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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Oakland Post: Week of July 1 – 7, 2026

The printed Weekly Edition of the Oakland Post: Week of July 1 – 7, 2026

Published

4 days ago

July 5, 2026

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Arts and Culture

Prescott Circus Theatre Presents Free Summer Performance Series

Now in its 41st year, the Prescott Circus Theatre is a nationally recognized performing arts education program for Oakland youth. The circus offers safe environments that challenge Oakland youth, through circus arts training, to develop the skills and confidence to thrive on stage, in school, and in life.

Published

2 weeks ago

June 26, 2026

Oakland Post

Prescott Circus showcase pathways pyramid. Photo courtesy of Prescott Circus.

By Post Staff

The Prescott Circus, Oakland’s longest-running youth circus, is returning this summer with its free shows. Join the Prescott Circus’s young stars as they share their joys and talents through stilt-dancing, tumbling, juggling, and more.

At the heart of this one-hour show, which demonstrates teamwork, pride, and joy, are Oakland Unified School District students ages 8 – 17 from more than 10 different schools

This is accomplished through no-cost school and community programs for more than 300 Oakland youth each year. Performing company members from Prescott, where the program began, perform and make appearances at as many as 40 Bay Area events each year.

The summer program is funded in part by Oakland Fund for Children and Youth, California Arts Council, Port of Oakland, and the West Davis & Bergard Foundation.

Performances will be held Tuesday, July 14, 11 a.m. and 1:30 p.m. (ASL interpreted) and Wednesday, July 15, 11 a.m., at the Malonga Casquelourd Center for the Arts, 1428 Alice St., Oakland. For free reservations go to

https://PrescottCircusSummerShows.eventbrite.com

For group reservations for camps, childcare centers, senior centers, go to www.prescottcircus.org

A community show will be held Saturday, July 18, 2 p.m. to 3 p.m., at DeFremery Park,1651 Adeline St., Oakland.

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NPRC Joins National Grand Jury Proceedings Seeking Accountability, Constitutional Restoration

Organizers state that testimony will explore historical and political developments that they believe have contributed to the expansion of corporate influence over public institutions and governmental decision-making. Participants are expected to discuss concerns regarding constitutional governance, individual liberties, property rights, and the protection of vulnerable populations, including seniors and persons with disabilities.

Published

2 weeks ago

June 26, 2026

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Photo by Billie Powers.

Special to The Post

The National Probate Reform Coalition (NPRC) has joined Toll and Roll and a growing coalition of advocacy organizations, victims, whistleblowers, and citizen groups in support of a nationally broadcast People’s Grand Jury proceeding scheduled for July 1 and July 7.

Organizers describe the event as a public forum designed to examine allegations of government abuse, judicial misconduct, legislative failures, and the erosion of constitutional protections affecting millions of Americans.

The proceedings will feature testimony from victims, families, advocates, and organizations from across the country who contend they have experienced harm through government actions, institutional neglect, and failures of oversight.

According to organizers, the People’s Grand Jury will focus on concerns involving probate courts, guardianships, conservatorships, child welfare systems, property rights, civil liberties, and what participants view as a growing disconnect between government institutions and the constitutional rights of the people they are sworn to serve.

NPRC is participating because many of the issues being examined mirror the concerns raised by advocates, victims, and families who have participated in its monthly town halls. For years, families have reported cases involving exploitation of elders, questionable guardianships, estate depletion, denial of due process, and a lack of meaningful oversight within probate court systems.

“This proceeding gives victims and advocates an opportunity to place their experiences on the public record,” said Tanya Dennis, lead facilitator of NPRC. “For too long, families have struggled to have their voices heard regarding elder abuse, probate exploitation, and government inaction. This forum allows those stories to be shared before a national audience.”

In keeping with principles of transparency and fairness, invitations have been extended to legislators, members of the judiciary, law enforcement representatives, and other public officials who may wish to respond to concerns raised during the proceedings or defend actions taken by their respective institutions.

One of the primary outcomes sought by organizers is public consideration and support for the People’s Remedy and Restoration Act, a proposed legislative framework that advocates believe would strengthen oversight, increase accountability, provide remedies for victims of governmental abuse, and restore constitutional protections.

The proceedings are expected to be broadcast nationally, providing citizens throughout the United States an opportunity to observe testimony, review evidence presented, and participate in an ongoing conversation regarding government accountability and the protection of individual rights.

Advocates hope the hearings will encourage meaningful dialogue, legislative reform, and renewed public engagement in the democratic process.

Individuals, organizations, public officials, and members of the media interested in attending or obtaining access information may contact the organizers at tollandroll2025@gmail.com.

As Americans continue to debate the future of constitutional governance, judicial accountability, and the protection of vulnerable citizens, the July proceedings are expected to serve as a significant forum for public testimony and civic engagement. For more information, go to https://tollandroll.com