NEW YORK, August 4, 2026, 08:03 (EDT)
- Adjusted earnings were $3.38 per share, exceeding consensus by six cents.
- U.S. same-store sales increased by 0.8%, falling short of expectations by 26 basis points.
- Loyalty sales increased by over 20%, while domestic guest counts continued to show negative results.
McDonald’s NYSE:MCD reported quarterly earnings above expectations, though U.S. customer visits declined. Comparable sales in the U.S. increased by 0.8%, missing the consensus estimate of 1.06%. Shares rose about 2% in pre-market U.S. trading.
The mixed outcome turns the focus away from safeguarding earnings to scrutinizing demand strength. While increased average checks and a strong product mix counterbalance a drop in U.S. visit numbers, traffic is proving more challenging than pricing.
Digital metrics show a comparable pattern. Sales from loyalty programme members climbed over 20% in a year. The number of active users grew by 13%, resulting in a gap of at least seven percentage points. This points to better monetization of loyalty members, even as overall traffic has yet to rebound fully.
Revenue fell short of expectations by roughly $31 million. Adjusted earnings surpassed forecasts by six cents. Domestic sales missed by a narrow margin, yet the slowdown affected a wide range of areas.
| Q2 measure | Reported | Analyst estimate | Q2 2025 | Difference |
|---|---|---|---|---|
| Revenue | $7.099 billion | $7.130 billion | $6.843 billion | $31 million below estimate; up 3.7% from a year ago |
| Adjusted EPS | $3.38 | $3.32 | $3.19 | $0.06 above forecast; up 6.0% |
| U.S. comparable sales | +0.8% | +1.06% | +2.5% | 0.26 percentage point miss; growth slowed by 1.7 points |
Consensus estimates from analysts are compiled before the release. Reported outcomes have not been audited.
Sales declined in all reporting divisions. The licensed-markets segment experienced the steepest drop. Comparable sales in China turned negative, whereas Japan was the leading market for that segment.
| Comparable-sales growth | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| United States | +0.8% | +2.5% | -1.7 points |
| International Operated Markets | +1.5% | +4.0% | -2.5 points |
| International Developmental Licensed Markets | +1.9% | +5.6% | -3.7 points |
| Company total | +1.3% | +3.8% | -2.5 points |
Adjustments are based on figures disclosed by McDonald’s.
Growth from additional units offset weaker demand. Systemwide sales on a constant-currency basis increased 4%, while comparable sales gained 1.3%. The difference of about 2.7 percentage points is attributed to new units and other factors. McDonald’s previously projected that net new openings would add roughly 2.5% in 2026.
| Growth channel | Latest rate | Comparison | Investor reading |
|---|---|---|---|
| Systemwide sales, constant currency | +4.0% | Global comps: +1.3% | Store openings contributed significantly to results |
| Approximate unit and other contribution | +2.7 points | 2026 unit guide: about +2.5% | Consistent with yearly guidance |
| Loyalty-member sales, trailing 12 months | More than +20% | Active users: +13% | Growth in sales outpaced user gains |
| U.S. transaction indicators | Positive average check | Negative guest counts | Total spent increased without higher frequency |
The 2.7-point bridge is an estimated figure. The metrics are not fully cumulative.
The earnings composition raises concerns. Reported data show operating margin dropped by 21 basis points. Roughly 62% of the rise in operating income was due to a $66 million change in other operating income. Reduced tax expenses and a lower share count further boosted per-share growth.
| Profit-quality measure | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $7.099 billion | $6.843 billion | up 3.7% |
| Operating income | $3.338 billion | $3.232 billion | rise of 3.3% |
| Operating margin | 47.0% | 47.2% | down 21 basis points |
| Other operating income/(expense) | $37 million income | $29 million expense | $66 million higher |
| Effective tax rate | 19.6% | 21.3% | down 170 basis points |
| Diluted share count | 711.1 million | 717.6 million | decrease of 0.9% |
| Adjusted EPS | $3.38 | $3.19 | increase of 6.0% |
Margins, rates, and variations are derived from McDonald’s unaudited income statement.
Management said the quarterly results were driven by improved franchised margins and greater operating income. This gain was partly countered by an increase in administrative expenses. Non-depreciation selling and administrative costs rose 19% to $706 million.
Chief Executive Chris Kempczinski stated, “We see an opportunity to raise the bar in the U.S.” McDonald’s named Skye Anderson, who has worked at the company for 26 years, as the new leader of the U.S. market. She takes over from Joe Erlinger. McDonald’s Corporation
In April, McDonald’s introduced a value menu featuring ten items priced under $3, alongside promotions on breakfast items and specialty beverages. However, the initiatives were not enough to avoid a decline in guest visits. The same quarter last year had received a boost from significant menu launches and entertainment promotions.
The premarket gain stayed within the approximately 4% swing implied by options. Shares were down nearly 13% for the year as of Tuesday. Investors seem to favor stability over clear signs of a rebound in traffic.
Risks: Persistently high fuel and food prices may dampen demand among lower-income consumers. While larger discounts can help boost visits, they could strain restaurant profitability. New beverage offerings and adjustments to service might not immediately increase transactions.
The upcoming challenge is the management earnings call at 08:30 EDT. Investors will look for details on traffic patterns, value-menu performance, and more transparent U.S. objectives. The positive earnings result provided some breathing room, but left demand questions unresolved.
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