McDonald's Holdings Company (Japan) (2702) Q2 2025 earnings summary

Executive summary

• System-wide sales for H1 2025 reached 429.7 billion yen, up 6.4% year-over-year, with operating income at 26.2 billion yen and a 12.9% margin, marking the 39th consecutive quarterly increase.

• Both system-wide and same-store sales increased year-over-year, driven by menu innovation, digital expansion, and sustainability initiatives.

• Operating income and net income attributable to owners both rose compared to the same period last year, reflecting efficient operations and strong customer engagement.

• The company revised its full-year forecast upward, citing robust interim results and ongoing strategic investments.

• 26 new restaurants opened in H1 2025, bringing the total to 2,989.

Financial highlights

• H1 2025 revenue was 203.3 billion yen, up 1.2% year-over-year; operating income rose 10.4% to 26.2 billion yen.

• Net income attributable to owners increased 12.8% year-over-year to 16.7 billion yen.

• Gross profit improved to 42.5 billion yen from 40.3 billion yen year-over-year.

• Cash and cash equivalents at period-end were 68.8 billion yen, up 1.5 billion yen from the previous year-end.

• Ordinary income grew 7.7% year-over-year to 26.1 billion yen.

Outlook and guidance

• Full-year 2025 forecast revised upward: operating income now expected at 51.0 billion yen (+3.0% vs. previous forecast), net income at 31.0 billion yen (+1.6%).

• System-wide sales for 2025 projected at 880.0 billion yen, up 6.1% year-over-year.

• Net income per share for the year is forecast at 233.15 yen.

• Dividend per share forecast increased to 56.00 yen for the year ending December 31, 2025.

• Despite cost pressures, focus remains on proactive investment and enhancing customer experience.