(MENAFN- Baystreet.ca) McDonald's (NYSE:MCD) said Sunday that it has fired Chief Executive Steve Easterbrook for violating company policy by having a consensual relationship with an employee.
The Chicago–based fast-food behemoth 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 alleged incident. The company said Easterbrook would be replaced by USA President Chris Kempczinski, 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."
The 52-year-old Easterbrook 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. They began Monday down $4.09, 2.1%, to $189.85
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.
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