McDonald’s Corporation (NYSE:MCD) has fired Chief Executive Steve Easterbrook for violating company policy by having a consensual relationship with an employee
McDonald’s said Sunday that it has fired Chief Executive Steve Easterbrook for violating company policy by having a consensual relationship with an employee.
The company said in a release that the board determined Easterbrook “demonstrated poor judgment” by engaging in the relationship.
McDonald’s did not provide other details on the relationship. The company said Easterbrook would be replaced by USA President Chris Kempczinski, 51, effective immediately.
“This was a mistake,” Easterbrook wrote in an email to employees. “Given the values of the company, I agree with the board that it is time for me to move on.”
Easterbrook, 52, became CEO of McDonald’s in 2015. Before then, he was chief brand officer of McDonald’s and its former head in the U.K. and northern Europe.
Working closely with Kempczinski, Easterbrook oversaw a turnaround of the company. McDonald’s shares have risen 96% to $193.94 since Easterbrook took over as CEO in 2015.
“I am excited to take the reins of this incredible company and grateful for the Board’s confidence in me,” Kempczinski wrote in an email to employees. “I am particularly fortunate to be surrounded by such a talented team as we take this brand into the future.”
Joe Erlinger, president of the international operated markets, will take over as head of McDonald’s U.S. division, overseeing the chain’s 14,000 restaurants in its domestic market. Prior to his current role, Erlinger led McDonald’s high growth markets division.
Under Easterbrook, the company sold off many of its company-owned stores to franchisees. More than 90% of McDonald’s locations are now owned by franchisees. The refranchising strategy helps McDonald’s profits but has led to falling revenues as a result of accounting differences.
In the early days of the turnaround, value meals and the launch of all-day breakfast lifted sales and traffic. But the company’s third-quarter earnings fell short of estimates for the first time in two years, as its latest batch of promotions failed to gain traction with U.S. consumers.
Under Easterbrook and Kempczinski’s leadership, McDonald’s has been renovating U.S. restaurants with upgrades like self-order kiosks and digital menu boards. The fast-food chain has struggled in the U.S. in recent years with declining traffic, but technology upgrades often lead customers to spend more.
However, U.S. franchisees have balked at the expensive renovations, leading them to create an independent franchisee group last year.
The company has also come under fire from its workers for how it handles sexual harassment in its restaurants.
“It’s clear McDonald’s culture is rotten from top to bottom,” Fight for $15 and a Union, a fast-food workers’ rights group, said in a statement. ”… The company needs to be completely transparent about Easterbrook’s firing and any other executive departures related to these issues.”
Fight for $15 has filed several dozen complaints on behalf of McDonald’s employees against the Chicago-based company.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 204.11.
The projected upper bound is: 201.59.
The projected lower bound is: 185.27.
The projected closing price is: 193.43.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 62.1363. This is not an overbought or oversold reading. The last signal was a buy 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 33.17. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 2 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -63. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 13 period(s) ago.
Rex Takasugi – TD Profile
MCDONALD’S CORP closed down -2.760 at 193.940. Volume was 29% above average (neutral) and Bollinger Bands were 137% wider than normal.
Open High Low Close Volume___
197.780 197.780 193.740 193.940 1,188,341
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 197.09 209.33 200.08
Volatility: 35 25 19
Volume: 1,289,698 1,030,456 870,672
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
MCDONALD’S CORP is currently 3.1% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of MCD.N (mildly bearish). Our trend forecasting oscillators are currently bearish on MCD.N and have had this outlook for the last 38 periods.