McDonald's Corporation

- No explicit mention of current or planned new fundraising through debt or equity was made in the call transcript on page 6. - Christopher Kempczinski noted the system has a "tremendous amount of financial firepower" despite some cash flow pressures for franchisees. - He expressed no concerns about the company's ability to invest in new restaurants when it makes sense, emphasizing "plenty of capital to spend" if good opportunities arise. - McDonald's focus is on generating strong returns from investments rather than immediate capital raises. - Overall, financial flexibility and capacity to deploy capital for growth exist without indicating a need for new debt or equity fundraising at this time.

- McDonald's is entering a significant remodel cycle, about a decade after the original Experience of the Future (EOTF) program. - The remodel cycle aims to refresh restaurants and adapt to shifts like digital growth and delivery changes, improving customer experience. - Franchisees will primarily fund remodels but McDonald's may partner on sales-driving elements of the investment if it makes financial sense. - Cost and supply chain factors, including inflation and rising build costs, are being carefully considered to ensure strong returns for franchisees. - McDonald's is re-evaluating its development pipeline due to increased costs and supply chain issues; only projects meeting strong return thresholds will proceed. - The company maintains confidence in growth and plans to expand to 50,000 restaurants by 2027, focusing on disciplined investments. - Ample financial capital exists to support new restaurant openings when opportunities are attractive.

- McDonald's expects continued momentum in gaining market share through the balance of the year, particularly in major markets during May and June. - Global comparable sales growth was 3.8% in Q1, with all major segments contributing; Q2 sales are expected to decelerate due to a difficult April comparison but accelerate on a 2-year stack. - The company projects global system-wide sales growth of about 6% in constant currency for 2026. - The launch of new beverage platforms and ongoing value programs like McValue 2.0 are expected to drive traffic and sales. - Growth in the chicken category (a focus area) is outpacing beef, presenting an opportunity for increased volumes and market share. - Development plans remain on track for approximately 1,000 new restaurants in China in 2026, with a goal of 50,000 total restaurants globally by 2027, supporting long-term sales volume growth. - Despite challenging macroeconomic conditions, management is confident in their positioning and ability to control key drivers impacting sales growth.

- Management reaffirmed the goal to reach 50,000 restaurants globally by the end of 2027, focusing on development only when strong returns can be achieved. - Adjusted earnings per share (EPS) for the quarter was $2.83, a 1% increase on a constant currency basis, including a $0.13 benefit from foreign currency translation. - Foreign currency is expected to provide a full-year 2026 tailwind to EPS in the range of $0.20 to $0.30 based on current rates. - Company expects continued margin pressure, especially in U.S. company-operated restaurants, which are under active operational reassessment. - Franchisee profitability faces inflationary pressures but remained stable in 2025, with ongoing focus on supporting franchisee cash flow growth. - Cost pressures from commodities and energy are expected but considered manageable through supply chain strength and price strategies. - Management is confident in continuing momentum and share growth, particularly with value and menu innovations driving top-line growth, supporting earnings sustainability.

- The company reaffirmed its long-term target of reaching **50,000 restaurants globally by the end of 2027**. - Development pacing will be **subject to return thresholds** to ensure good returns for franchisees and the system. - No significant shifts expected in the mix of new restaurant openings; **International Developmental Licensed (IDL) markets already make up the majority** of openings. - China alone is on track to open approximately **1,000 new restaurants in 2026**. - Management emphasized that despite some cash flow pressures for franchisees, there is **ample financial firepower to invest in new restaurants** when opportunities arise. - Any decisions on refranchising or company-operated store adjustments will be made to **maximize system value** and may impact development pace. - Overall, the development pipeline remains robust but is carefully managed to ensure strong returns and sharp operational execution.