VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Wednesday, January 7, 2026

Stock Comparison

McDonald's Corporation vs Watsco, Inc.

Compare moat strength, market structure, and segment coverage to understand how each company defends its edge.

McDonald's Corporation

MCD · New York Stock Exchange

Market cap (USD)$214.3B
Gross margin (TTM)57.4%
Operating margin (TTM)46.1%
Net margin (TTM)32%
SectorConsumer
IndustryRestaurants
CountryUS
Data as of2025-12-30
Moat score
80/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into McDonald's Corporation's moat claims, evidence, and risks.

View MCD analysis

Watsco, Inc.

WSO · New York Stock Exchange

Market cap (USD)$14.4B
Gross margin (TTM)28.3%
Operating margin (TTM)10.2%
Net margin (TTM)7.4%
SectorIndustrials
IndustryIndustrial - Distribution
CountryUS
Data as of2026-01-05
Moat score
72/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Watsco, Inc.'s moat claims, evidence, and risks.

View WSO analysis

Comparison highlights

  • Moat score gap: McDonald's Corporation leads (80 / 100 vs 72 / 100 for Watsco, Inc.).
  • Segment focus: McDonald's Corporation has 3 segments (48.7% in International Operated Markets); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Moat breadth: McDonald's Corporation has 5 moat types across 2 domains; Watsco, Inc. has 4 across 3.

Primary market context

McDonald's Corporation

International Operated Markets

Market

Quick-service restaurants and informal eating out (IEO)

Geography

International operated markets (e.g., Australia, Canada, France, Germany, Italy, Poland, Spain, U.K.)

Customer

Consumers (end customers) and franchisees (B2B system partners)

Role

Franchisor / restaurant operator

Revenue share

48.7%

Watsco, Inc.

HVAC/R Distribution

Market

HVAC/R equipment, parts and supplies distribution

Geography

North America (U.S., Canada, Mexico, Puerto Rico; export to Latin America/Caribbean)

Customer

Licensed HVAC and refrigeration contractors (residential & commercial)

Role

Wholesale distributor

Revenue share

100%

Side-by-side metrics

McDonald's Corporation
Watsco, Inc.
Ticker / Exchange
MCD - New York Stock Exchange
WSO - New York Stock Exchange
Market cap (USD)
$214.3B
$14.4B
Gross margin (TTM)
57.4%
28.3%
Operating margin (TTM)
46.1%
10.2%
Net margin (TTM)
32%
7.4%
Sector
Consumer
Industrials
Industry
Restaurants
Industrial - Distribution
HQ country
US
US
Primary segment
International Operated Markets
HVAC/R Distribution
Market structure
Competitive
Competitive
Market share
n/a
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
80 / 100
72 / 100
Moat domains
Demand, Supply
Supply, Legal, Demand
Last update
2025-12-30
2026-01-05

Moat coverage

Shared moat types

Physical Network Density

McDonald's Corporation strengths

Brand TrustDistribution ControlOperational ExcellenceLong Term Contracts

Watsco, Inc. strengths

Contractual ExclusivityScale Economies Unit CostData Workflow Lockin

Segment mix

McDonald's Corporation segments

Full profile >

U.S.

Competitive

41%

International Operated Markets

Competitive

48.7%

International Developmental Licensed Markets & Corporate

Competitive

10.3%

Watsco, Inc. segments

Full profile >

HVAC/R Distribution

Competitive

100%

Want the full wide moat stocks list?

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Proven models entering the expansion stage with unit economics that work.

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Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.