McDonald’s Corporation (NYSE:MCD), for the second time in the last 2 years, has changed its top leadership. The struggling company, in order to survive in the United States Market, recently planned on changing its President. This action by the board will no doubt increase the pressure on the CEO of the company, Don Thompson.
McDonald’s Corporation (NYSE:MCD), the biggest fast food chain in the world, replaced its U.S. sector’s president, Jeff Stratton, with an outsider, Mike Andres. It is important to note here that Jeff Stratton had been the president of the U.S. sector of the company since December 2012.
The president of the company, Don Thompson, who became the CEO in July 2012, has led the company for around 2 years; and the company has shown declining and disappointing results from the sales in the region of United States.
Sara Senatore, an analyst at Bernstein, said that the replacement of U.S. president of the company will put a lot of pressure on the chief executive, for the blame will come upon him if the company still reports weak numbers in that region.
The company has constantly been seeing flat or decreased sales in its stores located in the region of United States since November 2013. Market researchers are of the view that the company’s service has become slow due to the expanded menus that it introduced last year. Moreover, the company is facing severe competition against Burger King and Wendy’s in U.S.
According to the reports, Andres, who is 56, will resume his duties as the president of U.S. region of the company from October 15, 2014. Andrew has previously served as the CEO and chairman of Logan’s Roadhouse Inc., a restaurant chain in United States. Rumors have it that he will be responsible for overseeing the business of the company in the region of Canada as well.
The new president of the company started his career as the manager of the McDonald’s unit that his family owned in north California. When he reached 30, he was made the president of central U.S. McDonald’s chains and the CEO and president of Boston Market: a subsidiary company of McDonald’s Corporation (NYSE:MCD).
Jeff Stratton, who is 58, held the position of chief restaurant officer of McDonald’s Corporation (NYSE:MCD) before becoming the president of the U.S. division of the company. Jeff replaced Jan Fields, who not only expanded the Happy Meal menu but also introduced some more items in the McCafe drinks menu.
According to the company, Jeff will retire on October 15, 2014.
Steve West, an analyst at Investment Technology Group, said that McDonald’s Corporation (NYSE:MCD) usually hired executives from within the company. Making Andrew the U.S. division’s president was a bit unexpected.
Coming to the stock prices of McDonald’s Corporation (NYSE:MCD), the company, on the last trading day, August 22, 2014, started its stocks at a price of $94.53 and closed at a price of $94.45. The company has a market capitalization of $92.74 billion with a price to earnings ratio of 17.11.
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