McDonald’s just announced that CEO for the company, Don Thompson would be retiring as of March 1. He is set to be replaced by Senior Executive Vice President for the company, Steve Easterbrook, who also serves as Chief Brand Manager. Easterbrook has been with the company for more than 25 years, and his announcement as successor was met with enthusiasm in the market. The stock went up around 3 percent very shortly after the announcement was made.
Many blame Thompson for the lack of financial performance from recent years. Despite the 33 percent increase in the Dow, and the 47 percent increase in the S&P since he took office, McDonald’s stock has remained essentially level during that time. The company has been experiencing difficulties with some of their ventures, including their problems in Asia resulting from one of their suppliers being at the center of a food-safety investigation last summer. The company’s comparable sales, the increase over last year, was at zero or negative for every month in 2014 except for December. For the time being, the market appears optimistic with the prospect of Easterbrook at the helm.
By Jim Malone
Image courtesy of Steve Baker – Flickr License