Steve Easterbrook out as CEO at McDonalds after violation company policy

Yesterday, McDonald's Corporation announced that its Board of Directors has named Chris Kempczinski, most recently President, McDonald's USA, as President and Chief Executive Officer, effective immediately.

Kempczinski has also been elected to the McDonald's Board of Directors.

Kempczinski succeeds Steve Easterbrook, who has separated from the Company following the Board's determination that he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.

Enrique Hernandez Jr., Chairman of McDonald's Board of Directors:

“Chris takes the reins of this great company at a time of strong, sustained performance, and the Board has every confidence that 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 U.S. 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 U.S. business in McDonald's history.”

Chris Kempczinski:

“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 energized by this challenge and look forward to guiding McDonald's continued success.”

McDonald's expects to file its Form 10-Q for the period ending September 30, 2019, by Tuesday, November 5, 2019.

The Company confirms that this leadership transition is unrelated to the Company's operational or financial performance.

Replacing Chris Kempczinski as President, McDonald's USA effective immediately, is Joe Erlinger, most recently President, International Operated Markets.

Chris Kempczinski:

“Joe is a respected leader who is returning to the U.S. after working around the world for McDonald's.”

“He has a proven track record of driving strong results through collaboration with franchisees and a relentless focus on the customer.”

“I am proud and excited that one of my first moves as CEO is to announce his appointment, and am confident in all he will bring to our U.S. business.”

In his new role, Erlinger will be responsible for the business operations of approximately 14,000 McDonald's restaurants in the United States, reporting to Kempczinski.

Joe Erlinger:

“Our U.S. business is the heartbeat of McDonald's.”

“I look forward to working with our franchisees to build upon the transformational progress in our largest market.”

“With a talented team that is committed to running great restaurants, we have tremendous momentum to deliver on our brand promise to all of our customers.”