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Sun 3rd Nov 2019 - McDonald’s sacks chief executive Steve Easterbrook over relationship with employee
McDonald’s sacks chief executive Steve Easterbrook over relationship with employee: McDonald's has announced it has fired chief executive Steve Easterbrook after investigating a consensual relationship he had with an unnamed employee. The company has named Chris Kempczinski, most recently president of McDonald's USA as its new chief executive effective immediately. He has also been elected to the McDonald's board of directors. Kempczinski succeeds the UK-born Easterbrook, who the company had sacked “following the board's determination he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.” In an email to employees, Easterbrook said: “This was a mistake. Given the values of the company, I agree with the board that it is time for me to move on.” Easterbrook, the former chief executive of Wagamama and PizzaExpress, had been chief executive of McDonald’s since March 2015. McDonald’s also announced Joe Erlinger, most recently president of its international operated markets business, had been appointed president of McDonald's USA, effective immediately. Enrique Hernandez Jr, chairman of McDonald's board of directors, said: “Chris takes the reins of this great company at a time of strong, sustained performance, and the board has every confidence he is the best leader to set the vision and drive the plans for the company's continued success. He has the right mix of skills and experience to lead us forward having run our US business, where franchisees are delivering strong financial and operational results, and overseen global strategy, business development and innovation. In particular, Chris was instrumental in the development of the company's strategic plan, which has enabled global growth and leadership, and has overseen the most comprehensive transformation of the US business in McDonald's history.” Kempczinski said: “I'm thrilled to be leading this incredible company. Working alongside our talented team, our board, our franchisees and suppliers, I am committed to upholding our rich heritage of serving our customers and driving value for our shareholders and other stakeholders. As one of the world's leading brands, McDonald's makes a difference in the lives of people every day. We have a responsibility not only to serve great food, but to make it responsibly and to enrich the communities in which we operate. I am energised by this challenge and look forward to guiding McDonald's continued success.” Easterbrook, who grew up in Watford, received widespread praise for turning around McDonalds’ UK business after taking over in 2006. He was subsequently made president of McDonald’s Europe. However, he shocked the company in 2011 when he ended an 18-year career at the fast-food giant to become chief executive of PizzaExpress. Easterbrook then took the helm at Wagamama a year later, before re-joining McDonald’s in 2013. As McDonald’s global chief executive, Easterbrook brought the fast food chain out of a multi-year slump, characterised by sluggish sales and restaurant closures. Under his stewardship, McDonald’s brought in initiatives such as all-day breakfast, new menu offerings, and kick-started a major investment in technology. McDonald’s also rolled out McDelivery with UberEats to more than 8,000 sites. However, more recently tensions have again risen in the US between the brand and its franchisees. The group's shares declined last month, as quarterly earnings and US sales fell short of expectations.


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