McDonald’s CEO Don Thompson has stepped down after two and a half years in the job.
McDonald’s Corp said Don Thompson will retire as its chief executive and be replaced by Steve Easterbrook, effective March 1.
British-born Steve Easterbrook is the company’s current chief brand officer.
The move comes as McDonald’s continues to struggle with a declining customer base in the US.
In a press release, Don Thompson, a 25-year veteran, said: “It’s tough to say goodbye to the McFamily.”
McDonald’s recently reported disappointing results.
Q4 2014 earnings were $1.1 billion, down 21% from a year earlier. The company also reported its fifth consecutive decline in sales.
Sales in the lucrative US market were down by 4.1%, as consumers continue to eschew McDonald’s, in favor of so-called “fast-casual” restaurants like Chipotle and Shake Shack.
After the earnings were released on January 23, McDonald’s said its profits would remain under pressure for the next several months as it sought to lure back consumers with menu changes.
McDonald’s is also facing a labor issue in the US, where efforts to unionize fast food workers have led to a spate of lawsuits.
Don Thompson was paid $9.5 million in 2013, the most recent year for which data is available.
His successor, Steve Easterbrook, grew up in Watford, UK, and previously ran the Pizza Express and Wagamama restaurant chains.
He attended Watford Boys Grammar School and studied Natural Sciences at Durham University, before becoming an accountant at Price Waterhouse.
Steve Easterbrook will become McDonald’s first ever non-US chief executive.
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McDonald’s CEO Don Thompson has claimed he lost 20 lbs in weight, despite eating from the chain’s menu every day.
Don Thompson said he regularly worked out at a gym to lose the pounds but did not stop wolfing down the fast food meals whenever he could.
But his claims were met with skepticism on Twitter with some branding it the “McDiet” and asking him to “prove it”.
Last week McDonald’s unveiled its most unhealthy item ever, the Mega Potato, which is a double size portion of fries. At 1,142 calories Mega Potato is more than half the recommended daily calorie intake for a woman.
Don Thompson said he shed the weight over the course of a year by getting up early in the mornings and going to the gym.
The fast food boss insisted he still ate at McDonald’s ‘every single day’, although he did not specify what he chose from the menu.
He admitted that despite McDonald’s trying to rebrand itself as healthier, its salads make up only 2-3% of sales.
But the McDonald’s CEO claimed the company was making efforts to include more vegetables in its meals.
Don Thompson, who has been on the job for less than a year, was responding to a question about how the company is adapting amid growing concerns about obesity when he pointed out his slimmer frame.
McDonald’s CEO Don Thompson has claimed he lost 20 lbs in weight, despite eating from the chain’s menu every day
He said that he lost the weight by getting active again and noted that it’s rare to see Europeans that are “very, very heavy” because they walk a lot.
“And so I think that balance is really important to people,” he said.
“I don’t see salads as being a major growth driver in the near future,” Don Thompson told investors in New York this week, according to Bloomberg News.
It’s no wonder the salads have failed to lure health conscious diners when they are often as fat-laden as a Big Mac and boast names such as Bacon Ranch and Southwest Crispy Chicken.
In comparison to poor salad sales, the restaurant’s Dollar Menu generates 13-14% of U.S. business, he said.
However, Don Thompson claims the company isn’t giving up on selling fruit and vegetables. For instance, some of McDonald’s new McWraps have tomato, cucumber slices and shredded lettuce inside, he said.
McDonald’s first added tossed salads to its U.S. menu in 1987.
Bloomberg News reported earlier this month that it is considered ditching Caesar salads after it already got rid of Fruit & Walnut salads from its menu this year.
McDonald’s shares fell more than 2.2% to close at $98.28 on Wednesday, after the announcement. At one point they declined as much as 2.9% for the biggest intraday drop since October 19 and they continued to fall on Thursday.
The shares gained 15% this year through to Tuesday. In comparison, the Standard & Poor’s 500 Index advanced 16%.
The chain announced it was axing its Fruit & Walnut salad in March after competitors Burger King Worldwide Inc and Wendy’s Co began closing the gap with McDonald’s.
McDonald’s, the world’s biggest hamburger chain for years, held a huge lead against most rivals, but some of those chains now are luring away diners with fast-changing menus featuring tempting new food.
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