VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Saturday, January 3, 2026

Stock Comparison

McDonald's Corporation vs Xero Limited

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)$216.1B
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

Xero Limited

XRO · Australian Securities Exchange

Market cap (USD)
Gross margin (TTM)
Operating margin (TTM)
Net margin (TTM)
SectorTechnology
Industry
CountryNZ
Data as of2026-01-02
Moat score
71/ 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 Xero Limited's moat claims, evidence, and risks.

View XRO analysis

Comparison highlights

  • Moat score gap: McDonald's Corporation leads (80 / 100 vs 71 / 100 for Xero Limited).
  • Segment focus: McDonald's Corporation has 3 segments (48.7% in International Operated Markets); Xero Limited has 2 segments.
  • Primary market structure: Competitive vs Oligopoly. Pricing power: Moderate vs Moderate.
  • Moat breadth: McDonald's Corporation has 5 moat types across 2 domains; Xero Limited has 7 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%

Xero Limited

Core Accounting Subscription Platform

Market

Cloud accounting software for small businesses and their advisors

Geography

Global

Customer

SMB; accountants & bookkeepers

Role

Software platform (SaaS)

Side-by-side metrics

McDonald's Corporation
Xero Limited
Ticker / Exchange
MCD - New York Stock Exchange
XRO - Australian Securities Exchange
Market cap (USD)
$216.1B
n/a
Gross margin (TTM)
57.4%
n/a
Operating margin (TTM)
46.1%
n/a
Net margin (TTM)
32%
n/a
Sector
Consumer
Technology
Industry
Restaurants
n/a
HQ country
US
NZ
Primary segment
International Operated Markets
Core Accounting Subscription Platform
Market structure
Competitive
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
80 / 100
71 / 100
Moat domains
Demand, Supply
Demand, Network, Financial
Last update
2025-12-30
2026-01-02

Moat coverage

Shared moat types

No overlap yet.

McDonald's Corporation strengths

Brand TrustPhysical Network DensityDistribution ControlOperational ExcellenceLong Term Contracts

Xero Limited strengths

Data Workflow LockinSwitching Costs GeneralTwo Sided NetworkBenchmark Pricing PowerInteroperability HubEcosystem ComplementsSuite Bundling

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%

Xero Limited segments

Full profile >

Core Accounting Subscription Platform

Oligopoly

n/a

Platform Services (Payments, Payroll, App Ecosystem)

Competitive

n/a

Want the full wide moat stocks list?

Browse the full ranking of wide moat stocks, updated with moat scores and segment context.

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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.