McDonald's Names New President In US Amid Sales Funk
Mia Lindog | | Aug 23, 2014 03:05 AM EDT |
In a move deemed to help reverse its flagging sales in the country, the American fast food giant McDonald's Corp. named a new president for its flagship U.S. chain.
Mike Andres, 56,will take over the position of Jeff Stratton, 58, who is retiring on Oct 15 after two years as president and 41 years overall with McDonald's. It was the second time McDonald's will have a new president in two years.
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Anders was formerly the chairman and CEO of Logan's Roadhouse, a chain with 261 full-service restaurants in 23 states, but worked in McDonald's for 30 years prior to that. Andres started his career at the Golden Arches as manager of his family-owned McDonald's in northern California. He moved up the ranks to become president and CEO of Boston Market, then a McDonald's subsidiary, and president of McDonald's central U.S. division, the company said.
Reuters reported that the change comes as McDonalds has suffered through flat or declining monthly sales at its U.S. stores since November. Analysts interviewed by the newswire attributed the company's poor performance to its slower service from bloated menus and intensified competition from resurgent rivals, such as Wendy's Co. and Burger King Worldwide Inc.
Reuters said that Andres hiring puts added pressure on CEO Don Thompson to hasten the sales rebound of McDonald's. The report said it was rare for McDonald's to pick an outsider to lead its U.S. business, with Hedgeye Risk Management analyst Howard Penney telling Reuters that it was a "desperate" move.
The newswire added that since Thompson took over in July 2012, results have been disappointing with sales hurt not just by competition but also internal errors and cautious spending by lower-income consumers.
Thompson has promised to get McDonald's back to basics, as franchisees, investors, and analysts call for simplification of menus. Reuters said that the McDonald's CEO has invested on kitchen equipment for diners to customize hamburgers, but critics have yet to warm up to the innovation.
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