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.
Insider selling during the last 30 days
Here is a table of McDonald's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Kenneth Koziol||EVP||April 23||905||No||13,884 shares||6.1%|
|Gloria Santona||EVP||April 25||19,154||No||60,719 shares||24.0%|
|Donald Thompson||CEO||April 23||30,000||No||77,720 shares||27.8%|
|Richard Floersch||EVP||April 24||19,987||No||42,301 shares||32.1%|
|John Rogers||Director||April 23||5,000||No||87,500 shares||5.4%|
|Robert Eckert||Director||April 24||5,000||No||10,000 shares||33.3%|
There have been 80,046 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of McDonald's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 285,825 shares sold, and there have been 425 shares purchased by insiders since January 2013. The month of April 2014 has seen the most insider selling.
McDonald's reported the first-quarter financial results on April 22 with the following highlights:
|Net income||$1.2 billion|
The six insiders sold their shares after these results.
McDonald's revenue growth has been slowing down since 2011.
McDonald's 2014 guidance is as follows:
|Net new restaurants||1,000-1,100|
McDonald's competitors include Burger King Worldwide (BKW), and The Wendy's Company (NASDAQ:WEN). Here is a table comparing these companies.
|Qtrly Rev Growth (yoy):||0.02||-0.34||-0.06|
|PEG (5 yr expected):||2.35||1.77||1.31|
McDonald's has the highest PEG ratio among these three companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only McDonald's has seen intensive insider selling during the last 30 days.
There have been six different insiders selling McDonald's, and there have not been any insiders buying McDonald's during the last 30 days. Four of these six insiders decreased their holdings by more than 10%. McDonald's has an insider ownership of 0.08%.
Before going short McDonald's, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high PEG ratio, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within 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.