After two and a half years in the job, McDonald’s chief executive Don Thompson is stepping down in a mid a series of key management changes. The announcement follows a string of less-than-impressive results, the most significant being the company’s fourth quarter earnings, which were down 21 percent on the year previous to a disappointing $1.1bn.
“It’s tough to say goodbye to the McFamily, but there is a time and season for everything,” said Thompson in a statement. “I am truly confident as I pass the reins over to Steve, that he will continue to move our business and brand forward.”
The announcement follows a string of less-than-impressive results
Stepping in, as of March, will be the UK-born Global Chief Brand Officer Steve Easterbrook, whose recent return to the fast food giant in 2011 brought with it a much-needed boost to the company’s bottom line. “Steve is a strong and experienced executive who successfully led our UK and European business units and the Board is confident that he can effectively lead the Company to improved financial and operational performance,” said the non-executive Chairman of the Board of Directors, Andrew McKenna.
The most worrying aspect of the company’s fourth quarter results are indications that McDonald’s is losing market share to its much younger rivals. Fourth quarter comparable sales in the US are down 1.7 percent and consumer traffic slid 4.1 percent, which together show that competition and changing consumer habits are beginning to hit McDonalds’ where it matters most. Still, the company still boasts 36,000 chains and serves close to 69 million customers each day in over 100 countries.
The board’s decision to hire a replacement from within aligns with a long-time McDonald’s tradition, however, the decision to appoint Easterbrook marks the first time a non-US executive will lead the company. “I am grateful to have had the opportunity to work with Don and congratulate him on his remarkable career at McDonald’s,” said Easterbrook in a statement. “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.”