Q2 2026 McDonald's Corp Earnings Call Transcript
Key Points
- Global comparable sales grew 1.3% with positive growth across all operating segments, driven by strong performance in international markets like Germany, Australia, and the UK.
- System-wide sales grew 4% in constant currency, reflecting continued contribution from new restaurant openings.
- The new beverage platform, launched in the US, Canada, and Germany, exceeded expectations, with strong sales, higher guest checks, and new daypart occasions, including a 50% higher average check than the full-day average.
- Digital and loyalty platform continues to scale, with nearly 220 million active loyalty users globally and Japan's loyalty program driving its 10th consecutive quarter of positive comparable sales growth.
- Management remains confident in long-term value creation, citing the new 'McDonald's Next' strategy, which has over 90% franchisee support and is expected to be self-funded through productivity gains.
- Adjusted EPS grew 5% on a constant currency basis, with restaurant margins exceeding $4 billion in the quarter, highlighting business model resiliency.
- US comparable sales growth slowed significantly to 0.8% in Q2, below expectations, due to inconsistent execution of the new value menu and a pullback on digital offers that alienated loyal customers.
- Restaurant operations were overwhelmed by too many deployments, leading to slower service times and lower customer satisfaction scores.
- The FIFA campaign in June underperformed expectations, contributing to the US traffic miss.
- The 50,000 restaurant target was pushed out to 2028 from 2027 due to a pressured consumer environment and inflationary development costs.
- France's performance continued to fall short of expectations, with the market needing time to improve alignment and execution.
- US comparable sales were slightly negative in July, indicating that execution issues are persisting into Q3.
Hello, and welcome to McDonald's second-quarter 2026 investor conference call. At the request of McDonald's Corporation, this conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to Mr. Dexter Congbalay, Vice President of Investor Relations for McDonald's Corporation. Mr. Congbalay, you may begin.
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Good morning, everyone, and thank you for joining us. With me on the call today are Chairman and Chief Executive Officer, Chris Kempczinski; and Chief Financial Officer, Ian Borden.
As a reminder, the forward-looking statements in our earnings release and 8-K filing also apply to our comments on the call today. Both of those documents are available on our website, as are reconciliations of any non-GAAP financial measures mentioned on today's call, along with their corresponding GAAP measures.
Following prepared remarks this morning, we will take your questions. (Event Instructions) Today's conference call is
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