LAST 3 MONTHS

1. SALES

SHARES: 707.6M · EPS: 3.34 $

Comparable Sales (Comps Q): +1.3 % | Traffic: ▼ | Average check: ▲

• *1: Gross profit is calculated as total sales less direct business costs (franchised restaurant occupancy expenses, company-operated restaurant expenses, and other restaurant expenses), following McDonald's criteria. Operating profit is derived from gross profit less reported operating expenses (SG&A and other): 4118M − 780M = 3338M, which matches GAAP operating income. There were no impairments or amortization of intangibles to adjust in the period, so the Adjusted column matches the Normal one. Results include net pre-tax charges of 52M$ (0.06$/share) mainly related to Accelerating the Organization restructurings.

2. CASH FLOW

• *1: WC = average of the last 10 fiscal years: -0.6%. As it is quarterly, the annual amount is divided by 4 = -14.2M. Deviation of reported working capital (-50M) versus theoretical WC (-14.2M): -35.8M. Cash Flow after the working capital adjustment is: 2810M - (-35.8M) = 2845.8M.

3. CAPITAL ALLOCATION

It roughly adds up. Still, I may have missed some detail.

• *1: Acquisitions: 153M was allocated to the purchase of restaurant businesses from franchisees (purchases of restaurant businesses), not material individually or in the aggregate (use of funds). Divestitures: 158M was received from the sale of restaurant businesses to franchisees (sales of restaurant businesses), not material individually or in the aggregate (source of funds).
• *2: Balance sheet debt: 40105M -> 39863M (-242M). Net debt: 38935M -> 39041M (+106M). Balance sheet cash: 1170M (Q1) -> 822M (Q2) (-348M); cash decreased: source of liquidity (+); Cash row = +348M.

FULL YEAR TO DATE (6 MONTHS)

1. SALES

SHARES: 707.6M · EPS: 6.14 $

• *1: Gross profit is calculated as total sales less direct business costs (franchised restaurant occupancy expenses, company-operated restaurant expenses, and other restaurant expenses), following McDonald's criteria. Operating profit is derived from gross profit less reported operating expenses (SG&A and other): 7761M − 1469M = 6292M, which matches GAAP operating income. There were no impairments or amortization of intangibles to adjust in the period, so the Adjusted column matches the Normal one. Results include net pre-tax charges of 99M$ (0.11$/share) mainly related to Accelerating the Organization restructurings.

2. CASH FLOW

• *1: WC = average of the last 10 fiscal years: -0.6%. As it is a 6-month horizon, the annual amount is prorated by months elapsed (n/12) = -28.4M. Deviation of reported working capital (-215M) versus theoretical WC (-28.4M): -186.6M. Cash Flow after the working capital adjustment is: 5222M - (-186.6M) = 5408.6M, an intermediate subtotal after the working capital adjustment.
• *2: Taxes: The company should have paid 1259.9M in taxes (23% on adjusted EBT of 5478M) and only an estimated payment of 1128M is recorded, calculated from the tax expense reconciliation less deferred taxes (the cash flow statement does not break out cash paid). Adjustment of -131.9M to Normalized Cash Flow due to the tax discrepancy. The final figure combines the adjustments to Cash Flow: 5408.6M (subtotal after working capital) -131.9M (taxes) = 5276.7M.

3. CAPITAL ALLOCATION

It roughly adds up. Still, I may have missed some detail.

• *1: Acquisitions: 153M was allocated to the purchase of restaurant businesses from franchisees (purchases of restaurant businesses), not material individually or in the aggregate (use of funds). Divestitures: 265M was received from the sale of restaurant businesses to franchisees (sales of restaurant businesses), not material individually or in the aggregate (source of funds).
• *2: Balance sheet debt: 39973M -> 39863M (-110M). Net debt: 39199M -> 39041M (-158M). Balance sheet cash: 774M (2025) -> 822M (2026) (+48M); cash increased: use of capital (-); Cash row = -48M.

QUARTERLY NOTES AND RELEVANT INFORMATION

Guidance · Guidance maintained

The company maintains its full-year 2026 outlook unchanged from previous guidance: systemwide sales growth from net restaurant expansion of ~2.5% in constant currency; SG&A expenses of ~2.2% of systemwide sales; operating margin in the mid-to-high 40% range; interest expense +4% to +6%; effective tax rate of 21% to 23%; CAPEX of 3,700M$ to 3,900M$; and free cash flow conversion in the low-to-mid 80% range.

• Appointment of Skye Anderson as President of McDonald's USA: Skye Anderson, an executive with extensive experience at McDonald's, has been appointed President of McDonald's USA to lead the company's largest market, with the goal of accelerating U.S. performance.
• Accelerating the Organization restructuring: The company expects to incur approximately 250M$ in restructuring charges in 2026, mainly related to professional services costs. In the standalone quarter, 52M$ of net pre-tax charges were recognized (the filing does not break out the quarter's restructuring charge separately), and in the 2026 year-to-date they amount to 99M$; since the initiative began in 2023, the cumulative total amounts to 795M$.

Restaurant network and comparable sales

Hybrid model: revenues mix royalties and rents from franchised restaurants with sales from company-operated restaurants; consolidated margin does not equal restaurant margin and details are developed in the franchised network and company-operated restaurants sections. Q2 2026 comps: +1.3% (global system comps); they measure the system (mature stores), not the company's accounting revenues, and are cited as published by the company. Q2 2026 comps breakdown published by the company: U.S. +0.8%, international operated markets (IOM) +1.5%, international developmental licensed markets (IDL) +1.9% — driven by average ticket (pricing); held back by traffic. Comps drivers, according to the report: U.S. comps were driven by positive check growth, including favorable mix, partly offset by negative guest counts. Main driver (average ticket), validated literal quote: «Comparable sales results for both periods were primarily driven by positive check growth, including favorable product mix, partly offset by negative comparable guest counts.». The network ended Q2 2026 with 46,028 restaurants, a change of +0.7% from the previous close. Company revenues (Q2 2026): 7,099M$. This is what the company earns according to its income statement (royalties, rents, fees, supplies to franchisees, and sales from its company-operated restaurants), well below systemwide sales in franchised models. Deterministic series built with data from the filings themselves (XBRL revenues; network and comps from the text, with validated quote). It is an operating data point, not a prediction: without the data in the filing, the row is omitted.

Franchised network

The franchised network generates royalties, rents, and fees that scale with systemwide sales; net franchisee openings are the engine of future royalties. Reported franchised operating margin (Q2 2026) was 3,713M$, 84.5% of franchised revenues for the same period; it is the channel profit before corporate expenses (the filing does not break out gross or net margin by channel). At period end, 44,016 of 46,028 restaurants were franchised (+95.6%). Figures published by the filing; they are not recalculated or extrapolated.

Company-owned restaurants

Company-operated restaurants are judged by unit economics: AUV, restaurant-level margin, and payback on openings; food & paper and labor are the two dominant operating costs. Reported operating margin for company-operated restaurants (Q2 2026) was 387M$, 15.3% of company-operated restaurant sales for the same period; it is the channel margin at the restaurant level (the filing does not break out gross or net margin by channel). Figures published by the filing; they are not recalculated or extrapolated.