McDonald's Corporation Shs -CAD hedged- Canadian Depositary Receipt Repr Shs Reg S (MCD) Q2 2026 Earnings Report

The call combined strong long-term strategic progress, global growth, resilient margins, digital scale and encouraging beverage results with a meaningful U.S. execution setback. Management acknowledged that U.S. comparable sales were below expectations, July comps were slightly negative, marketing and value programs underperformed, and customer satisfaction declined, while outlining corrective actions. The breadth of the long-term achievements and planned responses was balanced by near-term U.S. weakness and external consumer pressures.

Management currently estimates a tailwind of about $0.15 from foreign currency translation on full year 2026 adjusted EPS, down from the previously estimated range of a $0.20 to $0.30 tailwind, and expects G&A to be about 2.2% of system-wide sales for the full year; it expects to reach 50,000 restaurants globally in 2028, remain on track to open about 2,600 gross restaurants by the end of this year, and continue incremental company-owned restaurant divestitures in 2026 and beyond. Management expects IOM and IDL comparable sales growth to accelerate sequentially in Q3 from the 1.5% and 1.9% comps in Q2, respectively, with comparable sales in both segments also accelerating on a 2-year stack basis, expects the U.S. to be in a stronger position as it exits 2026, and said marketing should be fully back to where it needs to be in 2027; in 2027, it expects to begin to see the benefits from global systems and process investments as it seeks to lower G&A percentage spend.