--- title: "McDonald's | 10-Q: FY2026 Q2 Revenue Misses Estimate at USD 7.099 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/295261146.md" datetime: "2026-08-07T16:56:18.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295261146.md) - [en](https://longbridge.com/en/news/295261146.md) - [zh-HK](https://longbridge.com/zh-HK/news/295261146.md) generator: "portal-rs" --- # McDonald's | 10-Q: FY2026 Q2 Revenue Misses Estimate at USD 7.099 B Revenue: As of FY2026 Q2, the actual value is USD 7.099 B, missing the estimate of USD 7.127 B. EPS: As of FY2026 Q2, the actual value is USD 3.32, missing the estimate of USD 3.3367. EBIT: As of FY2026 Q2, the actual value is USD 3.338 B. #### Consolidated Financial Performance (Six Months Ended June 30, 2026 vs. 2025) - **Net Income**: McDonald’s Corporation reported net income of $4,345 million for the six months ended June 30, 2026, an increase of 5% (3% in constant currencies) compared to $4,121 million in the prior year period. - **Operating Income**: Consolidated operating income increased by 7% (4% in constant currencies) to $6,292 million, up from $5,880 million in the previous year. Excluding current and prior year charges, consolidated operating income increased 7% (3% in constant currencies) for the six months. - **Operating Margin**: The operating margin was 46.2% for the six months ended June 30, 2026, compared to 45.9% in the prior year. The non-GAAP operating margin was 46.9% for the six months ended June 30, 2026, compared to 46.8% in the prior year. - **Interest Expense**: Interest expense rose by 6% (4% in constant currencies) to $809 million, from $766 million in the prior year. - **Nonoperating (Income) Expense, Net**: This category shifted from -$76 million in 2025 to $5 million in 2026. - **Provision for Income Taxes**: The provision for income taxes was $1,133 million, up from $1,069 million. - **Effective Income Tax Rate**: The effective income tax rate was 20.7% for both periods. #### Segmented Revenue and Operating Income (Six Months Ended June 30, 2026 vs. 2025) - **U.S. Segment**: - **Total Revenues**: $5,409 million (2026) vs. $5,276 million (2025). - **Operating Income**: $2,953 million (2026) vs. $2,829 million (2025), a 4% increase (4% in constant currencies). - **International Operated Markets Segment**: - **Total Revenues**: $6,928 million (2026) vs. $6,377 million (2025). - **Operating Income**: $3,230 million (2026) vs. $2,924 million (2025), a 10% increase (4% in constant currencies). - **International Developmental Licensed Markets & Corporate Segment**: - **Total Revenues**: $1,279 million (2026) vs. $1,145 million (2025). - **Operating Income**: $109 million (2026) vs. $127 million (2025), a -14% decrease (-33% in constant currencies). #### Segmented Operating Costs (Six Months Ended June 30, 2026 vs. 2025) - **Franchised Restaurants - Occupancy Expenses**: - U.S. Segment: $643 million (2026) vs. $643 million (2025). - International Operated Markets Segment: $712 million (2026) vs. $630 million (2025). - International Developmental Licensed Markets & Corporate Segment: $0 million (2026) vs. $1 million (2025). - **Company-owned and Operated Restaurant Expenses**: - U.S. Segment: $1,362 million (2026) vs. $1,339 million (2025). - International Operated Markets Segment: $2,577 million (2026) vs. $2,409 million (2025). - International Developmental Licensed Markets & Corporate Segment: $230 million (2026) vs. $189 million (2025). - **Selling, General & Administrative Expenses**: - U.S. Segment: $287 million (2026) vs. $292 million (2025). - International Operated Markets Segment: $378 million (2026) vs. $335 million (2025). - International Developmental Licensed Markets & Corporate Segment: $911 million (2026) vs. $755 million (2025). - **Other Segment Items**: - U.S. Segment: $164 million (2026) vs. $172 million (2025). - International Operated Markets Segment: $31 million (2026) vs. $80 million (2025). - International Developmental Licensed Markets & Corporate Segment: $28 million (2026) vs. $74 million (2025). #### Operational Metrics (Six Months Ended June 30, 2026 vs. 2025) - **Comparable Sales**: - U.S. Segment: Increased by 2.3% (2026) compared to a -0.5% decrease (2025). - International Operated Markets Segment: Increased by 2.6% (2026) compared to a 1.6% increase (2025). - International Developmental Licensed Markets Segment: Increased by 2.6% (2026) compared to a 4.5% increase (2025). - Total Company: Increased by 2.5% (2026) compared to a 1.4% increase (2025). - **Systemwide Sales**: - U.S. Segment: Increased by 3% (3% in constant currencies) for the six months. - International Operated Markets Segment: Increased by 11% (5% in constant currencies) for the six months. - International Developmental Licensed Markets Segment: Increased by 10% (7% in constant currencies) for the six months. - Total Company: Increased by 8% (5% in constant currencies) for the six months. - **Franchised Sales**: - U.S. Segment: $25,911 million (2026) vs. $25,003 million (2025), a 4% increase (4% in constant currencies). - International Operated Markets Segment: $21,954 million (2026) vs. $19,696 million (2025), an 11% increase (5% in constant currencies). - International Developmental Licensed Markets Segment: $18,503 million (2026) vs. $16,865 million (2025), a 10% increase (7% in constant currencies). - Total Franchised Sales: $66,368 million (2026) vs. $61,564 million (2025), an 8% increase (5% in constant currencies). - **Franchised Margins**: - U.S. Segment: $3,048 million (2026) vs. $2,936 million (2025), a 4% increase (4% in constant currencies). - International Operated Markets Segment: $3,005 million (2026) vs. $2,763 million (2025), a 9% increase (3% in constant currencies). - International Developmental Licensed Markets & Corporate Segment: $990 million (2026) vs. $901 million (2025), a 10% increase (7% in constant currencies). - Total Franchised Margins: $7,044 million (2026) vs. $6,600 million (2025), a 7% increase (4% in constant currencies). - **Company-owned and Operated Margins**: - U.S. Segment: $151 million (2026) vs. $176 million (2025), a -14% decrease (-14% in constant currencies). - International Operated Markets Segment: $508 million (2026) vs. $465 million (2025), a 9% increase (4% in constant currencies). - Total Company-owned and Operated Margins: $672 million (2026) vs. $653 million (2025), a 3% increase (-1% in constant currencies). - **Total Restaurant Margins**: $7,716 million (2026) vs. $7,254 million (2025), a 6% increase (3% in constant currencies). - **Depreciation & Amortization**: - U.S. Segment: $164 million (2026) vs. $172 million (2025). - International Operated Markets Segment: $31 million (2026) vs. $80 million (2025). - International Developmental Licensed Markets & Corporate Segment: $28 million (2026) vs. $74 million (2025). - Total Depreciation & Amortization: $1,131 million (2026) vs. $1,064 million (2025). - **Restructuring Charges**: McDonald’s Corporation incurred $98 million in restructuring charges related to “Accelerating the Organization” in the six months ended June 30, 2026, primarily at Corporate ($97 million) and International Operated Markets ($1 million). Total restructuring charges incurred since 2023 for this initiative amount to $795 million. #### Cash Flow (Six Months Ended June 30, 2026 vs. 2025) - **Cash Provided by Operations**: $5,222 million (2026) vs. $4,426 million (2025). - **Capital Expenditures**: - U.S. Segment: $631 million (2026) vs. $543 million (2025). - International Operated Markets Segment: $868 million (2026) vs. $739 million (2025). - International Developmental Licensed Markets & Corporate Segment: $17 million (2026) vs. $13 million (2025). - Total Capital Expenditures: -$1,516 million (2026) vs. -$1,295 million (2025). - **Free Cash Flow**: Free cash flow was $3,706 million for the six months ended June 30, 2026. - **Cash Used for Investing Activities**: -$1,648 million (2026) vs. -$1,641 million (2025). - **Cash Used for Financing Activities**: -$3,612 million (2026) vs. -$2,098 million (2025). #### Unique Metrics - **Restaurant Count (June 30, 2026)**: The company operated 46,028 Systemwide restaurants, with 44,016 franchised and 2,012 company-owned and operated. - **Equity Method Investments (Six Months Ended June 30, 2026)**: Equity in earnings of unconsolidated affiliates was -$122 million. - **Total Assets (June 30, 2026)**: Total assets were $59,920 million. - U.S. Segment: $23,189 million. - International Operated Markets Segment: $27,739 million. - International Developmental Licensed Markets & Corporate Segment: $8,992 million. #### Outlook and Strategy McDonald’s Corporation introduced the McDonald’s > NEXT (NEXT Strategy) in June 2026, building on its “Accelerating the Arches” strategy, to drive the next era of growth and productivity. For the full year 2026, McDonald’s Corporation anticipates net restaurant unit expansion to contribute approximately 2.5% to Systemwide sales growth in constant currencies, with capital expenditures projected to be between $3.7 billion and $3.9 billion. The company expects to open about 2,600 restaurants globally, targeting 50,000 global units by 2028, and aims for a free cash flow conversion rate in the low-to-mid 80% range. ### Related Stocks - [MCD.US](https://longbridge.com/en/quote/MCD.US.md) ## Related News & Research - [Ridgewood Investments LLC Buys 4,443 Shares of McDonald's Corporation $MCD](https://longbridge.com/en/news/300973813.md) - [McDonald's Is Undergoing a Massive New Growth Strategy. 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