McDonald’s Corporation is a global fast food chain that serves more than 70 million customers in 119 countries employing about 200,000 people. McDonald’s operates two types of restaurants – company-owned and franchised restaurants with about 93% of restaurants belonging to the latter category (Annual Report, 2021) McDonald’s had disappointing financial results in 2014 with a sales growth of only 1% and a decline of operating income of 8%. Steve Easterbrook, McDonald’s Chief Brand Officer was promoted as the new CEO and President effective from March 1, 2015 to turn around the business. The list of major changes introduced by Steve Easterbrook includes reducing the use of antibiotics in chicken and massively restructuring the corporation, along with introducing changes in the menu. The turnaround efforts of the new CEO Steve Easterbrook proved to be effective with the company shares hitting record by the third quarter of 2015. However, Mr. Easterbrook was fired in 2019 due to breaching McDonald’s employee code of conduct through engaging in consent sexual relationship with female employees. New President and CEO Mr. Chris Kempczinski has proved to be effective so far, with McDonald’s emerging from COVID-19 pandemic stronger than before. In 2021, global comparable sales increased 17.0%, primarily due to strong sales performance across all segments from continued execution of the Accelerating the Arches strategy, as well as recovery from the impact of COVID-19 in the prior year. In 2021 consolidated revenues increased 21% (18% in constant currencies) to USD23.2 billion. At the same time, the fast food giant has certain weaknesses as well. These include the menu still consisting of primarily unhealthy food and the declining brand image of McDonald’s. Furthermore, the fast food chain has very high employee turnover and the company has attracted increasing negative publicity in the past few years. McDonald’s Corporation Report…McDonald’s Corporation Report
Sunday, June 19, 2022
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McDonald’s Corporation is a global fast food chain that serves more than 70 million customers in 119 countries employing about 200,000 people. McDonald’s operates two types of restaurants – company-owned and franchised restaurants with about 93% of restaurants belonging to the latter category (Annual Report, 2021) McDonald’s had disappointing financial results in 2014 with a sales growth of only 1% and a decline of operating income of 8%. Steve Easterbrook, McDonald’s Chief Brand Officer was promoted as the new CEO and President effective from March 1, 2015 to turn around the business. The list of major changes introduced by Steve Easterbrook includes reducing the use of antibiotics in chicken and massively restructuring the corporation, along with introducing changes in the menu. The turnaround efforts of the new CEO Steve Easterbrook proved to be effective with the company shares hitting record by the third quarter of 2015. However, Mr. Easterbrook was fired in 2019 due to breaching McDonald’s employee code of conduct through engaging in consent sexual relationship with female employees. New President and CEO Mr. Chris Kempczinski has proved to be effective so far, with McDonald’s emerging from COVID-19 pandemic stronger than before. In 2021, global comparable sales increased 17.0%, primarily due to strong sales performance across all segments from continued execution of the Accelerating the Arches strategy, as well as recovery from the impact of COVID-19 in the prior year. In 2021 consolidated revenues increased 21% (18% in constant currencies) to USD23.2 billion. At the same time, the fast food giant has certain weaknesses as well. These include the menu still consisting of primarily unhealthy food and the declining brand image of McDonald’s. Furthermore, the fast food chain has very high employee turnover and the company has attracted increasing negative publicity in the past few years. McDonald’s Corporation Report…
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