MCD · 10-Q · 2026Q2 · Full report

Operating Margin Drivers

MCDONALDS CORP · 2026-08-07 · Importance 49 · Surprise 32 · No source text

Six-month operating income increased 7% to $6.292 billion, while second-quarter operating income increased 3% to $3.338 billion. Consolidated operating margin improved to 46.2% from 45.9% for the six months, and adjusted operating margin increased to 47.0% from 46.8% based on reported adjusted operating income of $6.391 billion. Operating income growth primarily reflected higher sales-driven franchised margins and higher other operating income across all segments, partly offset by increased selling, general and administrative expenses. International Operated Markets operating income rose to $3.230 billion from $2.924 billion for the six months, while International Developmental Licensed Markets & Corporate improved to a $14 million loss from a $33 million loss.

Key facts

• The Company expects 2026 operating margin percent to be in the mid-to-high 40% range. source
• Non-GAAP operating income for the quarter was $3,391 million compared to $3,275 million prior year; Non-GAAP operating margin was 46.9% vs 46.8%. source
• Operating income by segment for the quarter: U.S. $1,573 million; International Operated Markets $1,723 million; International Developmental Licensed Markets & Corporate $(40) million; Total $3,338 million. source
• Operating income increased $106 million, or 3% (2% in constant currencies), for the quarter and $411 million, or 7% (4% in constant currencies), for the six months. source
• Other operating (income) expense, net included gains on sales of restaurant businesses of $(40) million for the quarter and $(7) million for the prior year quarter. source
• Consolidated operating income increased 3% (2% in constant currencies) for the quarter and 7% (4% in constant currencies) for the six months. source
• Equity in earnings of unconsolidated affiliates was $(60) million for the quarter and $(54) million for the prior year quarter. source

Impact estimates