MCD · Earnings call · 2026Q3T · Full report
Operating Expense Trends
MCDONALDS CORP · 2026-11-04 · Importance 26 · Surprise 24 · In source text
SG&A expenses were 2% of systemwide sales in the third quarter, and management maintained its full-year expectation of approximately 2.2%. Management said investments in global systems, shared capabilities, and enterprise data are expected to improve SG&A efficiency as a percentage of systemwide sales beginning in 2027. The transcript did not provide a dollar amount for the expected efficiency improvement.
Key facts
- McDonald’s expects mid-single-digit food and paper inflation in 2027.
- SG&A was 2% of systemwide sales in Q3; full-year 2026 SG&A is expected to be approximately 2.2% of systemwide sales.
- Investments in global systems, shared capabilities, and enterprise data are expected to begin improving SG&A efficiency as a percentage of systemwide sales in 2027.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | probable | — | McDonald’s expects mid-single-digit food and paper inflation in 2027. |