Aug 4, 2026 earnings call — U.S. execution and McDonald's > NEXT
McDonald's system-wide sales grew 4% in constant currency this quarter, while U.S. comparable sales were 0.8%.
Revenue $7.1B (est $7.1B) · EPS $3.38 (est $3.32)
Key quotes
"We don't have a strategy problem. We simply didn't execute at the level we needed to in the second quarter."
"In the U.S., sales are ahead of plan. Guest checks are higher, and we're seeing new occasions emerge throughout the day."
"On October 5, we'll officially launch a program to retrain the 2 million-plus restaurant crew, company employees and supplier partners who work under the Golden Arches on gold standard taste, quality and hospitality."
Analyst Q&A 7
US value fixes and issues
Q (David Palmer): He asked what near-term versus medium-term opportunities are in the U.S. to restore value and affordability.
A: Management said base menu pricing is back in line and the $5 Meal Deals and EVMs are performing well. They said the new 10 items for under $3 (EDAP) underperformed due to inconsistent execution and low awareness, and pulling digital offers made the outcome worse. Fixing this requires conversations with franchisees and will take time.
"So base menu pricing, we feel very good about where we are with that." — Christopher Kempczinski (CEO·CHAIR)
Timing to fix ops, marketing, value
Q (Dennis Geiger · UBS): He asked how quickly operations, marketing and value issues can be addressed and what that means for U.S. sales in coming quarters.
A: They said operations improvements should come fastest because those are within their control and involve cleaning up deployments and giving crew more support. Marketing changes cannot be materially changed in Q3 but adjustments can be made for Q4 and they expect to be fully back in 2027. Value fixes require franchisee alignment and meetings; they plan more discussions and will update by Investor Day.
"So I feel really good that we're going to be able to get after some of these operations opportunities by really just cleaning things up, giving our crew more support and having that laser-like focus on that." — Christopher Kempczinski (CEO·CHAIR)
Why some franchisees skipped EDAP
Q (Brian Harbour): He asked why about a third of franchisees did not participate in the EDAP program and how to ensure better alignment going forward.
A: Management said about 1/3 of the system did not execute the recommended pricing for EDAP, partly because the program allowed pricing flexibility and some operators raised prices. The impact was compounded by pulling digital offers and ending Buy One, Add One; they will educate franchisees and address pricing noncompliance in business reviews to fix alignment.
"So what we're talking about here is, call it, 1/3 of the system that did not execute against what we were guiding around in terms of our EDAP menu." — Christopher Kempczinski (CEO·CHAIR)
Customer satisfaction and underperforming stores
Q (John Ivankoe): He asked whether McDonald's agrees with the ACSI findings and whether underperforming company or franchise stores can be moved to better operators.
A: They said they track customer satisfaction closely and use data from actual restaurant visitors. They acknowledged a step back in Q2 and emphasized they are focused on elevating taste, quality and hospitality, and always try to put restaurants in the hands of the best operators; further details will come with McDonald's > NEXT.
"We have a survey that we do with our actual customers who are visiting our restaurants who then give us feedback on performance." — Christopher Kempczinski (CEO·CHAIR)
Growth pace and marketing approach
Q (Sara Senatore): She asked if faster restaurant expansion hurt comps or operations and whether the marketing process has changed.
A: They said they slightly adjusted the pace of new openings to protect returns given inflation and the tougher consumer backdrop, but don't expect a large comp benefit from that change. On marketing, they said the world has changed so they are evolving how they engage customers—focusing more on baseline growth, taste and quality, and using cultural moments sparingly.
"It's actually evolving to something different because the world is changing, and we need to change with it." — Christopher Kempczinski (CEO·CHAIR)
Franchisee ability to fund improvements
Q (David Tarantino · Baird): He asked about franchisee cash flow and how hard it will be to get them to invest in operations, value and experience improvements.
A: They said McDonald's > NEXT is not mainly a remodel program and many investments will align with the regular 10-year remodel cycle franchisees already follow. They noted productivity opportunities can self-fund some improvements, franchisee balance sheets still show borrowing capacity, and they are confident they can execute but will share more at Investor Day.
"So as we're doing that normal remodel cycle, we're also thinking about are there things that we can do on top of that, that can drive additional opportunities to grow sales and simplify operations." — Christopher Kempczinski (CEO·CHAIR)
New beverage platform results
Q (Lauren Silberman · Deutsche): She asked whether the new beverages are driving incremental sales, if beverage attachment is rising, and how much of sales came from energy drinks.
A: They said the beverage platform launched in several markets and results are in line or above expectations, with more than half of the traffic coming after lunch, indicating incrementality and a strong average check uplift (about 50% over full day average). Germany showed meaningful incremental guest count, comp sales and restaurant cash flow; more detail will be shared at Investor Day.
"More than half of the traffic is coming after lunch." — Ian Borden (CFO)