A global fast-food franchisor serving Big Macs, Chicken McNuggets, and McCafé drinks in over 80 countries, it runs most restaurants through franchisees who pay rent and royalties. It began in 1940 when brothers Richard and Maurice McDonald opened a San Bernardino drive-in, later streamlining it into the "Speedee Service System." The famous golden arches began as roadside architecture designed to catch motorists' eyes in the 1950s, not as a logo.
Global comparable sales growth slowed to 1.3% in Q2 2026 from 3.8% in Q1, as U.S. guest counts turned negative.
Global growth decelerated sharply, rising just 1.3% after a 3.8% increase in the prior quarter. rose 3.7% to $7.1 billion and rose 5.7% to $3.32, driven by franchised margin growth and a $116 million currency , even as U.S. company-owned margins fell 6%. The recovery is intact, but its pace is now being tested by negative U.S. traffic and a 17% increase in SG&A.
Key takeaways
Global rose 1.3% in Q2 2026, a deceleration from the 3.8% growth in Q1 2026, as positive check growth in the U.S. and strength in Germany, Australia, the U.K., and Japan were partly offset by negative U.S. guest counts and negative sales in France and China.
rose 3.7% to $7,099.0 million, with a $116 million favorable foreign currency translation impact; in , revenue increased 2%.
, which represent about 90% of total restaurant margin dollars, increased 4% to $3.7 billion, while U.S. company-owned margins declined 6% due to ongoing inflationary cost pressures.
Section summaries
Management's Discussion and Analysis
McDonald's Q2 2026 global comparable sales rose 1.3%, with consolidated revenues up 4% and diluted EPS up 6% to $3.32.
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Global grew 1.3% in Q2, driven by positive check growth in the U.S. and strong performances in Germany, Australia, the U.K., and Japan, partly offset by negative guest counts in the U.S. and negative sales in France and China.
rose 5.7% to $3.32 and rose 4.8% to $2,362.0 million, while rose 3.3% to $3,338.0 million.
Selling, general and administrative expenses rose 17% to $817 million, driven by higher employee costs, including incentive-based compensation, and costs related to the 2026 Worldwide Owner/Operator convention.
The company introduced its new 'McDonald's > NEXT' growth strategy, focused on elevating menu taste and quality, creating personalized consumer experiences, improving restaurant efficiency with AI, and enhancing hospitality standards.
What changed
The Q1 2026 filing flagged the Q2 global rate to see if the 3.8% pace held; it did not, decelerating to 1.3% as negative U.S. guest counts and weakness in France and China weighed on the result.
The Q1 2026 filing flagged the U.S. company-owned margin trend after a 25% decline; the decline narrowed to 6% in Q2, but inflationary cost pressures continued to pressure the .
No amount was reported in Q1 2026, and none is reported for Q2 2026, leaving the pace of buybacks against the -$1,023.0 million equity deficit unstated.
The $500 million international tax reserve flagged in every prior filing remains unresolved, with no mention of a resolution in this quarter's disclosures.
What to watch
Q3 2026 global rate to see if the 1.3% Q2 pace stabilizes or decelerates further as negative U.S. guest counts persist.
Q3 2026 U.S. company-owned margin trend to see if the 6% Q2 decline narrows further or widens again under inflationary cost pressures.
Pace of 2026 share repurchases against the -$1,023.0 million equity deficit, with no amount reported in either Q1 or Q2.
Q3 2026 SG&A trend after the 17% increase to $817 million and its pressure on , particularly whether convention-related costs recur.
Consolidated revenues increased 4% (2% in ) to $7.1 billion, benefiting from sales-driven growth in across all segments and a positive foreign currency translation impact of $116 million.
, representing about 90% of total restaurant margin dollars, increased 4% to $3.7 billion, while U.S. Company-owned margins declined 6% due to ongoing inflationary cost pressures.
Selling, general and administrative expenses rose 17% to $817 million, primarily due to higher employee costs, including incentive-based compensation, and costs related to the 2026 Worldwide Owner/Operator convention.
The company introduced its new 'McDonald's > NEXT' growth strategy focused on elevating menu taste and quality, creating personalized consumer experiences, improving restaurant efficiency with AI, and enhancing hospitality standards.
Full-year 2026 outlook includes net restaurant unit expansion contributing ~2.5% to growth, an in the mid-to-high 40% range, and of $3.7-$3.9 billion.
Quantitative and Qualitative Disclosures About Market Risk
There were no material changes to the disclosures made in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 regarding these matters.
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There were no material changes to the disclosures made in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 regarding these matters.
There were no material changes to the disclosure made in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 regarding these matters.
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There were no material changes to the disclosure made in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 regarding these matters.