MCD changes
Pick any two versions below to diff them.
- Balance sheet
- McDonald's shows negative shareholders' equity: a deficit of $1.0 billion at June 30, 2026. Over many years, it has used cash flow and debt to buy back $80.5 billion of its own stock (treasury stock at cost). This is not a sign of distress. The company owns much of the land and buildings that franchisees rent, and it carries this property at old cost. Rent and royalties give a steady cash flow. Debt was $39.9 billion at June 30, 2026, mostly unsecured notes of the parent, plus $14.0 billion of long-term lease liabilities. At December 31, 2025, 97% of the debt had a fixed rate, the average rate was 4.0%, and 39% was in foreign currencies. Net debt of about $39.1 billion was about 2.6 times EBITDA of about $15.1 billion over the 12 months to June 2026. In the first half of 2026, operating income of $6.29 billion covered interest expense of $809 million about 7.8 times. Liquidity comes from cash of $822 million, a $5.0 billion commercial paper program and an unused $4.0 billion committed credit line to June 2028. About $3.2 billion of debt matures in 2027 and $5.2 billion in 2028. S&P rates the long-term debt BBB+ and Moody's rates it Baa1 (10-K, February 2026). In 2025, dividends of $5.1 billion and buybacks of $2.1 billion used almost all of the $7.2 billion of free cash flow. In September 2026, McDonald's set a plan to give franchisees about $8.5 billion of rent relief and capital support through 2036. This leaves less cash for buybacks, unless debt rises. As of 2026-06-30.
- Checkpoints
- Nov 4, 2026 (estimate): Q3 2026 results: US guest counts and same-store sales. Pending. Watch: US same-store sales near zero or better, with guest counts that stop falling in October, pass; a further fall in US traffic or a cut to the outlook fails. Feb 2027 (estimate): Full-year 2026 results and 2027 outlook. Pending. Watch: A 2027 outlook with positive US guest counts and free cash flow conversion in the mid-80% range passes; lower guidance or higher debt to fund the franchisee plan fails. May 2027 (estimate): Q1 2027 results: value menu and franchisee profit. Pending. Watch: Positive US guest counts with stable franchisee cash flow pass; traffic that still falls after the Extra Value Meals push fails.