After just under 3 years, Don Thompson moves on
McDonalds announced today that Don Thompson, who took the CEO reigns in July of 2012 and has worked at McDonalds for a quarter-century, is stepping down. His replacement, Steve Easterbrook, will assume his new CEO position on March 1. Easterbrook will be the first Briton CEO in McDonalds’ history.
Thompson was just one of 6 current Black CEOs of Fortune 500 companies, and his short-term tenure may be due to the recent reports of disappointing decreases in McDonalds’ revenue. Since Thompson took over in July of 2012, McDonalds’ same-store sales growth chart in the United States has shown significant signs that the world renowned fast food chain is in need of a boost in the very country in which it began. Save a few marginal fluctuations, the decrease has been steady from the 1st quarter of 2012 to the final months of 2014.
Many are chalking up McDonalds’ recent struggles to complicated internal issues that include the revamping of their menu, and their ongoing labor issues, but some are also pointing to the fact that the competition is becoming increasingly stiff. A relatively new wave of “fast-casual” eateries such as Shake Shack, Five Guys, Chipotle and others are becoming increasingly popular, and are challenging McDonalds’ dominance.
McDonalds does however, have a few bright spots to point to. They’re very aware of their competition, and have taken imperative steps in recent years to help make the McD’s experience more personable. From their advertising campaigns to the addition of slightly more sophisticated ingredients, there’s certainly a shift in the thinking at the golden french fry mecca. It should also be noted that the “fast-casual” restaurants that have emerged as powerhouses in the last half-decade all boast menus significantly pricier than that of Mickey D’s. The same amount of food in a #2 at McDonalds could cost an additional $10 at any one of the aforementioned “fast-casual” eateries. One thing’s for sure, it will be very difficult for any chain to dethrone the house that Ronald built.
