McDonald's Corporation Q1 FY2026 earnings call

• Strategic execution: Demonstrated consistent execution across value, marketing, and menu innovation, leading to growth in global comparable sales and market share gains in nearly all top 10 markets. • Value leadership: Focused on strengthening value leadership, with initiatives like McValue in the U.S. and international markets, offering compelling value and meal deals. • Marketing campaigns: Launched various campaigns like Friend campaign, Super Mario Galaxy Happy Meal, K-Pop Demon Hunters partnership, and Friends TV show Theme Promotion, driving traffic and brand engagement. • Menu innovation: Successfully executed beverage tests and launches in various markets, and large burger and chicken campaigns in key markets, maintaining relevance and driving sales.

In Q1, global system-wide sales grew 6% in constant currency, and global comparable sales grew 3.8%. In the U.S., comparable sales grew 3.9%. International operated markets comparable sales grew 3.9% in the first quarter. International developmental licensed markets comparable sales grew 3.4%. Each segment showed solid growth with strong execution across value, marketing, and menu innovation.

• Q2 expects meaningful deceleration in comp sales from Q1 levels due to April's soft performance, but expects comp sales to accelerate on a two-year stack basis. • Reaffirms full-year 2026 financial targets. • Foreign currency expected to be a full-year tailwind to 2026 EPS in the range of 20 to 30 cents.

• Impact of the war in the Middle East on operating environment, including potential cost inflation and volatility. • Supply chain disruptions posing risk of higher cost inflation in the longer term. • Macro-economic challenges and consumer sentiment affecting lower-income consumers' spending.

Q: Following another solid U.S. sales performance in the quarter, can you talk a bit more about how you're thinking about the U.S. sales trajectory over the balance of 26?

A: Feel good about the plan in place, expecting to benefit from McValue program, menu innovation, and marketing news, focusing on what can be controlled despite macro backdrop.

Q: Just to talk a little bit about kind of Q2 and beyond, can you elaborate?

A: Expect Q2 comp sales to decelerate from Q1 levels due to April's soft performance, but expect comp sales to accelerate on a two-year stack basis for each segment.