McDonald's Q1 2026 Earnings Beat Estimates
McDonald's Q1 2026 earnings beat revenue and profit forecasts on May 7, 2026 and pushed shares higher as global comparable and systemwide sales rose.
KEY TAKEAWAYS
- Reported Q1 revenue of $6.5B and adjusted EPS of $2.83, topping expectations.
- Operating income rose to $3.0B, excluding restructuring charges.
- Set 2026 operating-margin guidance mid-to-high 40% and plans 2,100 net new restaurants.
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McDonald's Corporation reported Q1 2026 earnings on May 7, 2026, beating market expectations with rising global comparable and systemwide sales. The company reiterated its operating-margin outlook for 2026 and posted stronger operating income.
Quarter Results, Profitability, and Outlook
For the quarter ended March 31, 2026, McDonald's reported consolidated revenues of $6.52 billion, up 9% (4% on a constant-currency basis) from $5.96 billion a year earlier. Operating income rose 12% (6% cc) to $2.95 billion. Excluding $47 million in pre-tax restructuring charges related to its "Accelerating the Organization" initiative and $66 million in prior-year restructuring costs, operating income increased 11% (5% cc). Net income reached $1.98 billion, a 6% gain (1% cc). Diluted GAAP earnings per share were $2.78, or $2.83 on an adjusted basis excluding $0.05 per share of restructuring charges.
The company set 2026 operating-margin guidance in the mid-to-high 40% range. It plans to open 2,600 restaurants this year, resulting in roughly 2,100 net new locations.
Chairman and CEO Chris Kempczinski said, "McDonald's delivered this quarter."
Systemwide Sales Growth and Capital Returns
Global comparable sales rose 3.8% for the quarter, with the U.S. and International Operated Markets each up 3.9% and International Developmental Licensed Markets increasing 3.4%. Systemwide sales exceeded $34 billion, up 11% (6% cc).
Sales through McDonald's loyalty programs surpassed $9 billion for the quarter and topped $38 billion on a trailing 12-month basis across 70 markets.
As of March 31, 2026, McDonald's operated 45,699 restaurants worldwide, about 95% franchised. The company returned capital to shareholders through a $1.86-per-share dividend totaling approximately $1.3 billion and repurchased 1.3 million shares for $393 million during the quarter.
The combination of margin guidance, planned net restaurant growth, and capital returns signals McDonald's continued focus on operating profitability and shareholder distributions in 2026.
