The Company plans to open approximately 2,200 new restaurants (gross) globally in 2025, contributing to slightly over 4% net new unit growth. This aggressive development pace aims to reach 50,000 restaurants by the end of 2027, marking the fastest period of unit growth in Company history.

McDonald's is targeting 250 million 90-day active loyalty users and $45.0 billion in annual Systemwide sales from loyalty members by the end of 2027. The Company also expects to increase the percentage of Systemwide delivery sales originating from its mobile app to 30% by the end of 2027, leveraging its extensive drive-thru network.

The 'Accelerating the Arches' strategy includes a commitment to evolving core menu items, with 'Best Burger' operational and formulation changes planned for nearly all markets by the end of 2026. The Company is also aggressively growing its chicken brands, with plans to offer the McCrispy sandwich in nearly all major markets by the end of 2025.

The 'Accelerating the Organization' initiative, designed to modernize ways of working and drive efficiency, incurred $109 million in restructuring charges for the six months ended June 30, 2025. The Company expects to incur approximately $300 million more in restructuring charges in 2025, with total charges since 2023 reaching $580 million.

The Company's capital allocation philosophy prioritizes investments in business growth opportunities, including capital expenditures, technology, digital, and GBS organization. It also emphasizes consistent dividend payments and share repurchases with remaining free cash flow, signaling a balanced approach to value creation.

Management reviews and analyzes business results excluding the effects of foreign currency translation, impairment, and other strategic charges and gains, as well as material regulatory and other income tax impacts. This approach aims to provide a clearer representation of underlying business trends for incentive compensation and performance evaluation.

The war in the Middle East has negatively impacted Systemwide sales and revenue, particularly in the International Developmental Licensed Markets. Management expects this situation to continue affecting results until the conflict concludes and macroeconomic conditions recover, highlighting the ongoing vulnerability to global events.

The Company and its franchisees continue to face challenges in attracting, recruiting, developing, motivating, and retaining qualified employees in an intensely competitive labor market. Increased costs due to competition and evolving labor laws and regulations are impacting operational efficiency and profitability.

Dependence on a reliable supply chain exposes the Company to risks from interruptions and price increases due to factors like inflationary pressures, transportation issues, and natural disasters. Volatility in commodity prices, particularly for beef and chicken, could adversely affect operating results and restaurant profitability.

Global comparable sales increased 3.8% for the quarter and 1.4% for the six months ended June 30, 2025. This indicates the Company's ability to grow sales despite intense competition in the 'informal eating out' (IEO) segment, which includes traditional, fast casual, and non-traditional competitors.

With approximately 95% of McDonald's restaurants worldwide being franchised, the Company benefits from a business model designed to generate stable and predictable revenue. This structure relies on franchisee sales, providing a resilient foundation amidst market fluctuations.

McDonald's maintains a competitive advantage through its extensive global footprint, including over 28,000 drive-thru locations. Ongoing investments in digital tools, loyalty programs, and mobile ordering are designed to enhance customer experience and solidify its leadership position in the quick-service category.

The Company incurred $109 million in pre-tax restructuring charges for the six months ended June 30, 2025, as part of its 'Accelerating the Organization' initiative. These charges are related to efforts to modernize ways of working and drive efficiency across the organization, with an anticipated completion by 2027.

Company-owned and operated restaurant margins for both the quarter and six months ended June 30, 2025, reflected the impact of ongoing inflationary cost pressures, particularly in the U.S. This indicates a challenge in fully offsetting rising input costs through pricing or other efficiencies in directly operated restaurants.

McDonald's is undergoing a multi-year, comprehensive transformation of its technology and operating model to modernize processes and create efficiencies. This includes implementing new systems and centralizing/outsourcing certain functions, which is expected to enhance the quality of internal controls and operational performance.

The 'Double Down on the 4D's' strategy emphasizes digital transformation, with plans to increase 90-day active loyalty users to 250 million and grow annual Systemwide sales from loyalty members to $45.0 billion by 2027. This highlights a strong commitment to leveraging technology for customer engagement.

The Company is building an 'easiest and most efficient restaurant operating platform' and intends to deploy new, universal cloud-based software across all McDonald's restaurants. This initiative aims to accelerate innovation rollout, reduce complexity, and ensure a consistent customer experience globally.

Innovation efforts are focused on evolving iconic products, exemplified by the 'Best Burger' initiative with operational and formulation changes planned for nearly all markets by the end of 2026. This demonstrates a strategic approach to product development responsive to evolving customer tastes.

Capital expenditures for the six months ended June 30, 2025, increased to $1,295 million from $1,174 million in the prior year period. For the full year 2025, the Company expects capital expenditures between $3.0 billion and $3.2 billion, primarily directed towards new restaurant unit expansion across the U.S. and International Operated Markets.

The Company repurchased 1.7 million shares for $506 million during the quarter, bringing total repurchases for the six months to 3.2 million shares for $953 million. This ongoing activity under the $15.0 billion authorization effective January 1, 2025, reflects management's confidence in the Company's valuation and future cash flows.

The Company declared dividends of $1.77 per share for the quarter, totaling $1.3 billion, and $3.54 per share for the six months, totaling $2.5 billion. This consistent dividend policy is a key component of the Company's capital allocation strategy, prioritizing returns to shareholders.

The Company's five core values—Serve, Inclusion, Integrity, Community, and Family—underpin its strategy, prioritizing its role and commitment to the communities it operates in. This framework guides its approach to social responsibility and engagement with franchisees, suppliers, and employees.

McDonald's is actively working to manage risks and costs related to climate change, greenhouse gases, and diminishing energy and water resources. The Company has announced initiatives concerning climate action, sustainability, and responsible sourcing, indicating a focus on environmental stewardship.

The Company faces increased scrutiny from stakeholders regarding its progress on environmental and social impact initiatives, as well as pressure for expanded disclosure. This suggests a growing demand for transparency and accountability in its ESG practices.

The ongoing war in the Middle East has negatively impacted Systemwide sales and revenue, particularly in International Developmental Licensed Markets. The Company expects this adverse impact to persist until the conflict concludes and macroeconomic conditions recover, highlighting sensitivity to global instability.

Operating results are substantially affected by economic conditions, including inflationary pressures, which impact consumer disposable income and spending habits. This is particularly evident in the Company-owned and operated margins, which reflected the impact of ongoing inflationary cost pressures.

The Company faces increasing regulatory and legal complexity worldwide, particularly concerning income taxes, privacy, and data protection. New U.S. tax legislation (Public Law 119-21) enacted in July 2025 adds to this complexity, requiring ongoing assessment of its impact on financial statements.