GuruFocus - On July 23, 2024, Joseph Erlinger, President of McDonald's USA, executed a sale of 1,099 shares of McDonald's Corp (NYSE:MCD) (NYSE:MCD). The transaction was documented in an SEC Filing. Following this transaction, the insider now owns 13,681.34 shares of the company.
McDonald's Corp operates globally as a fast-food company, primarily known for its hamburgers, chicken products, cheeseburgers, breakfast items, soft drinks, and desserts. The company has managed to establish a significant presence worldwide, adapting its menu to meet local tastes and preferences.
Over the past year, Joseph Erlinger has sold a total of 28,024 shares and has not made any purchases of the company's stock. This recent sale is part of a broader trend observed within the company, where there have been 24 insider sells and no insider buys over the past year.
Shares of McDonald's Corp were trading at $260 on the day of the sale, giving the company a market cap of approximately $183.09 billion. The price-earnings ratio of the stock stands at 21.57, which is lower than both the industry median of 22.355 and the company's historical median.
According to the GF Value, which is an intrinsic value estimate used to gauge the fair value of stocks, McDonald's Corp has a GF Value of $303.81. With the current price of $260, the price-to-GF-Value ratio is 0.86, indicating that the stock is Modestly Undervalued.
The GF Value is calculated based on historical trading multiples like the price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on the companys past returns and growth, and future business performance estimates from Morningstar analysts.
This sale by the insider might be of interest to investors tracking insider behaviors as an indicator of the company's future performance and stock valuation adjustments.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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