Business

McDonald’s CEO Steps Down as Sales Decline

Published

11 years ago

January 29, 2015

In this Jan. 13, 2012, file photo, Don Thompson, McDonalds President and Chief Operating Officer, speaks during a news conference in Innsbruck, Austria. McDonald’s Corp. has tapped Steve Easterbrook as its new president and CEO to succeed Thompson, who has helmed the burger chain about two and a half years, the company announced Wednesday, Jan. 28, 2015. (Kerstin Joensson/AP Images for McDonalds, File)

CANDICE CHOI, AP Food Industry Writer

NEW YORK (AP) — McDonald’s CEO Don Thompson is stepping down as the world’s biggest hamburger chain fights to hold onto customers and transform its image.

The company said Thompson, who has been CEO for two-and-a-half years, will be replaced by Steve Easterbrook, a company veteran who rejoined McDonald’s as its chief brand officer in 2013.

McDonald’s Corp., which has more than 36,000 locations around the world, is struggling amid intensifying competition and changing attitudes about food. Customer traffic at established locations in the U.S. fell 4.1 percent last year, following a 1.6 percent decline in 2013. It’s also trying to recover after a supplier scandal in China that damaged its reputation.

On Wednesday, McDonald’s said Thompson will retire March 1 after nearly 25 years with the company. Thompson, 51, was the first African-American to head the company since it was founded in 1955.

“It’s tough to say goodbye to the McFamily, but there is a time and season for everything,” he said in a statement.

A representative for McDonald’s said an unspecified number of employees at the company’s headquarters in Oak Brook, Illinois and elsewhere were also notified of layoffs on Wednesday. In after-hours trading, shares of McDonald’s jumped 3 percent to $91.79. The stock has declined about 6 percent in the past year while broader markets are up in the double digits.

With Easterbrook’s promotion, McDonald’s is continuing its tradition of promoting from within, noted Darren Tristano, a restaurant industry analyst with Technomic. That could be a drawback for a company that is struggling to keep up with a rapidly changing industry.

“Sometimes, you need fresh perspective,” Tristano said, adding that the competition has been “evolving faster than McDonald’s products have been.”

Despite the pressures McDonald’s is facing, the timing of Thompson’s departure was a bit of a surprise considering the numerous revitalization efforts the company recently announced, said Richard Adams, a consultant for McDonald’s franchisees. And he noted the CEO change leaves open the question of whether McDonald’s will shift course on those initiatives.

“Is everything going to change, or are Don’s plans going forward?” Adams said.

Here’s a look at the challenges Easterbrook, 48, will inherit as McDonald’s new CEO, and the changes that are already under way.

___

FAST FOOD IS JUNK FOOD

McDonald’s is trying to shake perceptions that fast-food is cheap, greasy and made with mysterious ingredients.

To dispel myths about its food, the company recently launched a campaign inviting people to ask frank, sometimes squeamish questions about its menu offerings, such as “Does McDonald’s beef contain worms?” and “Do McDonald’s buns contain the same chemicals used to make yoga mats?”

Part of the problem for McDonald’s and other traditional fast-food chains is that people are gravitating toward food they feel is more wholesome or made with higher quality ingredients. And newer places like Chipotle and Panera are positioning their food as just that.

Mike Andres, president of McDonald’s USA, said last month that the company is looking at shrinking the number of ingredients it uses and employing different cooking procedures to enhance the appeal of its food.

“Why do we need to have preservatives in our food?” Andres asked. “We probably don’t.”

___

BLOATED MENU, CLUMSY SERVICE

McDonald’s has conceded its menu in the U.S. has gotten bloated. In just the past decade, the company has said it added 100 items to its menu. That slows down service because it takes customers longer to figure out what they want, while also complicating kitchen operations.

It also increases the chances that orders will be wrong.

As such, McDonald’s has said it’s looking at a simplified menu that reduces the number of Value Meals, and trims items that may be repetitive, such as variations of the Quarter Pounder with different toppings.

___

PICKIER CUSTOMERS

The ability to customize orders is gaining popularity. At Chipotle, for instance, people like that they can walk down a line and dictate exactly what goes into their bowls and burritos.

In hopes of giving customers more flexibility in adjusting their burgers, McDonald’s rolled out new prep tables that can hold more condiments and toppings. It also has more dramatic plans in the works.

McDonald’s says it will roll out an option that lets people build their own burgers at 2,000 of its more than 14,000 U.S. locations later this year. The food takes a bit longer to prepare, but the company is hoping customers will think it’s worth the wait.

___

PRICES TOO HIGH

A major attraction of McDonald’s is that the food is supposed to be affordable. But prices have gotten a bit high for some people.

The popular Dollar Menu is one reason for the skewed prices. To offset the deals on that menu, McDonald’s has admitted that other parts of the menu got too expensive.

In turn, the company has said that prompted people to “trade down” to the Dollar Menu. And that left many customers associating the McDonald’s brand with its cheapest items.

Affordable food is also more widely available elsewhere, with convenience stores and supermarkets expanding their prepared food and coffee offerings.

____

Follow Candice Choi at www.twitter.com/candicechoi

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Activism

The Ladies of Delta Sigma Theta Hold Day of Advocacy at the Capitol in Sacramento

A member of the “Divine Nine,” Delta Sigma Theta Sorority, Inc., was founded on Jan. 13, 1913, at Howard University in Washington, D.C. The organization was established by 22 women who sought to shift the group’s focus from social activities to public service, academic excellence, and social activism.

Published

1 week ago

May 17, 2026

Oakland Post

Sen. Laura Richardson (D-San Pedro) presents a Senate resolution to the Delta Theta Sigma Sorority Farwest Region at the State Capitol on May 4. Photo courtesy of the Senate Rules Committee.

By Antonio Ray Harvey, California Black Media

On May 4, members of the Farwest Region of Delta Sigma Theta Sorority, Inc., convened at the California State Capitol for the organization’s 23rd annual Delta Days in Sacramento.

The two-day advocacy event brings together chapters from across California to engage directly in the legislative process, connect with lawmakers, and advocate for policies impacting Black communities.

Members of the sorority were honored on the Senate floor by Sen. Laura Richardson (D-San Pedro), who is also a member of Delta Sigma Theta.

Richardson welcomed the Farwest Region during the presentation of a Senate resolution recognizing outgoing Regional Director Kimberly Usher for her leadership and service.

“In addition to the Far West Region, we are led by a fearless leader, regional director Kimberly Usher. She has now served her full term of what’s allowed,” Richardson said. “We are going to be having our regional conference, but we wanted to give it to her here, officially recognizing her service.”

The resolution was co-authored by Richardson and fellow members of the California Legislative Black Caucus (CLBC) and Delta Sigma Theta, Sen. Akilah Weber Pierson (D-San Diego) and Assemblymember Rhodesia Ransom (D-Stockton).

Usher has served in the leadership role since 2022.

“We are founded on sisterhood that is deeply rooted in scholarship, service, and social action,” said Weber Pierson, a member of the Gamma Alpha chapter of Delta Sigma Theta Sorority.

“Today, we continue a legacy of empowering communities and upholding the high cultural, intellectual, and moral standards established by our founders over a century ago,” she added.

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Bay Area

How Is AI Affecting California? The State Wants You to Share Your Story

The program marks the first time the state has opened the platform to all Californians. State officials said the effort is designed to give residents a direct role in discussions about how AI should be regulated and used as the technology rapidly expands across industries.

Published

1 week ago

May 17, 2026

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By Bo Tefu, California Black Media

Gov. Gavin Newsom announced May 7 that California is expanding its Engaged California digital democracy initiative statewide, inviting residents to help shape future state policies on artificial intelligence (AI) and its impact on jobs and the economy.

“We’ve got to be clear-eyed about this moment: AI is moving fast, bringing enormous opportunity, but also real risks,” Newsom said in a statement. “Californians deserve a seat at the table as we shape what’s to come.”

The initiative will roll out in two phases. Beginning immediately, Californians can sign up online to share how AI is affecting their work and communities and provide ideas for possible government action. Later this summer, a smaller group reflecting the state’s workforce demographics will participate in live discussions focused on developing policy recommendations.

State officials said the goal is to identify areas of agreement among Californians and provide policymakers with public feedback as the state develops future AI regulations and workforce strategies.

Engaged California is modeled after digital democracy programs used in Taiwan and is intended to encourage structured public discussion rather than social media-style debate. Officials described the effort as a form of “deliberative democracy” aimed at helping residents engage directly in state decision-making.

“The more Californians are engaged in the democratic process, the better able we’ll be to confront the challenges we face together,” said Nick Maduros, California Secretary of Government Operations, in a statement.

The statewide launch builds on two earlier pilot programs. One pilot gathered public input following the Los Angeles firestorms to help guide recovery efforts, while another collected ideas from state employees about improving government operations.

California has positioned itself as a national leader in AI policy and development. Since 2023, the Newsom administration has introduced initiatives focused on responsible AI use in government, cybersecurity protections, workforce training and regulations targeting risks such as deepfakes and AI-generated robocalls.

The state has also partnered with companies in Silicon Valley — including NVIDIA, Google, Adobe, IBM and Microsoft — to expand AI education and workforce training programs across California schools and universities.

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Advice

Book Review: Books for College-Bound Students

The kind of workday your Grandpa had is probably over, and you can’t count on toiling at the same place for 40 years for a pension and a gold watch. You already know that, and these books will help you decide your next step. You’ll learn what kind of worker you are, what’s stopping you from finding a job or occupation you’ll love, how to determine the purpose you envision for your future, and how to get where you need to be.

Published

1 week ago

May 17, 2026

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Book covers. Photo courtesy of Terri Schlichenmeyer.

By Terri Schlichenmeyer

Authors: Various, Copyright: c.2026, Publishers: Various, SRP: $21.00 – $29.00, Page Counts: Various

The videos and news reports were inspiring.

In them, a hesitant prospective college student became a happy, new college-bound student with the click of a key. They were accepted into the college of their dreams – so how can you get the same feeling next spring, when you’re the one with the highest of hopes?

You can start by reading these great books and sharing them with your family…

You probably already know that getting into the college of your choice is not something you do last-minute. In “The People’s Guide to College Applications: A Week-by-Week Approach to Writing, Connecting, and Getting in” (Prometheus Books, $ 21.95), Jill Constantino takes you through each step, but not in a frantic way. There’s no pressure here, just easy-to-grasp, makes-sense methods to apply for the college you want. There are reminders here, things you can’t forget and things you can, hints on asking for referrals and writing essays, and plenty of reminders to take a deep breath. Bonus: it’s also a book for parents, who may feel just as much pressure as their child does.

Okay, but let’s say that you’re an adult, a parent who’s sweating those college applications, classes, and the FAFSA for yourself, ugh! Then you’ll want to read “Student Parent: The Fight for Families, the Cost of Poverty, and the Power of College” by Nicole Lynn Lewis (Beacon Press, $26.97). an urgent call meant for nontraditional students who are also Black, Latinx, gay, Moms, or Dads.

Inside this book, you’ll find stats and stories that may already sound familiar, tales of not enough money, not enough support, not enough arms or sleep or resources. If you’re looking for a book of advice, this isn’t it, though. It’s more of a resource that you’ll want to take to your guidance counselor or any local politician.

Alright, but what if you’ve decided that college can wait? Is that okay? Look for “The Mission Generation: Reclaim Your Purpose, Rewrite Success, Rebuild Our Future” by Arun Gupta and Thomas J. Fewer (Wiley, $29.00) because – guess what? – you have many options for your future.

The kind of workday your Grandpa had is probably over, and you can’t count on toiling at the same place for 40 years for a pension and a gold watch. You already know that, and this book will help you decide your next step. You’ll learn what kind of worker you are, what’s stopping you from finding a job or occupation you’ll love, how to determine the purpose you envision for your future, and how to get where you need to be. This book isn’t just for high schoolers, but for anyone ages 16 and beyond who’s feeling restless, ready for change, or who’s thinking about some kind of purposeful retirement.

And if these aren’t the college-based or not-college-bound books you need, then be sure to ask your favorite bookseller or librarian for help on ideas, how-to’s, test prep books, or study guides. They’ll have books for you, and maybe a little inspiration, too.