MCD · 10-Q · 2026Q2 · Full report

Interest Rate Outlook

MCDONALDS CORP · 2026-08-07 · Importance 47 · Surprise 32 · In source text

Interest expense increased 6% for the six months ended June 30, 2026, primarily because of higher average interest rates and foreign currency translation. Based on current interest rates, McDonald’s expects full-year 2026 interest expense to increase 4% to 6%, driven primarily by higher average interest rates. Lower average cash balances and lower average interest rates also reduced interest income during the period.

Key facts

• Based on current interest and foreign currency exchange rates, the Company expects interest expense for the full year 2026 to increase between 4% and 6% driven primarily by higher average interest rates. source
• Interest expense increased 5% (4% in constant currencies) for the quarter and 6% (4% in constant currencies) for the six months, primarily reflecting higher average interest rates and the impact of foreign currency translation. source
• Interest income decreased for both periods due to lower average cash balances and lower average interest rates (interest income $(11) million for the quarter and $(20) million prior year quarter). source

Impact estimates