McDonald's CEO to Retire

By Dustin M Braden - 28 Jan '15 18:35PM

The current CEO of McDonald's is set to resign after nearly 25 years with the international fast food company.

In a press release, McDonald's announced that Don Thompson would retire March 1. Thompson will be replaced by Steve Easterbrook.

Thompson said. "It's tough to say goodbye to the McFamily, but there is a time and season for everything. I am truly confident as I pass the reins over to Steve, that he will continue to move our business and brand forward."

Andrew McKenna, non-executive Chairman of the Board of Directors said of Thompson, "On behalf of the Board I sincerely thank Don for his valuable contributions and outstanding service throughout his career at McDonald's. We will be indebted for his passionate leadership, business acumen, dedication and system knowledge."

Easterbrook was previously the head of McDonald's United Kingdom and European operations. In his previous position, he was responsible for marketing and menu changes.

Easterbrook will be expected to help adjust McDonald's menu and image at a time it is losing market share to competitors due to changing consumer habits that have an emphasis on freshness and natural products. In this vein, the company recently announced that they will stop serving some menu items and allow people to build their own burgers. McDonald's has also released a series of YouTube videos with the intention of removing some of the mystery around their products' preparation.

CNBC reports that investors were excited about the change in McDonald's leadership. The value of McDonald's stock rose by 3 percent after the news of Thompson's retirement broke. McDonald's is a favorite of investors because it regularly pays out dividends.

The resignation of Thompson also sets back efforts at diversifying the top tiers of major corporations. Thompson was one of the few black CEOs at the top of a major US corporation.