McDonald’s second quarter results landed in line with Wall Street’s revenue expectations, with earnings slightly above consensus. Management attributed the quarter’s muted U.S. performance to inconsistent execution of value menus and operational complexity at the restaurant level. CEO Chris Kempczinski stated, “We simply didn’t execute at the level we needed to in the second quarter,” highlighting that U.S. restaurant teams struggled with too many simultaneous deployments and underwhelming marketing programs. Internationally, menu innovation and value offerings in countries like Germany, Australia, and the U.K. helped support steady growth, even as the broader consumer environment remained challenging.
Is now the time to buy MCD? Find out in our full research report (it’s free for active Edge members).
McDonald's (MCD) Q2 CY2026 Highlights:
- Revenue: $7.1 billion vs analyst estimates of $7.13 billion (3.8% year-on-year growth, in line)
- Adjusted EPS: $3.38 vs analyst estimates of $3.32 (1.8% beat)
- Operating Margin: 47%, in line with the same quarter last year
- Locations: 46,028 at quarter end, up from 44,113 in the same quarter last year
- Same-Store Sales rose 1.3% year on year (3.8% in the same quarter last year)
- Market Capitalization: $193.7 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From McDonald's’s Q2 Earnings Call
- Dave Palmer (Evercore): Asked about the near- and medium-term opportunities for improving U.S. value perception. CEO Chris Kempczinski detailed recent pricing and menu changes, acknowledging execution missteps and emphasizing upcoming alignment with franchisees.
- Dennis Geiger (UBS): Questioned the pace of operational and marketing fixes in the U.S. Kempczinski said operational improvements should be quick, but marketing enhancements will take longer, with full impact expected by 2027.
- Brian Harbour (Morgan Stanley): Inquired about franchisee participation in value programs. Kempczinski cited the flexible EDAP menu structure as a challenge, noting ongoing education and business reviews to drive better compliance.
- Sara Senatore (Bank of America): Asked if rapid expansion could affect same-store sales. CFO Ian Borden said growth pace was modestly adjusted due to inflation, but expects new openings and comps to remain balanced.
- Jon Tower (Citi): Probed operational overload from numerous launches. Kempczinski acknowledged too many initiatives in Q2 and outlined plans for a more focused deployment schedule.
Catalysts in Upcoming Quarters
Our analyst team will be watching (1) the pace and effectiveness of operational improvements in U.S. restaurants, (2) the impact of renewed digital and value marketing efforts on guest traffic and loyalty engagement, and (3) international market momentum from new menu launches and beverage platform expansion. Progress on franchisee alignment and the execution of McDonald’s > NEXT initiatives will also be key indicators of future performance.
McDonald's currently trades at $273.75, up from $265.23 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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