McDonald's

McDonald’s moat is multi‑layered: (1) Intangible assets/brand: among the world’s most valuable consumer brands, reinforced by consistent marketing and iconic equities (Big Mac, McNuggets) and now scaled loyalty.

Score 95. (2) Cost advantages: unmatched procurement, supply chain, marketing scale, and a franchising model that turns systemwide volume into high‑margin rent and royalty streams.

Score 90. (3) Efficient scale and real estate: a pervasive drive‑thru network with prime sites and long‑dated leases, often with landlord economics that deter direct competition at the best corners. Score 90. (4) Switching costs: historically low at the consumer level, but rising as loyalty and personalized offers capture frequency and data.

Score 75. (5) Network effects: indirect network benefits through brand, delivery marketplaces, and data flywheel, but weaker than pure platforms. Score 60. Weighted across importance (brand 35%, cost 30%, efficient scale 20%, switching 10%, network 5%), we derive a ~92 moat score.

Risks to durability include regulatory actions on wages or franchising, shifts in health preferences, geopolitical boycotts, and digital intermediaries.

The NLRB’s broader joint‑employer rule was vacated in 2024, reducing a key structural risk, though appeals remain possible; California’s fast‑food wage floor raises unit‑level pressure but corporate rent/royalty streams historically adapt through pricing and productivity.