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Steve Easterbrook Fired as McDonald’s C.E.O. Steve Easterbrook Fired as McDonald’s C.E.O.
(32 minutes later)
Steve Easterbrook has been fired from his role as chief executive of McDonald’s, the fast-food chain announced on Sunday, after he engaged in a consensual relationship with an employee that violated company policy. Steve Easterbrook has been fired as chief executive of McDonald’s, the fast-food chain announced on Sunday, after he engaged in a consensual relationship with an employee that violated company policy.
In a statement announcing the firing, McDonald’s said the company’s board had determined that Mr. Easterbrook had “demonstrated poor judgment.”In a statement announcing the firing, McDonald’s said the company’s board had determined that Mr. Easterbrook had “demonstrated poor judgment.”
“I engaged in a recent consensual relationship with an employee, which violated McDonald’s policy,” Mr. Easterbrook, who became the chief executive in March 2015, wrote in an email to McDonald’s employees. “This was a mistake. Given the values of the company, I agree with the board that it is time for me to move on.” Mr. Easterbrook, who became the chief executive in March 2015, wrote an email to McDonald’s employees, saying, “I engaged in a recent consensual relationship with an employee, which violated McDonald’s policy.”
Mr. Easterbrook had been widely credited with turning around McDonald’s after it posted one of its worst financial performances in years, in 2015. He emphasized technological innovation, striking food-delivery deals with the third-party apps Uber Eats and DoorDash and acquiring smaller companies that specialize in machine learning and artificial intelligence. He added, “This was a mistake. Given the values of the company, I agree with the board that it is time for me to move on.”
He will be replaced by Chris Kempczinski, who most recently served as president of McDonald’s USA. The board met on Friday and voted to fire Mr. Easterbrook after an investigation of his relationship with the employee, the company said. A McDonald’s spokeswoman declined to reveal more details about the relationship or to say when the board found out about it.
This is a developing story and will be updated. A spokeswoman for Mr. Easterbrook, Desiree Moore, said he was “deeply grateful” for his time at McDonald’s and “acknowledges his error in judgment.”
Mr. Easterbrook, 52, had been widely credited with turning around McDonald’s after it posted one of its worst financial performances in years, in 2015. He emphasized technological innovation, striking food-delivery deals with the third-party apps Uber Eats and DoorDash and acquiring smaller companies that specialize in machine learning and artificial intelligence. Last year, Mr. Easterbrook was paid more than $15 million.
“There’s no question he’s been a very good C.E.O. during his time there,” said Jonathan Maze, the editor of Restaurant Business, a trade publication.
“He really made that organization a lot leaner, they make decisions a lot more quickly,” Mr. Maze said. “They have gone from a company that was well behind on technology to one that is arguably at the forefront of things like artificial intelligence and delivery.”
The company’s stock price more than doubled during his tenure.
Mr. Easterbrook, who is divorced and has three daughters, will be replaced by Chris Kempczinski, who most recently served as president of McDonald’s USA.
Even as its business performance has improved in recent years, McDonald’s has faced criticism from labor advocates who argue that the chain’s low-wage workers, some of whom make less than $10 an hour, are mistreated and underpaid. Earlier this year, several Democratic presidential candidates joined striking workers demanding a $15 minimum wage, union rights and better protection from sexual harassment.
And as the chain has prioritized delivery and other technological advances, it has experienced occasional friction in its relationship with its franchisees. An advocacy group representing McDonald’s franchisees, the National Owners Association, formed in 2018. A recent survey conducted by the group found that the majority of more than 800 franchisees polled were not satisfied with the economics of online food delivery, in which the third-party apps take a sizable cut of each order.
Franchisees have also expressed concerns about the cost of upgrading restaurants to feature new drive-through technology as well as touch-screen kiosks that allow customers to order without waiting in line at the counter.
As the leader of the fast-food chain’s operations in the United States, Mr. Kempczinski has been at the front line of some of those brewing conflicts. “He’s had something of a controversial relationship with the company’s franchisees,” Mr. Maze said.
Mr. Kempczinski, an avid marathon runner who is married with two children, joined McDonald’s in 2015.