NEW YORK, August 5, 2026, 18:10 EDT — U.S. cash markets have ended the session.
- Shares finished at $274, rising 2.1% and bringing their two-day advance to 3.3%.
- U.S. same-store sales increased by 0.8%, missing the 1.06% forecast from LSEG.
- Company data shows nearly 70% of reported revenue growth originated from franchised revenue.
McDonald’s shares advanced further on Wednesday, increasing by 2.1% to end the session at $274 after reaching a high of $275.30. The stock has now gained 3.3% since it closed on Monday.
Investors favored resilient earnings over a rebound in traffic. U.S. same-store sales came in below expectations, but adjusted earnings surpassed forecasts by six cents. Revenue was marginally under Wall Street projections.
Q2 results — released numbers alongside analyst forecasts.
| Metric | Q2 2026 | Q2 2025 | Street estimate | Result |
|---|---|---|---|---|
| Revenue | $7.099 billion | $6.843 billion | $7.13 billion | Shortfall of 0.4% |
| Adjusted EPS | $3.38 | $3.19 | $3.32 | Exceeds by 1.8% |
| U.S. comparable sales | +0.8% | +2.5% | +1.06% | Short by 0.26 points |
| Global comparable sales | +1.3% | +3.8% | — | Drop of 2.5 points |
The division of the quarter is significant. Franchised revenue contributed $180 million toward the $256 million rise in total revenue. With company numbers rounded, this represents about 70%.
Sales at U.S. company-owned locations slipped 1%. Same-store sales in the U.S. increased, supported by higher average checks and favorable product mix. Comparable traffic was down.
Chief Executive Chris Kempczinski cited execution as the issue. “We don’t have a strategy problem, we simply didn’t execute at the level we needed to in the second quarter.” Reuters
According to CFO Ian Borden, management identified reduced digital deals as the cause behind roughly two-thirds of the decline in traffic, which led some customers to either spend less or forgo visits. National promotions are set to come back next week.
McDonald’s has made adjustments to its U.S. leadership team. Skye Anderson, who has been with the company for 26 years, takes over from Joe Erlinger. Anderson assumed the role of U.S. operating chief in April.
Earnings-quality bridge — figures are based on rounded numbers from the company.
| Measure | Q2 2026 | Q2 2025 | Change or contribution |
|---|---|---|---|
| Franchised revenue | $4.393 billion | $4.213 billion | +$180 million; represents roughly 70% of revenue increase |
| Company-operated sales | $2.525 billion | $2.458 billion | +$67 million; accounts for about 26% |
| Operating income | $3.338 billion | $3.232 billion | +3.3% |
| Net income | $2.362 billion | $2.253 billion | +4.8% |
| Effective tax rate | 19.5% | 21.3% | Decrease of 1.8 percentage points |
| Diluted EPS | $3.32 | $3.14 | +5.7% |
The franchise model lessened the impact of weaker traffic. Operating income increased by 3.3%, while net income climbed 4.8%. A reduced tax rate provided support, and currency movements contributed three cents to diluted earnings per share.
The quarter signals resilience, but does not indicate increased demand so far. Franchised locations accounted for roughly 95% of the worldwide portfolio, generating consistent rents and royalty income.
Stock movement at the time of results
| Window | Starting close | Ending close | Change |
|---|---|---|---|
| Week ending July 31 | $264.76 as of July 24 | $270.64 as of July 31 | +2.2% |
| Earnings reported | $265.23 as of August 3 | $268.34 as of August 4 | +1.2% |
| First two sessions to August 5 | $265.23 as of August 3 | $274.00 as of August 5 | +3.3% |
The stock rose 2.2% last week. Following the results, shares moved higher, indicating investors were willing to overlook the weaker sales mix. The investment thesis remains linked to a rebound in visits.
Analyst recommendations overview — FactSet figures.
| Recommendation | Current | One month ago | Three months ago | Three-month change |
|---|---|---|---|---|
| Buy | 17 | 16 | 16 | +1 |
| Overweight | 6 | 6 | 7 | -1 |
| Hold | 14 | 14 | 13 | +1 |
| Underweight | 0 | 0 | 0 | — |
| Sell | 1 | 1 | 1 | — |
| Consensus | Overweight | Overweight | Overweight | No change |
The recommendation breakdown is still broadly favourable, but not without dissent. According to FactSet, there are 23 positive ratings, 14 holds, and one sell. The median price target stands at $312, representing a potential upside of 13.9% from Wednesday’s close.
Outlooks for coming periods appear more subdued. Consensus for 2026 EPS is down 2.0% over three months, at $12.92. The forecast for Q3 has dropped 4.7% to $3.41.
An initial operating trial is scheduled for the week of August 10. National digital promotions are set to resume. McDonald’s counts almost 220 million active loyalty members, with loyalty sales over the past year surpassing $40 billion.
Risks: Digital promotions might not succeed in increasing guest traffic. Offering larger discounts may additionally put pressure on restaurant margins. The Q2 tax rate came in lower than the 21%-23% projection for the year, and the three-cent EPS gain from currency could turn negative.
