Tags: ceo | don thompson | exits | mcdonalds

CEO Don Thompson Exits Slumping McDonald's

By    |   Thursday, 29 Jan 2015 07:02 AM

McDonald's Don Thompson is leaving as CEO of the burger kingpin after the company spent months in a financial slump and missed Wall Street projections in every quarter of 2014.

Thompson, 51, who became McDonald's first African-American CEO in 2012, will be replaced by Steve Easterbrook, the company's senior executive vice president and chief brand officer who has been overseeing the burger leader's marketing and menu development, reported Crain's Chicago Business.

"The company was not going to be fixed until Don Thompson (left)," Howard Penny, a restaurant analyst with Hedgeye Risk Management told Chicago Business. McDonald's announced last week that revenues fell again last quarter 7.3 percent.

"This had to happen, and I don't know how else to say it," said Penny. "(Easterbrook) is a great choice for the company, but now we've got to see what he does. You want to see him talk about wholesale changes; McDonald's has to go through a massive restructuring."

Bloomberg reported that McDonald's shares jumped as high as 3.5 percent to $91.90 in late trading after the announcement of Thompson's departure. McDonald's stock dipped 3.4 percent in 2014.

"It's tough to say goodbye to the McFamily, but there is a time and season for everything," Thompson said in a statement released by McDonald's. "I am truly confident as I pass the reins over to Steve that he will continue to move our business and brand forward."

McDonald's said Easterbrook previously worked across the company's global businesses, including president of McDonald's Europe.

"I am grateful to have had the opportunity to work with Don and congratulate him on his remarkable career at McDonald's," said Easterbrook. "I am honored to lead this great brand, and am committed to working with our franchisees, suppliers and employees to drive forward our strategic business priorities to better serve our customers."

Bloomberg reported that McDonald's had not posted growth in the United States since October 2013 and was stunned by increasing competition from chains like Chipotle Mexican Grill Inc.

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McDonald's Don Thompson is leaving as CEO of the burger kingpin after the company spent months in a financial slump and missed Wall Street projections in every quarter of 2014.
ceo, don thompson, exits, mcdonalds
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2015-02-29
Thursday, 29 Jan 2015 07:02 AM
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