Change of Guard at McDonald's - Is Turnaround Possible?


Code : COS0113

Year :

Case Length : 11pages

Industry :Fast Food Industry

Organization:McDonald’s Corporation

Period : 2004-2015

Region :

Teaching Note: Available

Structured Assignment : Not Available

Countries : United States

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Introduction: The start of 2015 witnessed a major change at the helm in McDonald’s Corporation (MCD) with Don Thompson (Thompson) stepping down from the CEO post. Thompson was succeeded by Steve Easterbrook (Easterbrook), who had earlier been MCD’s Global Chief Brand Officer. This move came at a time when MCD was struggling to retain its market share. The company reported a decline in its sales by 7% and profit margins by 15% for the year 2014 . In the previous couple of years, MCD had faced many challenges regarding its menu management and service quality and hygiene and regulatory issues. With Easterbrook, who had turned the McDonald’s brand around in the United Kingdom (UK), taking charge, the market and MCD investors were keeping their fingers crossed that he would be able to achieve a similar feat at McDonald’s in the US. The stock price of MCD rose 3% on the day of announcement of change in leadership.

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