McDonald's (1MCD) Q3 2026 Earnings Report

The call conveyed a cautiously constructive outlook. Earnings, international performance, specialty beverages, digital engagement, franchising progress, and the McDonald's NEXT rollout were positive, while U.S. comparable sales remained negative for the quarter and France, China, marketing execution, inflation, and the slightly lower gross-opening outlook presented ongoing challenges. Management expressed confidence in improving U.S. momentum but did not provide a commitment that fourth-quarter U.S. comparable sales would exceed the third-quarter level.

McDonald’s expects no impact of foreign currency translation on adjusted earnings per share for the fourth quarter versus the prior year based on current exchange rates; full-year SG&A as a percentage of systemwide sales is expected to be approximately 2.2%; 2,500 gross restaurant openings globally this year, slightly below the target of 2,600, and approximately 2,100 net restaurant openings; 2026 capital expenditures of about $3.7 billion, at the low end of the previously guided range of $3.7 billion-$3.9 billion; a new U.S. entry-level value program nationally in early 2027; specialty beverages across nearly all European markets by mid-2027 and more than 7,000 additional restaurants across Europe by mid-2027; full advertised hand-breaded chicken sales tests in about 100 restaurants in a couple U.S. cities in early 2027 and a complete full national rollout across Ireland; hundreds of U.S. restaurant remodels in 2027 and a global run rate in excess of 5,000 restaurants per year beginning in 2028; Archy across a majority of U.S. restaurants by the end of 2027; 98% of the global restaurant portfolio franchised by 2028; mid-single-digit food and paper inflation in 2027; and delivery globally growing mid to high single digits.