Interim report
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( Translation ) Consolidated Financial Results for the Six Months Ended June 30 , 2026 McDonald's Holdings Company ( Japan ) , Ltd. Company code number : Stock market : Representative : Contact : Schedule of dividends payment : Schedule of interim securities report submission : 2702 ( URL https://www.mcd-holdings.co.jp/en/ ) Tokyo Securities Exchange , Standard Thomas Ko Representative Director , President and CEO Shuko Yoshida FASF August 7 , 2026 Vice President , CIRO ( Chief Investor Relations Officer ) Phone : + 81-3-6911-6000 August 10 , 2026 Preparation of supplementary materials for interim financial results : Yes Interim results briefing : Yes ( For analysts ) 1. Consolidated operating results ( From January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated financial results June 30 , 2026 June 30 , 2025 ( Note ) Comprehensive income : ( In millions of yen , with fractional amounts discarded ) Net sales Operating income Ordinary income Net income attributable to owners of parent ( Millions of yen ) % ( Millions of yen ) % 204,058 0.4 30,200 203,314 1.2 26,222 15.2 10.4 ( Millions of yen ) 30,816 26,153 % 17.8 7.7 ( Millions of yen ) 19,657 % 16,796 17.0 12.8 Six months ended June 30 , 2026 : 19,643 million yen < 17.0 % > Six months ended June 30 , 2025 : 16,783 million yen < 12.8 % > June 30 , 2026 June 30 , 2025 Net income per share ( 2 ) Consolidated financial position ( Yen ) 147.84 126.33 Total assets ( Millions of yen ) 361,616 364,473 As of June 30 , 2026 As of December 31 , 2025 ( Note ) Owner's equity : As of June 30 , 2026 : 292,664 million yen . As of December 31 , 2025 : 280,467 million yen Net income per share , fully diluted ( Yen ) ( In millions of yen , with fractional amounts discarded ) Total net assets ( Millions of yen ) 292,664 280,467 Equity ratio % 80.9 77.0
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Dividends per share End of 1st quarter End of 2nd quarter End of 3rd quarter End of year Total (Yen) (Yen) (Yen) (Yen) (Yen) December 31, 2025 - 0.00 - 56.00 56.00 December 31, 2026 - 0.00 December 31, 2026 (Forecast) - 64.00 64.00 Net sales Operating income Ordinary income Net income attributable to owners of parent Net income per share (Millions of yen) % (Millions of yen) % (Millions of yen) % (Millions of yen) % (Yen) Annual 408,000 (2.1) 55,500 4.2 55,500 6.6 35,000 3.2 263.24 1. Changes caused by revision of accounting standards: None 2. Changes other than (3) - 1. above: None 3. Changes in accounting estimates: None 4. Restatements: None 1. Number of shares outstanding (including treasury stock) As of June 30, 2026: 132,960,000 shares As of December 31, 2025: 132,960,000 shares 2. Number of treasury stock As of June 30, 2026: 1,347 shares As of December 31, 2025: 1,231 shares 3. Average number of common shares outstanding As of June 30, 2026: 132,958,727 shares As of June 30, 2025: 132,958,820 shares 2. Dividends (Note) Changes to the dividend forecast from the most recently announced figures: None 3. Consolidated earnings forecasts for the year ending December 31, 2026 (From January 1, 2026 to December 31, 2026) (Note) Change to the earnings forecast from the most recently announced figures: Yes 4. Others (1) Changes in significant subsidiaries (Changes in scope of consolidation): None Newly consolidated: － Excluded: － (2) Application of accounting procedures specific to preparation of interim consolidated financial statements: Yes (3) Changes in accounting policies and accounting estimates (4) Number of shares outstanding (common stock) (Indication of interim review procedure implementation status) This interim earnings report is not subject to interim review procedures based upon the Financial Instruments and Exchange Act. (Forward - looking statements) The financial forecasts and estimates in this release are based on information available at the time of disclosure and certain assumptions judged to be reasonable by the Company. Actual results may differ materially from expectations due to various factors. The governing language of this interim earnings report is Japanese. An English translation hereof is provided for reference purpose only.
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1. Qualitative information on interim financial results ended June 30, 2026 (1) Qualitative information on consolidated operating results ----------------------------------------- 2 (2) Qualitative information on consolidated financial position ---------------------------------------- 5 (3) Qualitative information on consolidated earnings forecasts --------------------------------------- 6 2. Interim consolidated financial statements (1) Interim consolidated balance sheets ------------------------------------------------------------------ 7 (2) Interim consolidated statements of income and comprehensive income ------------------------ 9 (3) Interim consolidated statements of cash flows ------------------------------------------------------ 11 (4) Notes to interim consolidated financial statements ------------------------------------------------- 13 (Notes for assumption of going concern) ------------------------------------------------------------ 13 (Notes for significant changes in the amount of shareholders’ equity) --------------------------13 (Application of accounting procedures specific to preparation of interim consolidated financial statements) ------------------------------------------------------------------------------------ 13 (Segment information) ----------------------------------------------------------------------------------13 Contents - 1 -
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1. Qualitative information on interim financial results ended June 30, 2026 (1) Qualitative information on consolidated operating results In February 2025, McDonald’s Holdings Company (Japan) Ltd. and its subsidiary (the “Group” or “we”) announced its Medium-Term Management Plan (from 2025 to 2027) with the aim of sustainable growth, stronger profitability, and further enhancement of the corporate value of the Group. We will focus on and expand our community-rooted franchise business and aim for further growth to meet the increasingly diverse and growing expectations of our customers and continue to be the most beloved restaurant brand in Japan. Specifically, we will focus on the three strategic areas of “Menu & Value”, “Restaurant Portfolio & Digital” and “Sustainability & People” with the aim of continuous sales growth and stronger restaurant profitability and realize community-rooted and sustainable growth. Financial targets include an average annual growth rate of 4-6% for system-wide sales, 4-6% for average annual operating income, 13% for operating income ratio and 11% or more for ROE. During the first six months of 2026, we continued to listen to customer feedback and focused on enhancing QSC and overall convenience. At the same time, we continued to invest in marketing, restaurant development, and human resources, resulting in year-on-year growth in system-wide sales. same-store sales also rose for the 43rd consecutive quarter, from the fourth quarter of fiscal 2015 through the second quarter of fiscal 2026. With regard to profit, operating income rose year-on-year as a result of an increase in system- wide sales and efficient restaurant operations. In consideration of the consolidated financial results for the first six months and other factors, we have revised our full-year earnings forecast for the fiscal year ending December 31, 2026. Our actions based on the Medium-Term Management Plan are as follows: (1) Menu & Value In addition to offering appealing and delicious menu items that meet customer needs throughout all dayparts and the standard menu items unique to McDonald's, limited-time offers will be made available to help bring a sense of seasonality and fun to our customers for each of the four seasons here in Japan. We will also strengthen restaurant investment, offer high QSC, and implement marketing promotions to enhance customers’ restaurant experience that always offers Value (value beyond price). During the first six months of 2026, we implemented a price revision in February to keep delivering satisfactory restaurant experiences to our customers. At the same time, we launched the “Tokuninarudo” Campaign, offering successive discounts on popular menu items, along with renewal of select products to make them even more appealing. We also brought fun and joy to our customers with our annual limited-time seasonal menus and collaborative products spanning a wide range of genres. Starting in June, as an official sponsor and official restaurant of the FIFA World Cup, we created opportunities for people to enjoy the excitement of the 2026 FIFA World Cup even outside the stadium through food and experiences, based on the concept of Sharing Our Passion with Fans, delivering special experiences to our customers. These measures provided consumers with more opportunities to visit our restaurants, and we continued to serve many customers. We will continue to offer value menu items, exciting marketing promotions, and highly convenient services to deliver Value beyond Price to our customers. (2) Restaurant Portfolio & Digital We will continue to proactively develop new restaurants and close those facing challenges (e.g. limited capacity), so as to increase the number of restaurants that can deliver better restaurant experiences to our customers. Thus far, we have greatly improved customer convenience through Mobile Ordering, Delivery, and the introduction of Self-Order Kiosks, i.e., touch-panel order terminals. Through effective use of digital - 2 -
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Classification Previous year-end Newly opened Closed Classification change Current reporting periodIncrease Decrease Company-operated 705 11 (9) - (43) 664 Franchised 2,320 24 (13) 43 - 2,374 Total 3,025 35 (22) 43 (43) 3,038 technology, our restaurant staff can ensure more efficient restaurant operations and serve customers with greater hospitality. We will continue to advance planned remodeling (i.e., renovation) of existing restaurants to help accelerate the Fusion of Digital and People in all our restaurants, delivering improved restaurant experiences for our customers and employees. Over the three-year period starting in 2025, we aim to achieve a net increase of more than 100 restaurants and remodel more than 1,000 restaurants, whilst continuing to optimize our Restaurant Portfolio to improve sales and profitability per restaurant. During the first six months of 2026, 35 new restaurants were opened, 22 restaurants were closed, and 189 restaurants were remodeled. As indicated by the increase in system-wide sales, we have been making good progress in building the optimum restaurant portfolio. We are also making steady progress in our digital initiatives. Our digital membership base, including My McDonald’s Rewards, continues to grow, and our connection with customers is becoming even deeper with increased sales via digital channels. (3) Sustainability & People Our purpose is to “Feed and Foster Communities” and to that end, we will continue to engage in the four areas of Our Planet, Food Quality & Sourcing, Job, Inclusion & Empowerment, and Community Connection. During the first six months of 2026, we have made steady progress in promoting earth-friendly measures and expanded the areas of our corporate PPAs, which should bring us closer to the achievement of Net Zero Emissions by 2050. As part of our efforts to reduce virgin plastic, we have completed the roll-out of straw- less lids, which was promoted since last year. Furthermore, for straws that continue to be used for Kids and certain other menu items, we have completed the transition to straws made primarily from 100% biomass- derived materials. Nearly all of our restaurants have completed the switch to eco-friendly materials for our various types of takeout bags. In addition, we are working on balancing environmental impact reduction with cost optimization -- for example, by replacing air conditioners in our restaurants to reduce electricity consumption. Since its founding, McDonald's has embraced the philosophy of “People Business”, recognizing its employees, the foundation of its business, as its most valuable asset, and striving to create a workplace where everyone can thrive and work comfortably. In March 2026, we were selected as a "Nadeshiko Brand" by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange, a designation recognizing companies that excel in empowering women; the selection was based on our Inclusion initiatives that support diverse work styles of employees, including the expansion of flexible work systems to help them juggle parenting and career. In April, we also fully launched the exclusive spot work platform called "Kamubakk! (Come Back) Crew" for former McDonald's crew members. While McDonald's boasts approximately 220,000 active crew members, we also view our ongoing engagement with our approximately 3 million former crew members nationwide as critical human capital for our business, and we are committed to supporting flexible career paths that can adapt to changes in life stages. An engagement platform for everyone in the McDonald’s System including the crew nationwide is essential - 3 -
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(Unit: Million Yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Year-on-year change Amount % Amount % Amount % Sales by Company-operated restaurants 133,347 - 123,824 - (9,523) - Company-operated restaurants’ cost of sales 117,653 88.2% 108,474 87.6% (9,179) (0.6)% (Breakdown) Raw material 49,611 37.2% 47,163 38.1% (2,448) 0.9% Labor 34,642 26.0% 30,770 24.8% (3,872) (1.1)% Other 33,398 25.0% 30,540 24.7% (2,858) (0.4)% Revenue from franchised restaurants 69,966 - 80,233 - 10,267 - Franchised restaurants -occupancy expenses 43,152 61.7% 49,238 61.4% 6,085 (0.3)% Total net sales 203,314 - 204,058 - 744 - Total cost of sales 160,806 79.1% 157,712 77.3% (3,094) (1.8)% to fully understand the ever-changing needs of customers and deliver an even better restaurant experience. We will continue to provide growth opportunities to all crew and employees, promote work styles where everyone can play an active role and build an even more welcoming and approachable workplace. As a result of the above initiatives, same-store sales grew by 5.9% during the current interim consolidated accounting period of this year. System-wide sales were 464,322 million yen (a 34,535 million yen increase from the same period last year), revenue was 204,058 million yen (a 744 million yen increase from the same period last year), and operating income was 30,200 million yen (a 3,978 million yen increase from the same period last year), ordinary income was 30,816 million yen (a 4,663 million yen increase from the same period last year). Net income attributable to owners of the parent was 19,657 million yen (a 2,861 million yen increase from the same period last year). (*) 1. Same-store sales are the total sales of restaurants operating for 13 months or longer. 2. System-wide sales are the combined net sales of company-operated and franchised restaurants; the amount does not equal to net sales presented in the interim consolidated statements of income. 3. Operating results are not presented in relation to the segment information as the business of our Group is based solely on operations of hamburger restaurants. Sales and the cost-of-sales ratio for the second quarter are as follows. (Note) 1. Sales by Company-operated restaurants do not include sales by Franchised-operated restaurants. 2. Revenue from franchised restaurants is Royalty income, Rental income, Marketing revenue and Gain on Store Sales and etc. - 4 -
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(Unit: Million Yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Year-on-year change Amount % Amount % Amount % Selling, general & administrative expenses 16,285 8.0% 16,145 7.9% (139) (0.1)% (Breakdown) Advertising & selling 3,941 1.9% 3,373 1.7% (568) (0.3)% Other 12,343 6.1% 12,771 6.3% 428 0.2% Selling, general and administrative expenses for the second quarter are as follows. (2) Qualitative information on consolidated financial position 1) Analysis of financial position At the end of the first half of the fiscal year, current assets totaled 105,656 million yen, a 3,254 million yen decrease from the end of the previous fiscal year. This was primarily due to a 4,787 million yen decrease in Cash and deposits. Non-current assets totaled 255,960 million yen, a 398 million yen increase from the end of the previous fiscal year. This was mainly due to a 2,308 million yen increase in property and equipment and 1,765 million yen decrease in investments and other assets. Current liabilities were 62,524 million yen, a 14,817 million yen decrease from the end of the previous fiscal year. This was mainly due to a 8,167 million yen decrease in other and a 2,282 million yen decrease in accounts payable-other. Non-current liabilities totaled 6,427 million yen, a 235 million yen decrease from the end of the previous fiscal year. This was mainly due to a 188 million yen decrease in asset retirement obligations and a 62 million yen decrease in provision for directors’ retirement benefits. 2) Cash flow summary Cash and cash equivalent at the end of the first half of the fiscal year was 66,634 million yen, decrease 4,787 million yen from the end of the previous fiscal year. (Cash flow from operating activities) A total of 24,485 million yen was provided by operating activities. (Decrease of 5,465 million yen from the same period previous last year) This was primarily due to a pre-tax income of 30,104 million yen. (Cash flow from investing activities) A total of 21,744 million yen was provided in investing activities. (Decrease of 106 million yen from the same period previous last year) This was primarily due to purchases of property and equipment of 22,354 million yen. (Cash flow from financing activities) A total of 7,527 million yen was used in financing activities. (Increase of 925 million yen from the same period last year) This was primarily due to dividend payments of 7,445 million yen. - 5 -
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(3) Qualitative information on consolidated earnings forecasts For the full-year earnings forecast ending December 31, 2026, some revisions have been made to the earlier forecast announced on February 6, 2026. For more details, please refer to the "Notice Regarding Revision of Full-Year Consolidated Earnings Forecast for FY2026" that is being announced today. - 6 -
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Millions of yen December 31, 2025 June 30, 2026 (Assets) Current assets Cash and deposits 71,422 66,634 Accounts receivable - trade 26,012 23,940 Current portion of long-term deferred accounts receivable 175 2 Securities 2,000 5,000 Raw materials and supplies 1,511 1,168 Other 7,795 8,915 Allowance for doubtful accounts (6) (6) Total current assets 108,910 105,656 Non-current assets Property and equipment Buildings and structures, net 108,133 110,034 Machinery and equipment, net 16,965 16,158 Tools, furniture and fixtures, net 9,326 8,825 Land 29,087 30,111 Lease assets, net 128 64 Construction in progress 1,790 2,546 Total property and equipment 165,431 167,740 Intangible assets Goodwill 920 508 Software 9,514 9,782 Other 694 694 Total intangible assets 11,129 10,984 Investments and other assets Investment securities 20,020 15,025 Long-term loans receivable 9 9 Deferred tax assets 9,536 9,176 Lease and guarantee deposits 43,053 44,021 Other 7,658 10,278 Allowance for doubtful accounts (1,278) (1,275) Total investments and other assets 79,000 77,235 Total non-current assets 255,562 255,960 Total assets 364,473 361,616 2. Interim consolidated financial statements (1) Interim consolidated balance sheets - 7 -
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Millions of yen December 31, 2025 June 30, 2026 (Liabilities) Current liabilities Accounts payable-trade 748 16 Lease obligations 88 41 Accounts payable-other 25,848 23,565 Accrued expenses 8,288 6,857 Income taxes payable 12,143 10,637 Consumption taxes payable 3,313 2,370 Contract liabilities 6,750 7,824 Provision for bonuses 2,531 1,804 Provision for loss on disposal of inventories 10 12 Asset retirement obligations 57 - Other 17,560 9,393 Total current liabilities 77,341 62,524 Non-current liabilities Lease obligations 68 36 Provision for directors’ retirement benefits 62 - Liabilities for retirement benefits 973 918 Asset retirement obligations 5,093 4,905 Deferred tax liabilities 45 38 Deferred tax liabilities due to land revaluation 311 311 Other 108 216 Total non-current liabilities 6,663 6,427 Total liabilities 84,005 68,951 (Net assets) Shareholders’ equity Common stock 24,113 24,113 Capital surplus 42,124 42,124 Retained earnings 218,302 230,513 Treasury stock (3) (4) Total shareholders’ equity 284,536 296,747 Accumulated other comprehensive income Revaluation reserve for land (4,195) (4,195) Remeasurements of retirement benefits 127 113 Total accumulated other comprehensive income (4,068) (4,082) Total net assets 280,467 292,664 Total liabilities and net assets 364,473 361,616 - 8 -
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Millions of yen Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 203,314 204,058 Cost of sales 160,806 157,712 Gross profit 42,507 46,346 Selling, general and administrative expenses 16,285 16,145 Operating income 26,222 30,200 Non-operating income Interest income 131 164 Reversal of allowance for doubtful accounts 1 2 Compensation income 89 420 Insurance income 214 227 Other 455 217 Total non-operating income 891 1,032 Non-operating expenses Interest expenses 4 2 Loss on disposals of company-operated restaurants 819 343 Other 136 70 Total non-operating expenses 960 416 Ordinary income 26,153 30,816 Special income Gain on sales of non-current assets 89 - Total special income 89 - Special loss Loss on disposals of non-current assets 314 408 Impairment loss 157 291 Other - 12 Total special loss 471 712 Income before income taxes 25,771 30,104 Income taxes 8,975 10,447 Net income 16,796 19,657 Net income attributable to owners of parent 16,796 19,657 (2) Interim consolidated statements of income and comprehensive income Interim consolidated statements of income for the Six months ended June 30, 2025 and 2026 - 9 -
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Millions of yen Six months ended June 30, 2025 Six months ended June 30, 2026 Net income 16,796 19,657 Other comprehensive income Remeasurements of defined benefit plans (12) (13) Total accumulated other comprehensive loss (12) (13) Comprehensive income 16,783 19,643 Comprehensive income attributable to: Owners of parent 16,783 19,643 Interim consolidated statements of comprehensive income For the six months ended June 30, 2025 and 2026 - 10 -
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Millions of yen Six months ended June 30, 2025 Six months ended June 30, 2026 Net cash provided by operating activities Income before income taxes 25,771 30,104 Depreciation and amortization 9,179 9,591 Impairment loss 157 291 Increase (decrease) in allowance for doubtful accounts (7) (2) Increase (decrease) in other provisions (1,075) (786) Increase (decrease) in pension liabilities (42) (55) Interest income (131) (164) Interest expenses 4 2 Gain on sales of non-current assets (89) - Loss on disposals of non-current assets 386 307 Decrease (increase) in accounts receivable - trade 1,870 2,071 Decrease (increase) in raw materials and supplies 382 343 Increase in goodwill from acquisition of franchised restaurants (132) - Increase in Long-term deferred accounts receivable 2,806 166 Decrease (increase) in other assets (63) (1,611) Increase (decrease) in accounts payable-trade (307) (731) Increase (decrease) in accounts payable-other (1,843) (2,432) Increase (decrease) in accrued expenses (1,123) (1,430) Increase (decrease) in other liabilities 478 443 Other, net 285 243 Subtotal 36,506 36,350 Interest income received 101 104 Interest expenses paid (4) (2) Income taxes paid (7,411) (12,314) Income taxes refunded 759 347 Net cash provided by operating activities 29,950 24,485 (3) Interim consolidated statements of cash flows For the six months ended June 30, 2025 and 2026 - 11 -
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Millions of yen Six months ended June 30, 2025 Six months ended June 30, 2026 Net cash used in investing activities Purchase of investment securities (968) - Proceeds from redemption of investment securities - 2,000 Purchases of property and equipment (21,024) (22,354) Proceeds from sales of property and equipment 2,708 3,355 Payments for lease and guarantee deposits (1,562) (1,714) Refunds of lease and guarantee deposits 697 695 Purchases of software (1,566) (1,704) Payments for assets retirement obligations (143) (403) Other, net 8 (1,619) Net cash used in investing activities (21,851) (21,744) Net cash used in financing activities Repayments of lease obligations (87) (81) Repurchase of treasury stock (0) (0) Dividends paid (6,514) (7,445) Net cash used in financing activities (6,602) (7,527) Effect of exchange rate changes on cash and cash equivalents (0) 0 Net increase in cash and cash equivalents 1,496 (4,787) Cash and cash equivalents at beginning of period 67,327 71,422 Cash and cash equivalents at end of period 68,823 66,634 - 12 -
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(4) Notes to interim consolidated financial statements (Notes for assumption of going concern) None (Notes for significant changes in the amount of shareholders’ equity) None (Application of accounting procedures specific to preparation of interim consolidated financial statements) Income taxes: Income taxes are determined based on an effective tax rate, multiplied by the estimated annual pre-tax income. Income tax adjustments are included in income taxes. (Segment information) Business segment of the Group is only hamburger restaurant operation therefore business segment information is omitted. - 13 -