McDonald’s CEO Steve Easterbrook has announced a major shakeup after the fast-food chain reported poor results for Q1 2015.
The world’s largest rest chain it will restructure its business and increase its number of franchised restaurants globally.
Steve Easterbrook said he wanted to move away from its “cumbersome” structure and increase “digital engagement”.
“The numbers don’t lie,” he said.
“I will not shy away from the urgent need to reset this business… and how we galvanize competitive threats.”
After two months into his CEO term, Steve Easterbrook said the turnaround plan was aimed at creating a leaner management structure with more “hard-edged accountability” that was less built around geography and more on “commercial logic”.
“In the last five years, the world has moved faster outside the business than inside,” he added.
“We’re not on our game.
“We’d like less simple talk of millennials [people born between 1980 and the mid-2000s] as though they are one simple group with shared attitudes.”
McDonald’s also announced it would be focusing more on regions that earned it the most – namely the US, which brings in 40% of operating income.
Steve Easterbrook also said its top international markets, such as Australia, Canada, France and the UK, would become a priority.
McDonald’s also identified high-growth markets in countries such as China and Poland, where new stores will be opened to boost its share in the market of “IEO” – Informal Eating Out.
Steve Easterbrook added: “We can no longer afford to carry legacy commitments, legacy structure or legacy attitudes.”
McDonald’s was the Dow Jones share index’s biggest faller, with shares down 1.7% to $96.13.
Standard & Poor’s cut its rating on McDonald’s from “A” to “A-“.
