McDonald's Corporation MCD reported first-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Following the results, the company’s shares are up 3% in the pre-market trading session today.
The company reported adjusted earnings per share of $2.83, up 6% year over year and ahead of the Zacks Consensus Estimate of $2.74 by 3.3%. Revenues were $6.52 billion, up 9% year over year and above the consensus mark of $6.49 billion by 0.5%.
Operationally, results were underpinned by 3.8% global comparable-sales growth and an 11% increase in global systemwide sales. Loyalty also remained a meaningful contributor.
MCD Keeps Comparable Sales Positive Across Segments
Global comparable sales increased 3.8% in the quarter, reflecting consistently solid gains across segments. The United States posted a 3.9% increase, with management attributing performance primarily to positive check growth.
International Operated Markets also delivered 3.9% comparable-sales growth, with nearly all markets contributing. The company cited strength led by the United Kingdom, Germany and Australia, signaling broad participation rather than reliance on a narrow set of geographies.
McDonald's Corporation Price, Consensus and EPS Surprise
McDonald's Corporation price-consensus-eps-surprise-chart | McDonald's Corporation Quote
McDonald's Systemwide Sales Highlight Demand and Scale
Beyond comps, McDonald’s pointed to robust systemwide momentum. Global systemwide sales rose more than $34 billion, or 6% on a constant-currency basis, reflecting both comparable-sales gains and the scale of the restaurant base.
Loyalty continued to stand out as a demand lever. Across 70 loyalty markets, systemwide sales to loyalty members exceeded $9 billion for the quarter, while trailing 12-month sales to loyalty members were more than $38 billion, underscoring sustained engagement over time.
MCD Revenue Mix Skews Toward Franchised Streams
Total revenues reached $6.52 billion, supported by the company’s predominantly franchised model. Revenues from franchised restaurants were $4.01 billion, while sales by company-owned and operated restaurants were $2.32 billion.
Other revenues totaled $193 million. With franchised restaurants representing the largest revenue stream, performance remains closely tied to systemwide sales trends that form the basis for franchised revenues, even though those sales are not recorded as company revenues.
McDonald's Expenses Rise, but Operating Leverage Holds
Total operating costs and expenses were $3.56 billion in the quarter. Franchised restaurants’ occupancy expenses were $676 million, while company-owned and operated restaurant expenses were $2.03 billion. Other restaurant expenses totaled $166 million.
Selling, general and administrative costs included depreciation and amortization of $111 million and other SG&A of $648 million. Despite higher costs, the company generated year-over-year operating income growth, supported by sales-driven franchised margin strength noted in the earnings materials.
MCD Profitability Reflects Charges and Higher Taxes
Operating income increased 12% year over year to $2.95 billion. Results included pre-tax charges of $47 million, primarily tied to restructuring actions associated with the company’s “Accelerating the Organization” effort to modernize ways of working.
Below operating income, interest expense was $400 million and income taxes rose to $559 million. Net income totaled $1.98 billion, while adjusted results reflected the exclusion of the quarter’s restructuring-related items, helping align earnings performance more closely with underlying operating trends.
MCD’s Zacks Rank & Key Picks
MCD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
Five Below, Inc. FIVE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FIVE has a trailing four-quarter earnings surprise of 63.4%, on average. The Zacks Consensus Estimate for FIVE’s 2027 sales and EPS indicates growth of 11.3% and 20.2%, respectively, from the year-ago period’s levels.
Victoria's Secret & Co. VSCO currently flaunts a Zacks Rank of 1. VSCO has a trailing four-quarter earnings surprise of 55.1%, on average.
The Zacks Consensus Estimate for VSCO’s 2027 sales and EPS indicates growth of 6.2% and 15.7%, respectively, from the year-ago period’s levels.
CAVA Group, Inc. CAVA carries a Zacks Rank of 2 (Buy) at present. CAVA delivered a trailing four-quarter earnings surprise of 26.5%, on average.
The Zacks Consensus Estimate for CAVA’s 2027 sales and EPS indicates growth of 18.2% and 32%, respectively, from the prior-year levels.
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McDonald's Corporation (MCD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).