MCD · 10-Q · 2026Q2 · Full report

Operating Expense Trends

MCDONALDS CORP · 2026-08-07 · Importance 36 · Surprise 40 · In source text

Selling, general and administrative expense increased $117 million, or 17%, in the second quarter and $193 million, or 14%, for the six months. The increases primarily reflected higher employee costs, including incentive compensation, and expenses related to the 2026 Worldwide Owner/Operator convention. SG&A represented 2.2% of systemwide sales for the six months, compared with 2.1% in the prior-year period. Company-owned restaurant expenses increased to $4.170 billion from $3.937 billion for the six months, consistent with higher restaurant operating costs and inflationary pressure.

Key facts

• The Company expects full year 2026 Selling, general and administrative expenses of about 2.2% of Systemwide sales. source
• Total restaurant margins included depreciation and amortization expense of $454 million for the quarter ended 2026 and $425 million for the quarter ended 2025. source
• Selling, general and administrative expenses increased $117 million, or 17% (16% in constant currencies) for the quarter and $193 million, or 14% (12% in constant currencies) for the six months. source
• Selling, general and administrative expenses for the six months were 2.2% of Systemwide sales in 2026 and 2.1% in 2025. source

Impact estimates