McDonald’s Q1 2026 Earnings Beat but CEO Warns Spending Is Worsening

CNBC reported Thursday that McDonald’s delivered a first-quarter earnings beat while CEO Chris Kempczinski issued a cautious warning on McDonald’s consumer spending trends heading into the rest of 2026.

McDonald’s Tops Wall Street Forecasts

The fast-food giant posted adjusted earnings of $2.83 per share against an analyst consensus of $2.74. Net revenue climbed 9% year-over-year to $6.52 billion, edging past the $6.47 billion Wall Street had pencilled in. Net income reached $1.98 billion for the quarter, up from $1.87 billion in the same period last year. Global same-store sales rose 3.8%, essentially matching Street forecasts of 3.7%. U.S. same-store sales grew 3.9%, driven by diners spending more per visit rather than visiting more frequently.

CEO Flags a Challenging Consumer Environment

Despite the headline beat, Kempczinski struck a notably cautious tone on the earnings call. He described conditions as “certainly not improving” and possibly “getting a little bit worse.” He pointed specifically to elevated fuel costs stemming from the U.S.-Iran conflict as a compounding pressure. Kempczinski noted that higher gas prices disproportionately affect lower-income households, a key McDonald’s demographic. That pressure, he said, is expected to persist. Shares initially jumped more than 3% in premarket trading before paring most of those gains as the cautious commentary landed.

Also Read: Fed Holds Rates Steady Amid Tariff Uncertainty

Background: Sector-Wide Sales Softness in March

McDonald’s is not alone in flagging a consumer pullback. Rivals including Domino’s Pizza and Chipotle Mexican Grill have separately flagged softer sales in March, coinciding with the onset of the U.S.-Iran conflict. Against that backdrop, McDonald’s has leaned heavily on value-oriented promotions to capture share from competitors. It also pursued higher-margin marketing tie-ins, including meals linked to “The Super Mario Galaxy Movie” and “KPop Demon Hunters,” alongside its limited-time Big Arch premium burger launched in early March.

Also Read: Chipotle Reports Slowing Sales Amid Macro Pressure

Q2 Outlook and Franchise Strategy

CFO Ian Borden acknowledged the chain faces a tough second-quarter comparison, lapping the blockbuster Minecraft movie promotion from a year earlier. He expressed confidence that momentum built around value and affordability would carry through once that difficult April comparison cleared. Separately, McDonald’s is weighing a sale of its company-owned U.S. restaurants, which represent fewer than 5% of domestic locations, to franchisees after those sites posted weaker-than-expected margins. International markets also performed solidly, with France, Germany, Australia, and Japan among the standout regions.

Read Next: Domino’s Q1 2026 Earnings Reflect Cautious Consumer