Tis the season... Unfortunately, card theft is very common, particularly this time of year. I've had my card info stolen a couple times in the last few years. Glad you're filing a police report. They won't really be able to do much but they definitely need to know about the activity. Good catch by your bank.
Was that the Applewood McD's? I was there a week ago for a McRib. I'll be watching my online banking...