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In this article, I will feature one restaurant that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

McDonald’'s Corporation (NYSE:MCD) franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of McDonald's insider-trading activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Timothy FentonCOOFeb 1824,492No37,359 shares39.6%
David HoffmannPresident, McDonald's APMEAFeb 12618No13,739 shares + 28,978 options1.4%
Donald ThompsonCEOJan 2430,000No59,158 shares33.6%

There have been 55,110 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of McDonald's insider-trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
February 201425,1100
January 201430,0000
December 201300
November 201315,9710
October 20139,680425
September 201320,0000
August 201300
July 20131,7710
June 201300
May 201300
April 201329,6110
March 201341,3640
February 20139,6000
January 201322,6720

There have been 205,779 shares sold, and there have been 425 shares purchased by insiders since January 2013.


McDonald's reported the full-year 2013 financial results on January 23 with the following highlights:

Revenue$28.1 billion
Net income$5.6 billion

MCD Revenue (Quarterly YoY Growth) Chart

McDonald's revenue growth has been slowing down since 2011.


McDonald's competitors include Burger King Worldwide (BKW), and Yum! Brands (NYSE:YUM). Here is a table comparing these companies.

CompanyMCDBKWYUMIndustry Average (Restaurants)
Market Cap:95.27B9.17B32.33B23.41B
Qtrly Rev Growth (yoy):0.02-0.340.010.23
Gross Margin:0.390.700.260.26
Operating Margin:0.300.500.150.14
Net Income:5.59B233.70M1.09BN/A
PEG (5 yr expected):1.951.781.642.32

McDonald's is trading above the industry average P/S ratio.

Here is a table of these competitors' insider activities during the last 30 days.

CompanyInsider buying / sharesInsider selling / shares

Yum! Brands has also seen intensive insider selling during the last 30 days.


There have been three different insiders selling McDonald's, and there have not been any insiders buying McDonald's during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. McDonald's has an insider ownership of 0.08%.

McDonald's has a $85 price target from the Point and Figure chart. I believe there is an opportunity for a short entry with the $85 price target. I would place a stop loss at $101, which is the all-time high. The two main reasons for the proposed short entry are bearish Point and Figure chart, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in MCD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.