McDonald’s (MCD) Q1 2026 earnings summary

Executive summary

• Global comparable sales rose 3.8% year-over-year, with all segments contributing to growth, led by the U.S., U.K., Germany, Australia, and Japan.

• Systemwide sales increased 11% (6% in constant currencies) to over $34 billion for the quarter, with market share gains in nearly all top 10 markets.

• Loyalty program sales exceeded $9 billion for the quarter and $38 billion for the trailing twelve months across 70 markets.

• Strong execution across value, marketing, and menu innovation drove performance, with notable campaigns and new product launches in key markets.

• Operating income increased 12% (6% in constant currencies), reflecting higher sales-driven franchised margins and positive foreign currency impact.

Financial highlights

• Consolidated revenues grew 9% year-over-year to $6.52 billion.

• Operating income increased 12% to $2.95 billion; excluding restructuring charges, up 11%.

• Net income rose 6% to $1.98 billion; diluted EPS up 7% to $2.78; adjusted EPS excluding restructuring charges was $2.83, up 6%.

• Generated over $3.6 billion in restaurant margins; adjusted operating margin reached 46%.

• Free cash flow conversion rate expected in the low-to-mid 80% range for the year.

Outlook and guidance

• Full-year 2026 financial targets reaffirmed; foreign currency expected to be a $0.20–$0.30 EPS tailwind for the year.

• Net restaurant unit expansion expected to contribute ~2.5% to 2026 Systemwide sales growth, with ~2,600 new restaurants planned globally.

• 2026 operating margin projected in the mid-to-high 40% range; SG&A expenses expected at about 2.2% of Systemwide sales.

• Q2 comparable sales expected to decelerate due to tough prior-year comparisons, especially in April, but underlying momentum remains strong.

• Continued focus on value, menu innovation, and marketing, with new beverage launches and FIFA partnership expected to drive performance.