Reportedly, Chris Kempczinski has taken the reins at McDonald’s replacing Steve Easterbrook as the company’s new CEO. On Sunday reportedly Easterbrook was ousted after a recent “consensual relationship” with an employee was disclosed.
Kempczinski, an MBA graduate from Harvard Business School completed his bachelor’s from Duke University. He started his career as a brand manager with Procter & Gamble (PG) for four years after which he has worked with PepsiCo (PEP) and Kraft Foods (KHC). Kempczinski has been in service with McDonald’s since October 2015 where he joined as a part of the global strategy team and was promoted as President, Operations USA within one and a half years of service.
McDonald’s Corporation (MCD) is the leading global foodservice retailer with nearly 37,000 locations in over 100 countries. The Corporation operates and franchises McDonald’s restaurants in the US and across the globe with over 90% of its restaurants owned and operated by local, independent businessmen and women. Recently. McDonald’s Corp reported their Q3 ending Sept. 30 and missing Wall Street expectations for the first time in two years. Net income dropped 2% to $1.61 billion in the quarter from $1.64 billion a year earlier. Total revenue for both U.S. and overseas operations reported at $5.43 billion missing expectations at $5.49 billion. Wall Street believed strong competition from rivals like Wendy’s and Burger King resulted in the low quarter performance of the company. In order to increase customer base and handling competition, McDonald’s introduced digital ordering kiosks, mobile ordering as well as pay and pickup services and partnerships with app-based delivery service, which led to a 2% rise in operating costs to about $3 billion and reduced profits of $2.11 per share.
Globally, the fast-food giant reported better-than-expected sales growth of 5.9% on strong sales in the UK and France markets.
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