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Don Thompson, the CEO of McDonald’s has stepped down and will be replaced by Steve Easterbrook the head of McDonald’s UK.
The performance by McDonald’s feel short of corporate expectation in 2014, said Don Thompson CEO and president earlier in the week. Comparable sales worldwide were lower by 1% for the complete year and by 0.9% during the fourth quarter.
Comparable sales in the U.S. were down for the fifth straight quarter, dropping 1.7% during the fourth quarter. In Europe, comp sales fell 1.1%; Asia/Middle East/Pacific/Africa comps dropped 4.8%.
Thompson said the company was responding to declining sales with urgency with redefined menu choices and personalization.
Thompson who has only been at the helm for two and a half years will step aside on March 1. Thompson said it would be tough saying his goodbyes but a time and season exists for everything.
This change comes after the fast food behemoth reported a drop in its global profit of more than 21% for the quarter ending December 31.
Business at McDonald’s in Asia has suffered amidst food scares. However, it is the inability of the company to increase popularity in its domestic business that has caused worry, as it is still the majority of sales for the company.
It has been over a year since McDonald’s reported an increase in sales of same stores in the U.S.
It will not be easy righting this ship. McDonald’s woes have not persisted because of a lack of effort. The company has attempted everything from free coffee to made-to-order burgers and extending its value menus.
McDonald’s however remains optimistic about the ability of Easterbrook to change the present course of the company.
The optimism has seemed to trickle down to the shareholders of the company. McDonald’s stock was up 3% in trading after hours on Wednesday following the announcement of Thompson stepping down.
