McDonald's 8-K

Summary

Q3 2026 results and FY2026 outlook. Systemwide sales, including sales at franchised and company-operated restaurants, rose 4%, while comparable sales at restaurants open at least 13 months increased 1.5%; international markets led, as U.S. comparable sales fell 0.2% despite improvement through the quarter after value actions. Revenue increased 1% and operating income 7%, supported by higher sales-driven franchised margins and other operating income. For 2026, management expects net restaurant expansion to contribute ≈2.5% to Systemwide sales growth.

Developments

• Sales to customers identifying as loyalty members across 70 markets exceeded $11B in Q3 and totaled $41B for the trailing 12 months.
• The global restaurant count reached 46,554 at 9/30/2026, up 1,955 Y/Y; International Developmental Licensed Markets added 1,424 locations, including 893 in China.

Key Figures

• Higher sales-driven franchised margins and other operating income supported operating-income growth. Franchised margins rose 3% and represented about 90% of restaurant margin dollars; other operating income included $97M in gains on restaurant-business sales, vs $35M a year earlier, and higher equity earnings in China.
• Results included pre-tax restructuring charges of $56M, or $0.06 per share, in Q3 and $155M, or $0.17 per share, for 9M, vs $39M and $148M, respectively, in the prior-year periods. The Accelerating the Organization initiative is expected to incur restructuring charges through its anticipated completion in 2027.
• Q3 dividends paid were $1.86 per share, or $1.3B; the company repurchased 1.9M shares for $519M. For 9M, dividends totaled $4.0B and repurchases were 6.2M shares for $1.8B; diluted weighted-average shares fell 1% Y/Y to 708.3M. The company declared a 4% increase in its quarterly dividend to $1.93 per share, payable 12/15/2026.

Guidance

Guidance changes, derived from earlier filings

Metric	Period	Earlier guidance	Guidance now	Change
Systemwide sales growth contribution from net restaurant unit expansion, constant currency	FY2026	≈2.5%	≈2.5%	reaffirmed
Selling, general and administrative expenses as a share of Systemwide sales	FY2026	≈2.2%	About 2.2%	reaffirmed
Operating margin	FY2026	Mid-to-high 40% range	Mid-to-high 40% range	reaffirmed
Interest expense	FY2026	4%-6% increase	Increase 4%-6%	reaffirmed
Effective income tax rate	FY2026	21%-23%	21%-23%	reaffirmed
Capital expenditures	FY2026	$3.7B-$3.9B	About $3.7B	narrowed (lowered high end)
Net restaurant additions	FY2026	≈2,100	About 2,100	reaffirmed
Free cash flow conversion rate (free cash flow divided by net income)	FY2026	Low-to-mid 80% range	Low-to-mid 80% range	reaffirmed