Consensual relationship with employee led to Easterbrook ouster
McDonald’s CEO Steve Easterbrook is out. Chirs Kempczinski is in. The former chief executive of McDonald’s was forced out due to his relationship with an employee. In an investigation, McDonald’s Board of Directors determined his actions were against company policy. Moreover, he “demonstrated poor judgment,” read a company statement.
McDonald’s immediately promoted Kempczinski to president and chief executive officer. The new McDonald’s CEO was previously McDonald’s USA president. Arriving at McDonald’s in 2015, Kempczinski oversaw global strategy, business development and innovation. His role as president of McDonald’s USA also meant he was responsible for the operations of 14,000 restaurants nationwide.
In competitive QSR segment, McDonald’s holding its own
McDonald’s had been making financial and technological strides. Most recently, it acquired Apprente, a technology company focused on conversational ordering. Apprente and Dynamic Yield, its earlier acquisition for suggestive ordering at drive-thrus, form the foundation of the new McTech Labs. In the United States, McDonald’s installed Dynamic Yield in 9,500 restaurants. In addition, the QSR rolls out the new technology to the balance of stores by year’s end.
McDonald’s also posted strong global comparable sales during Q3, with an increase of 5.9 percent from last year. Domestic comparable sales increased 4.8 percent in the U.S. Meanwhile, the QSR posted GAAP diluted earnings per share of $2.11—about flat compared to last year.
“He has the right mix of skills and experience to lead us forward having run our U.S. business, where franchisees are delivering strong financial and operational results, and overseen global strategy, business development and innovation,” said Enrique Hernandez Jr., chairman of McDonald’s Board of Directors.
“In particular, Chris was instrumental in the development of the Company’s strategic plan, which has enabled global growth and leadership, and has overseen the most comprehensive transformation of the U.S. business in McDonald’s history.”
Photo credit: McDonald’s
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