McDonald's (NYSE:MCD) new president and CEO Steve Easterbrook has announced the initial steps of the company's new turnaround plan, which include the restructuring of global operations and an intended resurgence in excitement about the brand.
"Today we are announcing the initial steps to reset and turn around our business," Easterbrook said. "As we look to shape McDonald's future as a modern, progressive burger company, our priorities are threefold—driving operational growth, returning excitement to our brand and unlocking financial value."
Easterbrook has restructured the organization and ownership mix to provide greater focus on the customer, improve operational fundamentals and recommit to the quality of McDonald's restaurants.
Easterbrook joined McDonald's at the start of 2015 amid a host of key management changes that included the retirement of former President and CEO Don Thompson.
Beginning July 1, the company will be segmented into four focal markets: First, the U.S. market, accounting for more than 40 percent of McDonald's operating income; second, the international lead markets, which include Australia, Canada, France, Germany and the U.K. and collectively represent another 40 percent of McDonald's operating income; third, high-growth markets with expansion potential, such as China, Italy, Poland, Russia, South Korea, Spain, Switzerland and the Netherlands, that comprise 10 percent of the company's operating income; and fourth, foundational markets with the potential to operate under "a largely franchised model."
"Our new organization creates a structure under which leadership of McDonald's new segments will be able to more effectively address the common needs of their markets and customers," Easterbrook said.
Mike Andres will continue to serve as President of McDonald's U.S. Doug Goare, current president of McDonald's Europe, will become president of international lead markets. Dave Hoffmann, current president of Asia/Pacific, Middle East and Africa (APMEA), will become president of high-growth markets. And Ian Borden, current CFO of McDonald's APMEA, will become president of foundational markets.
-See this McDonald's press release
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