Story perspectives

McDonald’s Q1 Revenue Beats Forecasts as Margins Slip

5/7/2026

Summary

McDonald's Beats Forecast

McDonald’s posted Q1 revenue of $6.52 billion and earnings of $2.83 per share, both above analysts’ expectations.
Global comparable sales rose 3.8% and U.S. same-store sales grew 3.9%, below forecasts.
CEO Chris Kempczinski said rising gas prices are the main issue and will hit low-income consumers hardest.
CFO Ian Borden said margins fell 25% to $59 million and April sales turned negative, prompting a sub-$3 McValue rollout and a $4 breakfast deal.

Summary

McDonald's Weighs Sale

McDonald’s is weighing selling its U.S. company-owned restaurants, which are under 5% of locations.
On April 21 the chain launched an Under $3 Menu with ten items below three dollars.
The Big Arch burger, a 1,020-calorie two-patty item, debuted in March priced $7.50-$13.
Burger King posted a 5.8% rise in U.S. same-store sales, outpacing McDonald’s 3.9% growth.

History

Historical Context

In 1960 McDonald's earned $56 million, a boom fueled by suburban car culture and Ray Kroc’s 1961 purchase of the brothers’ stake. The chain opened its first overseas restaurant in Canada in 1967, and by 1992 its “What you want is what you get” slogan signaled a shift to low-price value, a tactic later adopted by rivals such as Burger King.

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McDonald's Beats Forecast

McDonald’s posted Q1 revenue of $6.52 billion and earnings of $2.83 per share, both above analysts’ expectations.
Global comparable sales rose 3.8% and U.S. same-store sales grew 3.9%, below forecasts.
CEO Chris Kempczinski said rising gas prices are the main issue and will hit low-income consumers hardest.
CFO Ian Borden said margins fell 25% to $59 million and April sales turned negative, prompting a sub-$3 McValue rollout and a $4 breakfast deal.

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