MCD · Q2 FY2026
MCDONALDS CORP Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $7.10B | $6.49B (yr ago) | Beat |
| EPS | $3.32 | $2.80 (yr ago) | Beat |
| Free Cash Flow | $1.98B (table; not meaningful for this analysis) | $1.06B (yr ago; not meaningful) | Beat |
| Gross Margin | Not disclosed | Not disclosed (yr ago) | Miss |
| Operating Margin | 47.0% pre-tax margin | 45.0% pre-tax margin (yr ago) | Beat |
What changed
Revenue increased 9.4% year over year to $7.10 billion, while EPS rose 18.6% to $3.32. The supplied pre-tax margin expanded 2.0 percentage points to 47.0%, but debt remained high at $39.86 billion and book equity was negative at $1.02 billion.
Impact on the investment thesis
With no prior SageNoodle fair value, we initiate a $271 base-case value rather than record a revision. The stronger quarter supports a modest premium to the current 20.6x trailing P/E, but leverage and negative equity keep the valuation and risk assessment measured.