McDonald's Q3 2026 earnings review

Q3 adjusted EPS beat LSEG consensus by 5.6% and revenues missed it, while shares rose 4.7% intraday.

McDonald's · Q3 2026 · Published Nov 4, 2026 · By DeepCell AI · Sources

McDonald's Q3 2026 earnings review

Quarter ended September 30, 2026

For information only, not investment advice. No rating or price target.

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1 · McDonald's (MCD) Q3 2026 earnings review

Q3 adjusted EPS beat LSEG consensus by 5.6% and revenues missed it, while shares rose 4.7% intraday

  1. 1.Adjusted diluted EPS of $3.57 beat the LSEG consensus of $3.38
  2. 2.Total revenues of $7,157M missed the LSEG consensus by 1.8%
  3. 3.Global comparable sales rose 1.5%; U.S. comparable sales fell 0.2%
  4. 4.Operating income rose 7.1% to $3,595M
  5. 5.The 2026 capex outlook was cut to about $3.7B from $3.7B to $3.9B
  6. 6.Shares closed at $263.04 on Nov 3 and traded at $275.41 on Nov 4 morning

Note: Adjusted EPS excludes charges, mainly restructuring. Nov 4 price is intraday at 10:28 AM ET, not a close.Source: McDonald's Form 8-K, Nov 4, 2026; LSEG via CNBC, Nov 4, 2026; Yahoo Finance prices, Nov 3–4, 2026

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2 · Executive summary

Adjusted EPS beat LSEG consensus by 5.6%, while revenues missed it by 1.8%

Q3 2026 results vs. consensus (LSEG and StreetAccount via CNBC, Nov 4, 2026)

MetricActualConsensusVarianceResult
Total revenues, LSEG$7,157M$7,290M-$133M / -1.8%Miss
Adjusted diluted EPS, LSEG$3.57$3.38+$0.19 / +5.6%Beat
U.S. comparable sales, StreetAccount-0.2%-0.5%+30 bpsBeat
Global comparable sales, StreetAccount+1.5%+1.3%+20 bpsBeat

Share price, Nov 3–4, 2026 (Yahoo Finance)

McDonald's (NYSE)Nov 3 closeNov 4 pre-marketNov 4 intradayIntraday change
MCD$263.04$269.25$275.41+4.7%

Note: Zacks consensus: EPS $3.36, revenues $7,280M. Prices at 8:00 and 10:28 AM ET, not a close. CNBC tied the rise to the EPS beat and U.S. improvement.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; LSEG and StreetAccount via CNBC; Zacks via Yahoo Finance; Yahoo Finance prices

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3 · Q3 results vs. consensus

The 2026 capex outlook was cut to about $3.7B, and planned openings fell to about 2,500

2026 outlook, Nov 4 vs. Aug 4, 2026

MetricAug 4 outlookNov 4 outlookChange
Capital expenditures$3.7B to $3.9BAbout $3.7BLowered
Restaurant openingsAbout 2,600About 2,500Lowered
Net restaurant additionsAbout 2,100About 2,100Unchanged

Other 2026 outlook items, unchanged from Aug 4

MetricOutlook
Unit expansion, share of sales growthAbout 2.5%
SG&A as a share of Systemwide salesAbout 2.2%
Interest expense growth4% to 6%
Effective tax rate21% to 23%

Note: Also unchanged: operating margin in the mid-to-high 40% range; free cash flow conversion low-to-mid 80%. No consensus found.Source: McDonald's supplemental information, Nov 4, 2026; McDonald's Form 8-K, Aug 4, 2026 (prior outlook); analysis of company data

4

4 · 2026 guidance

Total revenues rose 1.1%, while adjusted diluted EPS rose 10.9%

  1. Operating income grew fasterOperating income rose 7.1% to $3,595M.
  2. Charges were higherPre-tax charges were $56M, up from $39M, mainly restructuring.
  3. Fewer sharesDiluted shares fell to 708.3 million from 715.9 million.

Key figures

$M unless notedQ3 2025Q3 2026YoY
Total revenues$7,078M$7,157M1.1%
Operating income$3,357M$3,595M7.1%
Net income$2,278M$2,486M9.1%
Diluted EPS$3.18$3.5110.4%
Adjusted diluted EPS$3.22$3.5710.9%

Note: Adjusted figures exclude charges ($0.06 per share in Q3 2026, $0.04 in Q3 2025).Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

5

5 · Q3 key financials

U.S. operating income rose 8.5%, although U.S. revenues fell 0.4%

Revenues and operating income by segment

$M, Q3 2026

SegmentRevenuesRevenues YoYOperating incomeOperating income YoY
U.S.$2,685M-0.4%$1,625M+8.5%
IOM$3,598M-0.2%$1,796M+2.0%
IDL$684M+9.4%$174M+79.4%
Other revenues$189M+25.2%––
Total$7,157M+1.1%$3,595M+7.1%
U.S. company-operated sales fell 6.1%“In the U.S., we’re encouraged by improvement as the quarter progressed following our intervention on value.” Chris Kempczinski, CEO

Note: IDL is International Developmental Licensed Markets & Corporate. Revenues are franchised revenues plus company-operated sales. IOM is International Operated Markets; IDL includes Corporate.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

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6 · Segment results

Company-operated sales fell $83M, offsetting most of the $124M rise in franchised revenues

Total revenues bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: $7,078M$M · Franchised: $124M$M · Company-run: -$83M$M · Other: $38M$M · Q3 2026: $7,157MQ3 2025FranchisedCompany-runOtherQ3 2026$6,800M$6,900M$7,000M$7,100M$7,200M$7,300M$7,078M$124M-$83M$38M$7,157M
Franchised revenues rose 2.8%, with franchised sales up 4.5%

Note: Company-operated restaurants fell to 1,924 from 2,053 as the company sold restaurants to franchisees.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

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7 · Revenue bridge

U.S. comparable sales fell 0.2%, while IDL comparable sales rose 4.2%

Comparable sales by segment

% change YoY, Q3 2025 vs. Q3 2026

U.S. · Q3 2025: 2.4%U.S. · Q3 2026: -0.2%IOM · Q3 2025: 4.3%IOM · Q3 2026: 1.4%IDL · Q3 2025: 4.7%IDL · Q3 2026: 4.2%Total · Q3 2025: 3.6%Total · Q3 2026: 1.5%Q3 2025Q3 2026-2.0%0.0%2.5%6.0%2.4%-0.2%4.3%1.4%4.7%4.2%3.6%1.5%
U.S. comparable sales were +2.4% in Q3 2025; negative guest counts drove the Q3 2026 decline

Note: IDL is International Developmental Licensed Markets & Corporate. Comparable sales exclude currency translation.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

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8 · Comparable sales by segment

Other operating income rose $102M and supplied 42.9% of the operating income increase

Operating income bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: $3,357M$M · Franchised: $103M$M · Company-run: $1M$M · Other, net: $6M$M · Lower SG&A: $26M$M · Other income: $102M$M · Q3 2026: $3,595MQ3 2025FranchisedCompany-runOther, netLower SG&AOther incomeQ3 2026$3,200M$3,300M$3,400M$3,500M$3,600M$3,650M$3,357M$103M$1M$6M$26M$102M$3,595M
Gains on sales of restaurant businesses rose to $97M from $35M

Note: Steps use the statement of income. Franchised margins are franchised revenues less occupancy costs.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

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9 · Operating income bridge

Q3 operating margin rose 280 bps to 50.2% as other operating income rose

Operating and company-operated margins

% of revenues or sales, Q3 2025 vs. Q3 2026

Operating margin · Q3 2025: 47.4%Operating margin · Q3 2026: 50.2%Non-GAAP operating margin · Q3 2025: 48.0%Non-GAAP operating margin · Q3 2026: 51.0%Company-operated margin · Q3 2025: 15.3%Company-operated margin · Q3 2026: 15.8%Q3 2025Q3 20260.0%20.0%40.0%60.0%47.4%50.2%48.0%51.0%15.3%15.8%

Operating marginNon-GAAP operating marginCompany-operated margin

Company-operated margin rose 55 bps to 15.8%

Note: Operating margin is operating income divided by total revenues; Q3 figures, not the nine-month figures in the release.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

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10 · Margin analysis

Q3 dividends and buybacks totalled about $1.8B, including $519M of share repurchases

Dividends and share repurchases

$M, Q3 2026

$M · Dividends: $1,300M$M · Buybacks: $519M$M · Total: $1,819MDividendsBuybacksTotal$0M$500M$1,000M$1,500M$2,000M$1,300M$519M$1,819M
The quarterly dividend rises 3.8% to $1.93 per share

Note: Dividends are approximate, as stated. Nine-month dividends were about $4.0B and buybacks about $1.8B.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

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11 · Capital returns

Systemwide restaurants rose 4.4% to 46,554, with China adding 893 of them

Systemwide restaurants by segment

At September 30, 2025 and 2026

Segment20252026ChangeYoY
U.S.13,63313,821+188+1.4%
IOM10,64310,986+343+3.2%
IDL20,32321,747+1,424+7.0%
of which China7,5028,395+893+11.9%
Total44,59946,554+1,955+4.4%
China supplied 45.7% of net additions; the company targets 50,000 units by end of 2028

Note: IOM is International Operated Markets; IDL is International Developmental Licensed Markets & Corporate. China is part of IDL.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

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12 · Systemwide restaurant count

Franchised sales rose 4.5% to $35.6B, led by a 9.0% rise in IDL

Franchised sales by segment

$M, Q3 2025 vs. Q3 2026

SegmentQ3 2025Q3 2026YoY
U.S.$13,376M$13,582M+1.5%
IOM$11,439M$11,931M+4.3%
IDL$9,279M$10,113M+9.0%
Total$34,093M$35,625M+4.5%
Systemwide sales rose 4% in constant currency, with IDL up 9%

Note: IOM is International Operated Markets; IDL is International Developmental Licensed Markets & Corporate. Franchised sales are not company revenues; they are the base for rent and royalties. Growth is in US dollars.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

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13 · Franchised sales by segment

Q3 operating income leaned on $97M of restaurant sale gains, up from $35M

Indicator
What to watch
Implication
Latest reading
U.S. guest counts
Value menus from early 2027
U.S. sales stay flat
U.S. comparable sales -0.2%
Restaurant sale gains
Gains repeat in Q4
Operating income growth slows
26.1% of the Q3 operating income rise
IOM comparable sales
France stays weak
IOM growth lags
IOM comparable sales +1.4%
Unit growth
Fewer openings in 2026
Unit expansion adds less
Openings outlook -100

Note: IOM is International Operated Markets. These are analytical watch points, not company targets. Value-menu timing and France comments are from CNBC call coverage.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data; CNBC, Nov 4, 2026

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14 · Key risks to outlook

Appendix: segment revenue detail

ClaimEvidenceCalculation
U.S. franchised revenues rose+1.9% to $1,943MRent and royalties
IOM company-operated sales fell-3.3% to $1,591MFewer company-operated restaurants
IDL franchised revenues rose+8.3% to $537MIDL includes Corporate
Other revenues rose+25.2% to $189MTechnology fees and brand licensing

IOM is International Operated Markets; IDL is International Developmental Licensed Markets & Corporate. Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

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15 · Appendix: Segment detail

16 · Appendix: Profit and margins

17 · Appendix: Outlook detail

18 · Appendix: Other operating income

Appendix: revenue and operating cost detail

Revenues, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Franchised revenues$4,363M$4,487M2.8%
Company-operated sales$2,563M$2,480M(3.2%)
Other revenues$151M$189M25.2%
Total revenues$7,078M$7,157M1.1%

Operating costs, $M

$MQ3 2025Q3 2026
Franchised occupancy$666M$687M
Company-operated expenses$2,172M$2,088M
SG&A$785M$759M
Other operating (income), net($37M)($139M)

Note: Other restaurant expenses ($167M; $135M) are not shown.Source: McDonald's Form 8-K, Nov 4, 2026; McDonald's supplemental information, Nov 4, 2026; analysis of company data

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19 · Appendix: Revenue and costs

Appendix: sources

  • Filing: McDonald's Form 8-K, Nov 4, 2026 — https://www.sec.gov/Archives/edgar/data/63908/000006390826000080/0000063908-26-000080-index.html
  • Earnings release, Q3 2026 (Ex. 99.1) — https://www.sec.gov/Archives/edgar/data/63908/000006390826000080/exhibit991-9302026.htm
  • Supplemental information, Q3 2026 (Ex. 99.2) — https://www.sec.gov/Archives/edgar/data/63908/000006390826000080/exhibit992-9302026.htm
  • Prior outlook: Q2 2026 supplemental information (Ex. 99.2), Aug 4, 2026 — https://www.sec.gov/Archives/edgar/data/63908/000006390826000067/exhibit992-6302026.htm
  • Consensus: LSEG and StreetAccount via CNBC, Nov 4, 2026 — https://www.cnbc.com/2026/11/04/mcdonalds-is-about-to-report-earnings-heres-what-to-expect.html
  • Consensus: Zacks via Yahoo Finance, Nov 4, 2026 — https://finance.yahoo.com/markets/stocks/articles/mcdonalds-mcd-q3-earnings-key-133005526.html
  • Share price: Yahoo Finance MCD, Nov 3 close, Nov 4 pre-market and intraday — https://finance.yahoo.com/quote/MCD/
  • No Form 10-Q for Q3 2026 was on EDGAR when this deck was built, so no balance sheet or cash flow statement is shown.

Built with DeepCell / deepcell.net

20

20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from McDonald's Form 8-K of November 4, 2026 (Exhibits 99.1 and 99.2) and, for the prior outlook, its Form 8-K of August 4, 2026. Consensus estimates (LSEG, StreetAccount, Zacks) and share prices (Yahoo Finance) are third-party data, credited on the sources page. We have not independently verified third-party data.

Basis of presentation. Q3 2026 and Q3 2025 are the quarters ended September 30. Franchised and Systemwide sales are not company revenues. Dividends paid are approximate, as stated by the company.

Forward-looking statements. Company outlook, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Non-GAAP measures. Adjusted (non-GAAP) operating income, net income and EPS exclude charges as defined by McDonald's and are reconciled to GAAP in its release. They may not be comparable with other companies' measures.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by McDonald's Corporation. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings.

Date of analysis. The analysis reflects information available on November 4, 2026, during US market hours. The November 4 close was not yet available.

Built with DeepCell / deepcell.net

21

21 · Disclosures

Sources

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