McDonald's Holdings Company (Japan), Ltd. (TSE: 2702) — the operator and franchisor of Japan's largest fast-food chain — reported consolidated results for the first quarter of its December-ending fiscal year (January 1 to March 31, 2026) under Japanese GAAP. Revenue rose 2.7% year-on-year to ¥103,968 million, but profitability advanced far faster: operating profit jumped 39.3% to ¥16,640 million from ¥11,947 million, ordinary profit climbed 43.5% to ¥17,004 million, and net profit attributable to owners of the parent surged 44.4% to ¥11,003 million from ¥7,621 million. Basic EPS rose to ¥82.76 from ¥57.32, and comprehensive income increased 44.4% to ¥10,997 million.
Profit growth far outpaces sales
The standout feature of the quarter is the gap between modest top-line growth and a sharp expansion in profit. With revenue up just 2.7% but operating profit up 39.3%, McDonald's Japan demonstrated significant operating leverage in the opening quarter, lifting the operating margin well above the prior-year level. Ordinary profit grew even faster than operating profit, rising 43.5% to ¥17,004 million, which points to a favorable non-operating contribution alongside the core trading improvement.
Solid balance sheet
The company closed the quarter with total assets of ¥351,375 million and net assets of ¥284,019 million, leaving a robust equity ratio of 80.8% — a conservatively financed balance sheet that gives the chain ample headroom for restaurant investment and shareholder returns. The strong capital position is consistent with the group's long-running practice of paying a stable annual dividend; the prior-year (FY2025) annual dividend was ¥64.00 per share. This first-quarter report did not revise the dividend or full-year guidance.
Full-year guidance left unchanged
Despite the strong start, management held its full-year FY12/2026 guidance steady. The company continues to target revenue of ¥405,500 million (-2.7%), operating profit of ¥54,500 million (+2.3%), ordinary profit of ¥54,500 million (+4.7%), and net profit attributable to owners of ¥34,500 million (+1.7%), with EPS of ¥259.48. The guidance is notable for pairing a slightly lower full-year revenue figure year-on-year with modestly higher profit measures — a profile that implies further margin gains across the year as a whole.
First quarter front-loads the year's profit
The ¥11.0 billion of net profit booked in the first quarter already represents roughly 32% of the full-year net guidance of ¥34.5 billion. With the quarter's profit growth running so far ahead of the unchanged annual targets, the figures imply a markedly more modest pace of year-on-year profit growth over the remaining three quarters. Management's decision to leave guidance intact, rather than raise it after such a strong opening, signals a cautious stance on the balance of the year even as the early momentum looks favorable.
| Metric | Q1 FY12/2026 | Q1 FY12/2025 | YoY |
|---|---|---|---|
| Revenue (¥M) | 103,968 | 101,217 | +2.7% |
| Operating profit (¥M) | 16,640 | 11,947 | +39.3% |
| Ordinary profit (¥M) | 17,004 | 11,848 | +43.5% |
| Net profit attrib. (¥M) | 11,003 | 7,621 | +44.4% |
| EPS (¥) | 82.76 | 57.32 | +44.4% |
| FY26 net profit guidance (¥M) | 34,500 | — | +1.7% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.