Insider Selling: McDonald's (NYSE:MCD) Insider Sells 2,626 Shares of Stock

Key Points

• Insider sale: President of McDonald’s USA Joseph Erlinger sold 2,626 shares on Feb. 10 at an average price of $325.25 (totaling $854,106.50), cutting his holding by 32.73% to 5,398 shares; the sale was reported on an SEC Form 4.
• Earnings beat: McDonald’s reported Q4 EPS of $3.12 versus $3.00 expected, and analysts forecast roughly $12.25 in EPS for the current year, supporting the company’s defensive earnings profile.
• Dividend and valuation: The company declared a $1.86 quarterly dividend ($7.44 annualized, ~2.3% yield, ex-dividend Mar. 3), while the stock trades near $323 with a market cap of about $230.3B and a P/E of ~27.6.

McDonald's Corporation (NYSE:MCD - Get Free Report) insider Joseph Erlinger sold 2,626 shares of the company's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $325.25, for a total transaction of $854,106.50. Following the transaction, the insider owned 5,398 shares in the company, valued at $1,755,699.50. The trade was a 32.73% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website.

McDonald's Price Performance

MCD stock traded down $2.64 during trading on Wednesday, hitting $323.33. 4,431,353 shares of the company traded hands, compared to its average volume of 3,256,912. The stock's 50-day simple moving average is $311.90 and its 200 day simple moving average is $307.79. McDonald's Corporation has a 1 year low of $283.47 and a 1 year high of $328.06. The company has a market cap of $230.26 billion, a PE ratio of 27.59, a P/E/G ratio of 3.29 and a beta of 0.52.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.00 by $0.12. McDonald's had a negative return on equity of 280.89% and a net margin of 32.04%. Research analysts expect that McDonald's Corporation will post 12.25 earnings per share for the current year.

McDonald's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd will be paid a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Tuesday, March 3rd. McDonald's's dividend payout ratio (DPR) is presently 63.48%.

Trending Headlines about McDonald's

Here are the key news stories impacting McDonald's this week:

• Positive Sentiment: Viral promotion — McNugget Caviar kits sold out quickly, briefly crashing McDonald’s sites and generating nationwide buzz that can boost brand visibility and short‑term traffic. McNugget Caviar website crash: What to know
• Positive Sentiment: Value strategy may drive same‑store sales — McDonald’s Extra Value Meals and Snack Wraps are meant to attract price‑sensitive and higher‑income customers, which could support comp growth in the quarter. Value is the key to McDonald's growth plans, but it's creating tensions with some franchisees
• Positive Sentiment: Board addition adds experience — Appointment of James D. Farley Jr. to the board is a governance positive that may be viewed favorably by investors. James D. Farley, Jr. Elected to McDonald's Board of Directors
• Neutral Sentiment: Earnings expectations are high — Prediction markets and previews suggest strong visitor growth could be priced in, so results that meet expectations may produce muted moves while a beat could push shares higher. McDonald's Q4 Earnings Preview
• Neutral Sentiment: International growth opportunities are longer‑term — Debates over competitiveness in markets like India vs. Yum! Brands are strategic and unlikely to swing the stock intraday. McDonald's vs. Yum! Brands: Which Wins the Battle for India as US Growth Slows?
• Negative Sentiment: Franchisee tensions — Some franchisees are resisting centralized value pricing, which could limit rollout effectiveness and margin management if disputes persist. Value is the key to McDonald's growth plans, but it's creating tensions with some franchisees
• Negative Sentiment: Macro and health‑trend risks — Investors remain concerned about broader consumer weakness and the potential impact of GLP‑1 drugs on discretionary food spending, which has capped MCD’s year‑over‑year gains. McDonald's is about to report earnings. Here's what to expect
• Negative Sentiment: Short‑term caution ahead of results — The stock is trading lower today as traders reduce risk going into the Q4 print; results and guidance will likely determine the next directional move. McDonald's Stock Edges Lower Ahead Of Q4 Earnings

Institutional Trading of McDonald's

A number of institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its stake in shares of McDonald's by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock valued at $22,112,675,000 after purchasing an additional 703,458 shares during the period. State Street Corp lifted its stake in McDonald's by 0.6% during the third quarter. State Street Corp now owns 35,024,857 shares of the fast-food giant's stock valued at $10,643,704,000 after purchasing an additional 196,505 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of McDonald's by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock worth $5,195,965,000 after acquiring an additional 76,090 shares in the last quarter. Norges Bank purchased a new position in McDonald's in the 2nd quarter worth about $2,780,712,000. Finally, Laurel Wealth Advisors LLC raised its holdings in shares of McDonald's by 29,382.3% during the second quarter. Laurel Wealth Advisors LLC now owns 5,737,548 shares of the fast-food giant's stock valued at $1,676,339,000 after acquiring an additional 5,718,087 shares during the period. 70.29% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. BMO Capital Markets reaffirmed an "outperform" rating on shares of McDonald's in a research report on Thursday, November 6th. Citigroup decreased their price objective on McDonald's from $381.00 to $375.00 and set a "buy" rating for the company in a report on Tuesday, October 21st. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a research report on Thursday, January 8th. Barclays increased their price target on shares of McDonald's from $358.00 to $372.00 and gave the stock an "overweight" rating in a report on Wednesday, January 7th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of McDonald's in a report on Wednesday, January 28th. Fourteen investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $332.38.

About McDonald's

McDonald's Corporation NYSE: MCD is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald's serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand's national and international expansion.

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