McDonald's Corporation (MCD) Stock Analysis

McDonald’s enjoys several durable competitive advantages. Its global scale is unmatched, with over 44,000 restaurants in more than 100 countries—far exceeding Burger King (~19,000) and Wendy’s (~7,000). This scale enables superior purchasing power, supply chain efficiency, and brand recognition. The company’s heavily franchised model (95% of units) generates stable, high-margin revenue streams; franchised restaurant margins account for roughly 90% of total restaurant margin dollars, insulating McDonald’s from much of the operational volatility faced by company-owned models.

Brand strength is a core asset: McDonald’s consistently ranks among the world’s most valuable brands, and its marketing spend and digital engagement (e.g., loyalty programs with over 45 million U.S. active users) outpace rivals. The company’s focus on value and convenience—exemplified by its Extra Value Meals and industry-leading drive-thru network (28,000+ locations)—has proven resilient in economic downturns, attracting both cost-conscious and time-pressed consumers.

Operationally, McDonald’s invests heavily in technology and menu innovation, supporting consistent customer experience and cost control. Its real estate strategy—owning or controlling the land and buildings for most locations—provides long-term flexibility and bargaining power.

Risks include intensifying competition from both traditional QSRs (e.g., Burger King, Wendy’s) and fast-casual entrants, as well as consumer shifts toward health and sustainability. However, McDonald’s scale, brand equity, and operational discipline provide a formidable moat relative to peers.