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McDonald’s revamps leadership into four segments to revive sales

4 May 2015 17:10 (UTC+04:00)
McDonald’s revamps leadership into four segments to revive sales

By Bloomberg

McDonald’s Corp. Chief Executive Officer Steve Easterbrook is restructuring the restaurant chain into four segments, saying the key to snapping its sales slump is improving operations at the store and company levels.

The company will be divided into the U.S., International Lead Markets, High-Growth Markets and Foundational Markets, Easterbrook said in a video released by the Oak Brook, Illinois- based company Monday. Easterbrook is scheduled to hold a call with investors later this morning.

McDonald’s is trying to stem an exodus of customers seeking higher-quality food at chains like Chipotle or cheaper fare at traditional rivals such as Burger King and Wendy’s. Easterbrook, a company veteran, took over McDonald’s in March after the company’s worst sales slump in more than a decade forced his predecessor from the job.

“Our turnaround will be grounded in operations excellence and running great restaurants,” Easterbrook said in the presentation.

Mike Andres will lead the U.S. segment, while Doug Goare will be president of International Lead Markets, which comprises Australia, Canada, France, the U.K. and Germany. Dave Hoffmann will lead the High-Growth Markets unit, which includes China, Italy, Poland and Russia, among others. Ian Borden will be president of the Foundational Markets group, which includes about 100 countries.

McDonald’s shares were little changed at $97.90 at 8:17 a.m. in early trading in New York. The shares had gained 4.4 percent this year through the close of trading Friday.

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