To ward off the scandal over its CEO’s consensual relationship with an employee, fast food restaurant chain business McDonald’s announced late last weekend that it has fired CEO Steve Easterbrook for violation of company policy. Elaborating on the matter the firm in a press release stated that as Easterbrook had demonstrated poor judgment by engaging in the relationship the board determined his immediate release from company duties. Without revealing any more details about the relationship the firm also announced that Easterbrook’s responsibilities would be taken over by USA president Chris Kempczinskiimmediately. In a mail to company employees Easterbrook stated that his actions were a mistake as a mark of respect for board decision and company values he would step down. He was appointed as CEO in 2015 and before that he was working as McDonald’s chief brand officer and head of Northern Europe and UK.
Working in close partnership with Kempczinski, Easterbrook helped to turn around McDonald and since then the firm’s shares have risen by 96 percent to $193.94 ever since Easterbrook took over as CEO. After the announcement Kempczinski wrote in an email to employees that he was grateful for Board’s confidence and delighted to take over the reins of the company and looking forward to working with the talented team. President of international operated markets Joe Erlinger would be taking over charge of US division of McDonald and would oversee functions of the firm’s 14000 restaurants in domestic circuit. During Easterbrook’s leadership McDonald’s sold away many of its company owned restaurants to franchisees and now 90 percent of its outlets are owned by franchisees. Though the strategy has helped increase the firm’s profits it has led to sharp fall in its revenues due to accounting differences. During early days of the turnaround Mc.Donald’s new value menu and all day breakfast items increased sales but its third quarter earnings fell below estimates.