MCD · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

MCDONALDS CORP · 2026-11-06 · Importance 37 · Surprise 6

Franchised restaurant margins totaled $3.800 billion for the third quarter and $10.844 billion for the first nine months of 2026, with franchised margins representing approximately 90% of restaurant margin dollars. Franchised margins benefited from positive franchised sales performance across all segments, and nine-month results also benefited from currency translation in International Operated Markets and International Developmental Licensed Markets. U.S. Company-operated margins were pressured by ongoing inflationary costs in both periods; International Operated Markets’ nine-month margin benefited from currency translation, partly offset by inflationary costs. Total restaurant margins included depreciation and amortization of $448 million in the quarter and $1.4 billion in the nine months.

Key facts

• Franchised margins represented approximately 90% of restaurant margin dollars. source
• Restaurant margins included depreciation and amortization expense of $448 million and $438 million for the quarters ended 2026 and 2025, respectively, and $1.4 billion and $1.3 billion for the nine months. source
• Franchised margins in both periods benefited from positive franchised sales performance across all segments; the nine months also benefited from favorable currency translation in the international segments. source
• Company-operated margins in the U.S. for both periods primarily reflected ongoing inflationary cost pressures. source
• International Operated Markets company-operated margins for the nine months benefited from favorable currency translation, partly offset by ongoing inflationary cost pressures. source