McDonald's | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 6.517 B

Revenue: As of FY2026 Q1, the actual value is USD 6.517 B, beating the estimate of USD 6.466 B.

EPS: As of FY2026 Q1, the actual value is USD 2.78, beating the estimate of USD 2.7369.

EBIT: As of FY2026 Q1, the actual value is USD 2.942 B.

Consolidated Revenues

Total revenues for McDonald’s Corporation were $6,517 million in the first quarter of 2026, an increase of 9% compared to $5,956 million in the first quarter of 2025, or 4% excluding currency translation . Revenues from franchised restaurants increased 9% to $4,007 million in Q1 2026 from $3,661 million in Q1 2025, representing a 5% increase in constant currencies . Sales by Company-owned and operated restaurants grew 9% to $2,317 million in Q1 2026 from $2,132 million in Q1 2025, or 3% in constant currencies . Other revenues increased 19% to $193 million in Q1 2026, compared to $162 million in Q1 2025, or 16% in constant currencies .

Regionally, U.S. Franchised revenues were $1,750 million, up 4% (4% in constant currencies) . International Operated Markets Franchised revenues were $1,782 million, up 15% (4% in constant currencies) . International Developmental Licensed Markets & Corporate Franchised revenues were $476 million, up 11% (6% in constant currencies) . For Company-owned and operated sales, U.S. sales were $729 million, up 1% (1% in constant currencies) . International Operated Markets sales were $1,477 million, up 13% (4% in constant currencies) . International Developmental Licensed Markets & Corporate sales were $111 million, up 12% (-3% in constant currencies) .

Operational Metrics

Net Income: Net income was $1,983 million in Q1 2026, an increase of 6% from $1,868 million in Q1 2025, or 1% in constant currencies . Non-GAAP net income, excluding charges, was $2,019 million, an increase of 5% from $1,919 million in Q1 2025, or 0% in constant currencies .

Operating Income: Consolidated operating income was $2,953 million in Q1 2026, an increase of 12% from $2,648 million in Q1 2025, or 6% in constant currencies . This included pre-tax charges of $47 million in Q1 2026 and $66 million in Q1 2025, primarily related to restructuring . Excluding these charges, consolidated operating income increased 11% to $3,000 million, or 5% in constant currencies .

Operating Margin: The operating margin was 45.3% in 2026, up from 44.5% in 2025 . Non-GAAP operating margin was 46.0% in 2026, up from 45.6% in 2025 .

Operating Costs and Expenses: Total operating costs and expenses were $3,564 million in Q1 2026, an increase of 8% from $3,308 million in Q1 2025 . Franchised restaurants-occupancy expenses were $676 million, up 9% from $620 million . Company-owned and operated restaurant expenses were $2,032 million, up 9% from $1,859 million . Other restaurant expenses were $166 million, up 19% from $140 million . Depreciation and amortization was $111 million, up 3% from $107 million . Other selling, general & administrative expenses were $648 million, up 13% from $575 million . Other operating (income) expense, net was -$69 million in Q1 2026, compared to $7 million in Q1 2025, primarily reflecting higher gains on sales of restaurant businesses and excess properties . Selling, General & Administrative (SG&A) expenses increased 11% to $759 million from $682 million, or 9% in constant currencies, mainly due to higher employee costs . SG&A expenses as a percent of Systemwide sales were 2.2% for both periods .

Other Financial Items: Interest expense was $400 million in Q1 2026, up 6% from $376 million in Q1 2025, or 4% in constant currencies, due to higher average debt balances and foreign currency translation . Nonoperating (income) expense, net was $11 million in Q1 2026, compared to -$57 million in Q1 2025, with interest income decreasing due to lower average interest rates . Income before provision for income taxes was $2,542 million in Q1 2026, up 9% from $2,330 million in Q1 2025 . Provision for income taxes was $559 million in Q1 2026, up 21% from $461 million in Q1 2025 . The effective income tax rate was 22.0% in 2026, up from 19.8% in 2025 .

Cash Flow

Free cash flow is defined as cash provided by operations less capital expenditures . No specific free cash flow values were provided in the report for the quarter .

Unique Metrics

Comparable Sales Growth: Global comparable sales increased by 3.8% for the quarter . U.S. comparable sales increased by 3.9% in Q1 2026, compared to a decrease of -3.6% in Q1 2025 . International Operated Markets comparable sales increased by 3.9% in Q1 2026, compared to a decrease of -1.0% in Q1 2025 . International Developmental Licensed Markets comparable sales increased by 3.4% in Q1 2026, compared to an increase of 3.5% in Q1 2025 .

Systemwide Sales: Global Systemwide sales increased 11% (6% in constant currencies) to over $34 billion for the quarter . Systemwide sales to loyalty members were over $9 billion for the quarter and over $38 billion for the trailing twelve-month period across 70 loyalty markets . Total franchised sales were $31,917 million, up 11% from $28,804 million (7% in constant currencies) .

Restaurant Count: McDonald’s Corporation had 45,699 Systemwide restaurants at March 31, 2026, an increase of 1,943 from 43,756 at March 31, 2025, with 43,672 franchised and 2,027 Company-owned and operated restaurants .

Outlook / Guidance

McDonald’s Corporation anticipates approximately 2.5% contribution to Systemwide sales growth from net restaurant unit expansion in constant currencies . The company expects full-year SG&A expenses to be about 2.2% of Systemwide sales and projects an operating margin percentage in the mid-to-high 40% range . Capital expenditures are estimated to be between $3.7 and $3.9 billion, with plans to open approximately 2,600 restaurants globally and achieve a free cash flow conversion rate in the low-to-mid 80% range .