On September 18, 2023, Christopher Kempczinski, President and CEO of McDonald's Corp (MCD, Financial), sold 5,606 shares of the company. This move is part of a broader trend of insider selling at McDonald's Corp, which we will explore in this article.
Christopher Kempczinski has been with McDonald's Corp since 2015, initially serving as Executive Vice President - Strategy, Business Development and Innovation. In 2019, he was appointed as the President and CEO of the company. Under his leadership, McDonald's has continued to expand its global footprint and innovate its menu offerings.
McDonald's Corp is a global fast-food chain that was founded in 1940. The company operates and franchises McDonald's restaurants, which serve a locally-relevant menu of quality food and beverages in more than 100 countries. McDonald's Corp also provides various digital capabilities to its customers and franchisees, including mobile ordering, delivery, and digital payments.
Over the past year, the insider has sold a total of 5,606 shares and purchased 0 shares. This trend of insider selling is reflected in the company's overall insider transaction history. Over the past year, there have been 1 insider buys and 14 insider sells at McDonald's Corp.
The stock was trading at $280 per share on the day of the insider's recent sell, giving McDonald's Corp a market cap of $202.01 billion. The price-earnings ratio is 25.50, which is higher than the industry median of 24.07 and the company’s historical median price-earnings ratio. This suggests that the stock is currently trading at a premium compared to its peers and its own historical average.
However, the stock's price-to-GF-Value ratio of 0.98 indicates that it is fairly valued based on its GF Value of $285.02. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sell of 5,606 shares, along with the broader trend of insider selling at McDonald's Corp, could be a signal for investors to exercise caution. While the stock appears to be fairly valued based on its GF Value, its higher-than-average price-earnings ratio suggests that it may be trading at a premium. As always, investors should conduct their own research and consider their investment goals and risk tolerance before making investment decisions.
