McDonald's Menu: Restaurant CEO Don Thompson Resigns, Midday Trading Shares Soar
Don Thompson, McDonald's CEO for the last two and half years, will step down on March 1. The company's Chief Brand Officer Steve Easterbrook will replace him.
The news of Thompson's departure has sent shares soaring Wednesday and Thursday. In midday trading, shares of McDonald's were up almost 5 percent.
The fast food giant has seen its sales drop worldwide as consumers have headed elsewhere for their dining options. U.S. same store sales, a key measure in restaurants, fell 2 percent in the most recent quarter. In fact, U.S. restaurants have not seen an increase in same store sales since October 2013.
McDonald's has tried to fend off its competitors by offering creative promotions and items. The chain offered free coffee trying to steal customers away from getting their morning java at competitors like Starbucks or Dunkin Donuts.
Recent media reports and social media postings have given McDonald's an image issue regarding the way their products are made. Those reports prompted the company to start a truth-telling campaign to answer questions about McDonald's food.
Easterbook previously served as the president of McDonald's Europe. He was in charge of expanding the marketing and helping to advance "menu innovation."
Over the past two and a half years, shares of McDonald's have not moved in line with the Dow Jones Industrial Average, which has been up 33 percent during Thompson's tenure.
McDonald's has started to eliminate items from the menu to make the service process faster and the menu less confusing. The company will also introduce the "Create Your Taste" program to let customers build their own sandwiches, USAToday reported in December.
Gone from the menu, according to Fox News, will be three of the Quarter Pounder with Cheese burgers, two of the three Snack Wraps and two of the three Premium Chicken sandwiches.
Five value menu choices will also be eliminated, making just 11 choices for Extra Value Meals.
What do you think of McDonald's? Are they a good company or are they headed in the wrong direction?
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