McDonald's Franchisees Could Revolt Against New CEO
Steve Easterbrook, largely credited with whipping fast food behemoth McDonald's (NYSE: MCD) back into shape since taking over as CEO in 2015, is out. Easterbrook was terminated for violating company policy by developing a relationship with a fellow employee. He'll be replaced by Chris Kempczinski, president of McDonald's USA, effective immediately.
It's an unfortunate but understandable decision. In an era of heightened awareness of inappropriate conduct, corporate boards must exercise great care in defending a company from any form of liability. Easterbrook even publicly agreed with the board of directors' decision.
The new CEO, however, may be inheriting a network of restaurants owned by franchisees becoming increasingly frustrated with the parent company's decisions. Franchisees may see the newcomer's ascension as an opportunity to force disruptive and costly change.
Source Fool.com
