MCDONALDS CORP
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
MCD$276.52-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0000063908-26-000073
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0000063908-26-000083
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 221 previous paragraphs and 231 current paragraphs.
149 unchanged; 57 reworded; 24 added; 14 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
McDonald’s > NEXT (the “Strategy”) is the Company’s long-term strategy to advance its ambition to be the first choice for more customers, more often. Through four interconnected pillars (Menu, Consumer, Restaurant and People), the Company intends to generate more demand and deliver it more efficiently to drive growth by elevating taste and quality, deepening customer relationships, improving customer and restaurant experiences and redefining hospitality.
Current report
The Strategy is intended to be an engine of growth and productivity. Elevating taste, quality and the customer experience is expected to create more first choice occasions. Creating more first-choice occasions is intended to drive guest-count growth. Guest-count growth, together with improved restaurant efficiency, is expected to strengthen restaurant economics. Stronger restaurant economics, in turn, are expected to create additional capacity to reinvest in the customer experience and future growth, reinforcing the cycle of growth and productivity. The Strategy is designed to drive durable comparable sales growth, increase market share, enhance restaurant productivity, support strong earnings growth and generate System and shareholder returns.
Current report
Growth & Productivity Pillars
Current report
•Menu > NEXTis designed to elevate taste and quality through gold standard execution and disciplined menu innovation to drive stronger preference, more first choice occasions and increase baseline guest-count growth, while continuing to strengthen the Company’s position in its core categories: beef, chicken and beverages. As part of the Strategy, the Company aims to gain approximately 1.5 percentage points of market share in both the chicken and beverage categories by the end of 2030, versus September 2026 share, while maintaining its leadership position in the beef category. More broadly, value remains foundational to Menu > NEXT as the Company seeks to deliver the combination of great taste, quality, convenience and affordability that customers expect.
Current report
•Consumer > NEXTis designed to capitalize on McDonald’s brand fandom and further deepen individual customer relationships to generate more visits over time. The Company intends to leverage its distinctive brand assets, customer insights, loyalty ecosystem and digital capabilities to provide greater value to customers. These efforts are intended to generate more first-choice occasions, increase visit frequency and contribute to sustained guest-count-led growth over time.
Current report
•Restaurant > NEXTis designed to support growth and productivity through elevated execution, simplifying operations, modernizing restaurant design and deploying cloud-based and artificial intelligence (“AI”) enabled technology, such as our new generative AI restaurant operating system, ArchIQ, at scale. These initiatives are intended to make restaurants easier to operate, improve restaurant efficiency and support restaurant crew in consistently serving great-tasting food and delivering a strong customer experience. Through these efforts, the Company expects to deliver approximately 250 basis points of gross restaurant-level efficiency gains as Restaurant > NEXT elements are fully deployed across the U.S. and International Operated Markets.
Current report
•People > NEXTis designed to equip restaurant crew to deliver an improved level of hospitality that creates a better, more consistent experience for customers. Through Make It Golden, a multi-year Systemwide commitment to elevate the customer experience through great food and great hospitality that are uniquely McDonald’s, the Company intends to build capabilities that can be taught, measured and scaled across the System, and that strengthen customer preference and encourage repeat visits.
Current report
Global comparable sales increased 1.5% for the quarter and 2.1% for the nine months.
Current report
•Consolidated revenues increased 1% (1% in constant currencies) for the quarter and 5% (2% in constant currencies) for the nine months.
Current report
•Systemwide sales increased 4% (4% in constant currencies) for the quarter and 6% (5% in constant currencies) for the nine months.
Current report
•Net pre-tax charges of $39 million, or $0.04 per share, for the quarter and $148 million, or $0.16 per share, for the nine months, primarily related to restructuring charges associated with Accelerating the Organization
Current report
•Equity in earnings of unconsolidated affiliates for both periods primarily reflected higher equity in earnings in China as a result of improved restaurant operating performance.
Current report
2026 Outlook
Current report
Long-Term Outlook
Current report
Over the long-term, the Company expects to achieve the following financial targets.
Current report
•The Company expects full year Selling, general and administrative expenses of about 1.9% of Systemwide sales by the end of 2030.
Current report
•The Company expects full year operating margin percent to be in the low-to-mid 50% range by the end of 2030.
Current report
•The Company expects about $3 billion of annual baseline capital expenditures plus $1.5 billion to $2 billion of cumulative capital partnering support to accelerate deployment of Restaurant > NEXT from 2027 through the end of 2030, based on current foreign currency exchange rates.
Current report
•The Company is targeting 50,000 global units by the end of 2028.
Current report
•The Company expects to achieve a full year free cash flow conversion rate in the mid-to-high 80% range by the end of 2030.
Current report
•elevate the taste and quality of our food and beverages through Gold Standard execution and innovation of our menu to deliver food that customers seek and create experiences that drive guest count growth and capture unmet demand;
Current report
•build upon our investments to transform and enhance the customer experience, including evolving how we grow our brand through globally-scaled campaigns that are purposefully designed to be carried by fans and creators and building deeper customer relationships through our loyalty program, to drive more frequent visits;
Current report
•achieve excellence in execution, including by equipping restaurant teams across the System, including those of our franchisees, with the training, tools and operating standards needed to deliver excellent food and hospitality, including through our Make It Golden Systemwide commitment to elevate the customer experience;
Current report
•accelerate our existing strategies, including through growth opportunities and building Company data, analytics and AI capabilities that unlock greater speed, innovation and efficiency and support ongoing efforts to reduce costs; and
Removed paragraphs (14)
Previous report
Introduced in 2020 and refreshed in 2023, the Company’s Accelerating the Arches strategy has been built on three growth pillars: Maximize our Marketing, Commit to the Core and Double Down on the 4D’s (Digital, Delivery, Drive Thru and Restaurant Development). Through these growth pillars, the Company has invested in culturally relevant marketing, focused on its iconic products, expanded its digital ecosystem and delivery capabilities, enhanced its drive thru advantage and accelerated restaurant development.
Previous report
Building on the foundation established by Accelerating the Arches, in June 2026, the Company introduced McDonald’s > NEXT (the “NEXT Strategy”), its strategy to unlock the next era of growth and productivity. McDonald's > NEXT is how the Company will meet customers’ expectations for great value, great tasting food, great hospitality, convenience and affordability by elevating taste and quality, co-creating with our fans, unlocking better customer and restaurant experiences, and redefining hospitality.
Previous report
Growth Pillars
Previous report
•Menu > NEXTis focused on elevating taste and quality across its menu while continuing to strengthen the Company’s position in its core categories: beef, chicken and beverages. Through menu innovation and operational excellence, the Company aims to deliver food that customers crave and create experiences that drive guest count growth.
Previous report
•Consumer > NEXTis focused on creating more personal, relevant and engaging experiences that strengthen customers’ connection to the McDonald’s brand and encourage more visits. The Company aims to deepen customer relationships by combining the power of its brand, the influence of its fandom, the breadth of its customer insights and the scale of its digital capabilities to drive demand.
Previous report
•Restaurant > NEXTis intended to improve restaurant efficiency with AI-enabled operating systems that reduce complexity and enable restaurant teams to serve customers great tasting food more effectively. The Company is focused on improving customer and restaurant experiences through technology, operational simplification, and holistic restaurant design that will improve operations, increase capacity and enhance the experience for crew and customers.
Previous report
•People > NEXT makes excellence in execution for taste, quality, and hospitality the standard that restaurants are taught, measured on and coached to deliver. This includes equipping restaurant teams with improved tools, support and smarter ways of working to deliver exceptional hospitality, better serve customers, and strengthen the overall restaurant performance and resulting guest experience.
Previous report
Global comparable sales increased 1.3% for the quarter and 2.5% for the six months.
Previous report
•Consolidated revenues increased 4% (2% in constant currencies) for the quarter and 6% (3% in constant currencies) for the six months.
Previous report
•Systemwide sales increased 5% (4% in constant currencies) for the quarter and 8% (5% in constant currencies) for the six months.
Previous report
•Pre-tax charges of $43 million, or $0.05 per share, for the quarter and $109 million, or $0.12 per share, for the six months, primarily related to restructuring charges associated with Accelerating the Organization
Previous report
Outlook
Previous report
•build upon our investments to transform and enhance the customer experience, including building one of the world’s largest consumer platforms to fuel engagement;
Previous report
•accelerate our existing strategies, including through growth opportunities and building a modern company platform that unlocks speed and innovation throughout the organization; and
Reworded paragraphs (57)
Previous wording
The Company franchises and owns and operates McDonald's restaurants, which serve a locally relevant menu of quality food and beverages in communities across more than 100 countries. Of the 46,028 McDonald's restaurants at June 30, 2026, approximately 95% were franchised.
Current wording
The Company franchises and owns and operates McDonald's restaurants, which serve a locally relevant menu of quality food and beverages in communities across more than 100 countries. Of the 46,554 McDonald's restaurants at September 30, 2026, approximately 95% were franchised.
Previous wording
As was true with the Accelerating the Arches strategy, at the heart of the NEXT Strategy are the Company’s purpose, mission and values which underpin our success.
Current wording
At the heart of the Strategy are the Company’s purpose, mission and values which underpin its success.
Previous wording
The Company believes that its people, all around the world, set it apart and bring these values to life daily.
Current wording
The Company believes that its people, all around the world, set it apart and bring these values to life daily. The Strategy continues to reflect and advance the Company’s purpose, mission and values and is comprised of four interconnected pillars.
Previous wording
The Company believes the size, scale, agility and the power of the McDonald’s brand positions it well to execute on the NEXT Strategy and create long-term value for customers, franchisees and shareholders.
Current wording
The Company intends to deploy the Strategy with discipline, pairing globally scaled solutions with local market insights. The timing and sequencing of initiatives will vary by market based on local factors including customer needs, restaurant readiness, technology prerequisites and local economics. To support implementation of the Strategy, the Company plans to provide approximately $8.5 billion in total cash partnering support through the end of 2036, including approximately $5 billion in cash partnering by the end of 2030, through a combination of rent relief and capital support. The Company believes the size, scale, agility and the power of the McDonald’s brand positions it well to execute on the Strategy and create long-term value for customers, franchisees and shareholders.
Previous wording
The NEXT Strategy is aligned with the Company’s capital allocation philosophy of (i) investing in opportunities to grow the business and drive strong returns, including capital expenditures and investments in technology and other capabilities, (ii) prioritizing its dividend, and (iii) repurchasing shares with remaining free cash flow over time.
Current wording
The Strategy is aligned with the Company’s capital allocation philosophy of (i) investing in opportunities to grow the business and drive strong returns, including capital expenditures and investments in technology and other capabilities, (ii) prioritizing its dividend and (iii) repurchasing shares with remaining free cash flow over time.
Previous wording
Second Quarter and Six Months 2026 Financial Performance
Current wording
Third Quarter and Nine Months 2026 Financial Performance
Previous wording
•U.S. comparable sales increased 0.8% for the quarter and 2.3% for the six months. Comparable sales results for both periods were primarily driven by positive check growth, including favorable product mix, partly offset by negative comparable guest counts.
Current wording
•U.S. comparable sales decreased 0.2% for the quarter and increased 1.4% for the nine months. Comparable sales results for the quarter declined slightly as negative comparable guest counts were largely offset by positive check growth. Comparable sales for the nine months were primarily driven by positive check growth, including favorable product mix, partly offset by negative comparable guest counts.
Previous wording
•International Operated Markets comparable sales increased 1.5% for the quarter and 2.6% for the six months. Most markets reflected positive comparable sales for both periods, led by Germany, Australia and the U.K., partly offset by France.
Current wording
•International Operated Markets comparable sales increased 1.4% for the quarter and 2.2% for the nine months. Most markets reflected positive comparable sales for both periods, led by Germany and Australia, as well as the U.K. for the nine months, partly offset by negative comparable sales in France for both periods.
Previous wording
•International Developmental Licensed Markets comparable sales increased 1.9% for the quarter and 2.6% for the six months. Positive comparable sales for both periods were led by Japan, with all geographic regions reflecting positive comparable sales. Comparable sales results for both periods were partly offset by negative comparable sales in China.
Current wording
•International Developmental Licensed Markets comparable sales increased 4.2% for the quarter and 3.2% for the nine months. Positive comparable sales for both periods were led by Japan, with all broader geographic regions reflecting positive comparable sales. Comparable sales results for both periods were partly offset by negative comparable sales in China.
Previous wording
In addition to the comparable sales results, the Company had the following financial results for the quarter and six months:
Current wording
In addition to the comparable sales results, the Company had the following financial results for the quarter and nine months:
Previous wording
•Consolidated operating income increased 3% (2% in constant currencies) for the quarter and 7% (4% in constant currencies) for the six months. Excluding current and prior year charges detailed in the Operating Income and Operating Margin section on page 29 of this report, consolidated operating income increased 4% (2% in constant currencies) for the quarter and 7% (3% in constant currencies) for the six months.
Current wording
•Consolidated operating income increased 7% (7% in constant currencies) for the quarter and 7% (5% in constant currencies) for the nine months. Excluding current and prior year charges detailed in the Operating Income and Operating Margin section on page 28 of this report, consolidated operating income increased 8% (8% in constant currencies) for the quarter and 7% (5% in constant currencies) for the nine months.
Previous wording
•Diluted earnings per share was $3.32 for the quarter, an increase of 6% (5% in constant currencies) and $6.10 for the six months, an increase of 6% (3% in constant currencies). Excluding current and prior year charges detailed in the Net Income and Diluted Earnings Per Share section on page 23 of this report, diluted earnings per share for the quarter was $3.38, an increase of 6% (5% in constant currencies) and $6.21, an increase of 6% (3% in constant currencies) for the six months.
Current wording
•Diluted earnings per share was $3.51 for the quarter, an increase of 10% (11% in constant currencies) and $9.61 for the nine months, an increase of 8% (6% in constant currencies). Excluding current and prior year charges detailed in the Net Income and Diluted Earnings Per Share section on page 22 of this report, diluted earnings per share for the quarter was $3.57, an increase of 11% (11% in constant currencies) and $9.78, an increase of 8% (6% in constant currencies) for the nine months.
Previous wording
The impact of foreign currency translation on consolidated operating results for the quarter and six months ended June 30, 2026 primarily reflected the strengthening of most major currencies against the U.S. Dollar, primarily driven by the Euro and the Australian Dollar.
Current wording
The impact of foreign currency translation on consolidated operating results for the quarter primarily reflected the weakening of most major currencies against the U.S. Dollar, primarily driven by the Euro, partly offset by the strengthening of the Australian Dollar. Results for the nine months ended September 30, 2026 primarily reflected the strengthening of most major currencies against the U.S. Dollar, primarily driven by the Euro and the Australian Dollar.
Previous wording
For the quarter, net income increased 5% (4% in constant currencies) to $2,362 million, and diluted earnings per share increased 6% (5% in constant currencies) to $3.32. Foreign currency translation had a positive impact of $0.03 on diluted earnings per share.
Current wording
For the quarter, net income increased 9% (9% in constant currencies) to $2,486 million, and diluted earnings per share increased 10% (11% in constant currencies) to $3.51. Foreign currency translation had a negative impact of $0.01 on diluted earnings per share.
Previous wording
For the six months, net income increased 5% (3% in constant currencies) to $4,345 million, and diluted earnings per share increased 6% (3% in constant currencies) to $6.10. Foreign currency translation had a positive impact of $0.17 on diluted earnings per share.
Current wording
For the nine months, net income increased 7% (5% in constant currencies) to $6,831 million, and diluted earnings per share increased 8% (6% in constant currencies) to $9.61. Foreign currency translation had a positive impact of $0.16 on diluted earnings per share.
Previous wording
•Net pre-tax charges of $52 million, or $0.06 per share, for the quarter and $99 million, or $0.11 per share, for the six months, primarily related to restructuring charges associated with the Company's internal effort to modernize ways of working (Accelerating the Organization)
Current wording
•Net pre-tax charges of $56 million, or $0.06 per share, for the quarter and $155 million, or $0.17 per share, for the nine months, primarily related to restructuring charges associated with the Company's internal effort to modernize ways of working (Accelerating the Organization)
Previous wording
Excluding the above items, results for the quarter and six months ended June 30, 2026 were primarily driven by higher sales-driven Franchised margins and higher Other operating income, partly offset by higher Selling, general and administrative expenses.
Current wording
Excluding the above items, results for the quarter and nine months ended September 30, 2026 were primarily driven by higher Other operating income and higher sales-driven Franchised margins. Results for the nine months were partly offset by higher Selling, general and administrative expenses.
Previous wording
During the quarter, the Company paid a dividend of $1.86 per share, or $1.3 billion, resulting in total dividends paid for the six months of $2.6 billion. Additionally, during the quarter, the Company repurchased 3.0 million shares of stock for $858 million, resulting in total purchases for the six months of 4.2 million shares, or $1.3 billion.
Current wording
During the quarter, the Company paid a dividend of $1.86 per share, or $1.3 billion, resulting in total dividends paid for the nine months of $4.0 billion. Additionally, during the quarter, the Company repurchased 1.9 million shares of stock for $519 million, resulting in total purchases for the nine months of 6.2 million shares, or $1.8 billion. In September 2026, the Company declared a 4% increase in its quarterly cash dividend to $1.93 per share, payable on December 15, 2026.
Previous wording
•Total Franchised revenues and Company-owned and operated sales increased 4% (2% in constant currencies) for the quarter and increased 6% (3% in constant currencies) for the six months. Both periods benefited from positive franchised sales performance across all segments. The International Operated Markets and the International Developmental Licensed Markets also benefited from the positive impact of foreign currency translation and positive Company-owned and operated sales performance for both periods.
Current wording
•Total Franchised revenues and Company-owned and operated sales increased 1% (1% in constant currencies) for the quarter and increased 4% (2% in constant currencies) for the nine months. Both periods benefited from positive franchised sales performance across all segments and positive Company-owned and operated sales performance at the International Developmental Licensed Markets. The International Operated Markets and the International Developmental Licensed Markets also benefited from the positive impact of foreign currency translation for the nine months.
Previous wording
The following table presents the percent change in comparable sales for the quarters and six months ended June 30, 2026 and 2025:
Current wording
The following table presents the percent change in comparable sales for the quarters and nine months ended September 30, 2026 and 2025:
Previous wording
The following table presents the percent change in Systemwide sales for the quarter and six months ended June 30, 2026:
Current wording
The following table presents the percent change in Systemwide sales for the quarter and nine months ended September 30, 2026:
Previous wording
Franchised sales are not recorded as revenues by the Company, but are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The following table presents franchised sales and the related increases/(decreases) for the quarters and six months ended June 30, 2026 and 2025:
Current wording
Franchised sales are not recorded as revenues by the Company, but are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The following table presents franchised sales and the related increases/(decreases) for the quarters and nine months ended September 30, 2026 and 2025:
Previous wording
•Franchised margins for both periods reflected sales-driven growth across all segments and the positive impact of foreign currency translation in the International Operated Markets and the International Developmental Licensed Markets. Franchised margins represented approximately 90% of restaurant margin dollars.
Current wording
•Franchised margins for both periods benefited from positive franchised sales performance across all segments. The nine months also benefited from the positive impact of foreign currency translation in the International Operated Markets and the International Developmental Licensed Markets. Franchised margins represented approximately 90% of restaurant margin dollars.
Previous wording
•Company-owned and operated margins for both periods in the U.S. primarily reflected the impact of ongoing inflationary cost pressures. The International Operated Markets primarily reflected sales-driven growth and the positive impact of foreign currency translation, partly offset by the impact of ongoing inflationary cost pressures for both periods.
Current wording
•Company-owned and operated margins for both periods in the U.S. primarily reflected the impact of ongoing inflationary cost pressures. The International Operated Markets for the nine months benefited from the positive impact of foreign currency translation, partly offset by the impact of ongoing inflationary cost pressures.
Previous wording
•Total restaurant margins included depreciation and amortization expense of $454 million and $425 million for the quarters ended 2026 and 2025, respectively, and $909 million and $839 million for the six months ended 2026 and 2025, respectively.
Current wording
•Total 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 ended 2026 and 2025, respectively.
Previous wording
•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. Results for both periods primarily reflected higher employee costs, including incentive-based compensation, and costs related to the 2026 Worldwide Owner/Operator convention.
Current wording
•Selling, general and administrative expenses decreased $25 million, or 3% (3% in constant currencies) for the quarter and increased $168 million, or 8% (7% in constant currencies) for the nine months. The decrease in Selling, general & administrative expenses for the quarter primarily resulted from incremental spend on marketing initiatives in the prior year. Results for the nine months primarily reflected higher employee costs, including incentive-based compensation, and costs related to the 2026 Worldwide Owner/Operator convention.
Previous wording
•Selling, general and administrative expenses as a percent of Systemwide sales were 2.2% and 2.1% for the six months ended June 30, 2026 and 2025, respectively.
Current wording
•Selling, general and administrative expenses as a percent of Systemwide sales were 2.1% for both the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
•The increase in gains on sales of restaurant businesses for both periods reflected more sales of restaurants in the International Operated Markets.
Current wording
•The increase in gains on sales of restaurant businesses for both periods reflected more sales of restaurants in the U.S., with the nine months also reflecting more sales of restaurants in the International Operated Markets.
Previous wording
•The change in asset dispositions and other (income) expense, net for both periods primarily reflected higher gains on sale of excess properties and lower bad debt expense, partly offset by higher litigation settlements.
Current wording
•The change in asset dispositions and other (income) expense, net for both periods primarily reflected higher gains on sale of excess properties.
Previous wording
•Impairment and other charges (gains), net reflected net pre-tax charges of $52 million and $43 million for the quarters ended 2026 and 2025, respectively, and $99 million and $109 million for the six months ended 2026 and 2025, respectively, primarily related to restructuring charges associated with Accelerating the Organization.
Current wording
•Impairment and other charges (gains), net reflected net pre-tax charges primarily related to restructuring charges associated with Accelerating the Organization.
Previous wording
•Operating income increased $106 million, or 3% (2% in constant currencies), for the quarter and $411 million, or 7% (4% in constant currencies), for the six months. Results reflected net pre-tax charges of $52 million and $43 million for the quarters ended 2026 and 2025, respectively, and $99 million and $109 million for the six months ended 2026 and 2025, respectively, primarily related to restructuring charges associated with Accelerating the Organization.
Current wording
•Operating income increased $239 million, or 7% (7% in constant currencies), for the quarter and $650 million, or 7% (5% in constant currencies), for the nine months. Results reflected net pre-tax charges of $56 million and $39 million for the quarters ended 2026 and 2025, respectively, and $155 million and $148 million for the nine months ended 2026 and 2025, respectively, primarily related to restructuring charges associated with Accelerating the Organization.
Previous wording
•Excluding the current and prior year charges shown in the table above, operating income increased 4% (2% in constant currencies) for the quarter and 7% (3% in constant currencies) for the six months. Results for both periods primarily reflected higher sales-driven Franchised margins and higher other operating income across all segments, partly offset by higher Selling, general, and administrative expenses in the International Developmental Licensed Markets & Corporate.
Current wording
•Excluding the current and prior year charges shown in the table above, operating income increased 8% (8% in constant currencies) for the quarter and 7% (5% in constant currencies) for the nine months. Results for both periods primarily reflected higher sales-driven Franchised margins and higher Other operating income across all segments. Results for the nine months were partly offset by higher Selling, general, and administrative expenses in International Developmental Licensed Markets & Corporate.
Previous wording
The increase in non-GAAP operating margin was primarily due to higher other operating income, partly offset by higher Selling, general and administrative expenses.
Current wording
The increase in non-GAAP operating margin was primarily due to higher Other operating income.
Previous wording
•Interest expense increased 5% (4% in constant currencies) for the quarter and 6% (4% in constant currencies) for the six months. Results for both periods primarily reflected higher average interest rates and the impact of foreign currency translation.
Current wording
•Interest expense was flat (increased 1% in constant currencies) for the quarter and increased 4% (3% in constant currencies) for the nine months. Results for the nine months primarily reflected higher average interest rates and the impact of foreign currency translation.
Previous wording
•The effective income tax rate was 19.5% and 21.3% for the quarters ended 2026 and 2025, respectively, and 20.7% and 20.6% for the six months ended 2026 and 2025, respectively. The effective tax rate for the quarter ended June 30, 2026 reflected discrete income tax benefits related to restructuring initiatives.
Current wording
•The effective income tax rate was 22.0% and 22.8% for the quarters ended 2026 and 2025, respectively, and 21.2% and 21.4% for the nine months ended 2026 and 2025, respectively.
Previous wording
Cash provided by operations totaled $5.2 billion and exceeded capital expenditures by $3.7 billion for the six months ended June 30, 2026. Cash provided by operations increased compared to the six months ended June 30, 2025, primarily due to favorable working capital changes and improved operating results.
Current wording
Cash provided by operations totaled $8.3 billion and exceeded capital expenditures by $5.9 billion for the nine months ended September 30, 2026. Cash provided by operations increased compared to the nine months ended September 30, 2025, primarily due to improved operating results.
Previous wording
Cash used for investing activities totaled $1.6 billion for the six months ended June 30, 2026, and was flat compared to the six months ended June 30, 2025.
Current wording
Cash used for investing activities totaled $2.5 billion for the nine months ended September 30, 2026, a decrease compared to the nine months ended September 30, 2025, primarily due to higher proceeds from sales of restaurants.
Previous wording
Cash used for financing activities totaled $3.6 billion for the six months ended 2026, an increase of $1.5 billion compared to the six months ended June 30, 2025. The increase was primarily due to lower bond issuances in the current year.
Current wording
Cash used for financing activities totaled $5.4 billion for the nine months ended September 30, 2026, an increase of $1.5 billion compared to the nine months ended September 30, 2025. The increase was primarily due to lower bond issuances in the current year, partly offset by lower bond repayments.
Previous wording
Based on current conditions, the following is provided to assist in forecasting the Company's future results.
Current wording
Based on current conditions, the following is provided to assist in forecasting the Company's future results for 2026.
Previous wording
•The Company expects 2026 capital expenditures to be between $3.7 and $3.9 billion, with the majority directed towards new restaurant unit expansion across the U.S. and International Operated Markets. Globally, the Company expects to open approximately 2,600 restaurants in 2026, with about 750 restaurants opening in the U.S. and International Operated Markets, and developmental licensees and affiliates contributing capital towards more than 1,800 restaurant openings in their respective markets. The Company expects approximately 2,100 net restaurant additions in 2026, targeting 50,000 global units in 2028.
Current wording
•The Company expects 2026 capital expenditures to be about $3.7 billion, with the majority directed towards new restaurant unit expansion across the U.S. and International Operated Markets. Globally, the Company expects to open about 2,500 restaurants in 2026, with about 700 restaurants opening in the U.S. and International Operated Markets, and developmental licensees and affiliates contributing capital towards approximately 1,800 restaurant openings in their respective markets. The Company expects approximately 2,100 net restaurant additions in 2026.
Showing the first 40 of 57 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•The Company expects net restaurant unit expansion will contribute nearly 2.5% to 2027 Systemwide sales growth, in constant currencies, moderating to about 2% by the end of 2030.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The NEXT Strategy continues to reflect and advance the Company’s purpose, mission and values, and is comprised of four key pillars designed around one simple ambition: to be more customers’ first choice.