McDonald's Holdings Company (Japan), Ltd.
2702・Standard Market・Retail Trade
Hamburger restaurant business (single segment)
Single-segment hamburger restaurant business operating company-operated and franchise stores nationwide in Japan
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Q1 cumulative) | ¥103,968 million | ¥101,217 million | ↑ |
| Operating profit (Q1 cumulative) | ¥16,640 million | ¥11,947 million | ↑ |
| Operating profit margin (Q1 cumulative) | 16.0% | 11.8% | ↑ |
| Ordinary profit (Q1 cumulative) | ¥17,004 million | ¥11,848 million | ↑ |
| Quarterly net profit attributable to owners of parent | ¥11,003 million | ¥7,621 million | ↑ |
| Quarterly net profit per share | ¥82.76 | ¥57.32 | ↑ |
| Same-store sales growth rate (Q1) | +7.3% | - | ↑ |
| Total number of stores (end of Q1) | 3,031 stores | 3,025 stores | ↑ |
| Company-operated store cost of sales ratio | 86.6% | 88.5% | ↓ |
| Franchise revenue cost ratio | 60.1% | 63.9% | ↓ |
| Cost of sales ratio (total) | 76.3% | 80.0% | ↓ |
| Equity ratio | 80.8% | 77.0% | ↑ |
| Full-year revenue forecast | ¥405,500 million | ¥416,602 million | ↓ |
| Full-year operating profit forecast | ¥54,500 million | ¥53,257 million | ↑ |
| Annual dividend forecast | ¥64.00 | ¥56.00 | ↑ |
Business Details
Through McDonald's Company (Japan), Ltd., the company operates hamburger restaurants nationwide via both company-operated and franchise formats. Revenue consists of company-operated store sales and franchise revenue. The company conducts business under a license from McDonald's Corporation (USA), with royalty income from sublicensing to franchisees serving as a key pillar of earnings. As of the end of Q1 of the fiscal year ending December 2026, the company operated a total of 3,031 stores (678 company-operated, 2,353 franchised).
Recent Overview
Q1 of the fiscal year ending December 2026 saw significant profit growth, with revenue up 2.7% and operating profit up 39.3%
In Q1 of the fiscal year ending December 2026 (January to March 2026), revenue was ¥103,968 million (up 2.7% year on year) and operating profit was ¥16,640 million (up 39.3% year on year), representing a significant increase in profit. Same-store sales grew 7.3%, marking 42 consecutive quarters of growth. Franchise revenue expanded to ¥40,354 million (up ¥5,264 million year on year), improving the earnings structure. Price revisions and partial menu renewals were implemented on February 25, 2026. Limited-time and collaboration products such as the 'Teri-Tama Family' and 'Dragon Quest Burger' were rolled out, along with the 'Toku ni Narudo' campaign. The company opened 21 new stores, closed 15, and remodeled 39, bringing the total number of stores at period-end to 3,031. The full-year earnings forecast remains unchanged (revenue of ¥405,500 million, operating profit of ¥54,500 million).
Key Products
Growth Drivers
- Expansion of the revenue base through sustained growth in same-store sales (up 7.3%, marking 42 consecutive quarters of growth)
- Increase in franchise revenue (¥40,354 million, up ¥5,264 million year on year) driven by accelerated franchise conversion, together with a substantial improvement in the franchise revenue cost ratio (from 63.9% to 60.1%)
- Improvement in per-store profitability through store portfolio optimization (targeting a net increase of over 100 stores over three years)
- Strengthened customer engagement and repeat visits through expanded point-earning channels for 'My McDonald's Rewards'
- Improvement in the company-operated cost of sales ratio and SG&A ratio (from 8.2% to 7.7%) through more efficient store operations and optimized advertising expenditure
- Initiatives aimed at achieving the targets set out in the medium-term management plan (FY2025-FY2027), including 4-6% average annual systemwide sales growth, a 13% operating profit margin, and ROE of 11% or higher
Risks
- Structural decline in consolidated revenue due to accelerated conversion of company-operated stores to franchises (full-year FY2026 forecast: revenue of ¥405,500 million, down 2.7% year on year)
- Continued upward trend in store operating costs, primarily materials costs, posing a risk to profitability (cost of materials ratio of 37.7%)
- Prolonged rise in raw material prices, labor costs, real estate rent, logistics costs, and energy costs, together with continued foreign exchange volatility
- Risk of slowing same-store sales growth due to customer traffic trends following price revisions and changes in competitors' pricing strategies
- Risk of the franchise revenue cost ratio rising again due to increased advertising expenses and franchise support costs, despite recent improvement
Last updated: March 19, 2026