7% year-over-year to 416.6B yen.

• Ordinary income rose 9.8% to 52.0B yen.

• Gross profit improved to 86.6B yen; cost-of-sales ratio for company-operated restaurants dropped 0.4 percentage points.

• Comprehensive income reached 33.96B yen, up 6.3% year-over-year.

• 120 new restaurants opened, bringing the total to 3,025.

Outlook and guidance

• FY2026 system-wide sales are forecast to rise 6.0% to 942.0B yen.

• Operating income is projected to increase 2.3% to 54.5B yen, with the operating income ratio improving to 13.4%.

• Net income is expected to grow 1.7% to 34.5B yen.

• Dividend per share planned to increase to 64 yen for 2026, with a target dividend on equity of 3% by 2027.

• Continued cost pressures, especially from material costs, are anticipated.