- News>
- Companies & Commodities
McDonald`s names new president
Oak Brook, Illinois, Apr 20: McDonald named Charlie Bell to take over as president and chief executive of the fast-food giant following the death of Jim Cantalupo earlier in the day.
Oak Brook, Illinois, Apr 20: McDonald named Charlie Bell to take over as president and chief executive of the fast-food giant following the death of Jim Cantalupo earlier in the day.
The board also announced that Andrew McKenna, the board's presiding director, has been elected non-executive chairman of the board. The moves came after Cantalupo died suddenly of an apparent heart attack.
"Perhaps the greatest legacy that Jim Cantalupo left to our McDonald's system is the talent and commitment of the senior management team he assembled," the company's board said in a statement.
"We can never replace Jim's brilliance or leadership, but we will honor him by continuing his passion for McDonald's. Charlie Bell has worked side by side with Jim during these past 16 months to revitalize McDonald's all over the world. He is ideally suited and prepared to continue Jim's remarkable focus and discipline on our business."
Cantalupo, a former vice chairman and president of the company, was brought back to lead McDonald's in January 2003 when the company was struggling to cope with falling profit in a saturated hamburger market, outbreaks of mad cow disease and poor service.
The news sent the stock of the Oak Brook, Illinois, company down 3 percent in pre-market trading, and was seen pulling the Dow Jones industrial average lower at the start of trading.
Cantalupo, was brought back to lead McDonald's in January 2003, when the company was struggling to cope with falling profit in a saturated hamburger market, outbreaks of mad cow disease and poor service.
In little over a year, he had helped turn the company around with a focus on improving operations and menu offerings. New items like entree-sized salads and all-white-meat chicken nuggets helped McDonald's post the highest sales gain in 30 years at US restaurants open more than a year in February.
"The worries are that perhaps there may not be a strong No. 2, since he was known as the one with the strong vision," said Art Hogan, chief market analyst for investment adviser Jefferies & Co. "In the short term, when you have a turnaround focused on one person, there will be a short-term disappointment" in the stock.
McDonald's shares fell to $26.60 on the INET electronic brokerage in pre-market trade from their close of $27.46 on Friday on the New York Stock Exchange. Since the beginning of 2004, McDonald's shares are up 10.6 percent, the second best performer in the Dow Jones industrial average. In March 2003, the shares had fallen to a 10-year low of $12.45.
Cantalupo, with his experience running its far-flung international operations, was brought back at a time when McDonald's was struggling to cope with falling profits in a saturated hamburger market, the impact from outbreaks of mad cow disease in key markets such as Europe and Japan, and poor service.
In little over a year, he helped standardize service in US stores, expand the menu with entree-sized salads and all-white-meat Chicken McNuggets, and launch the company's first unified global marketing campaign.
In February, sales growth at US restaurants opens more than a year rose to their highest level in 30 years.
Since the beginning of 2004, McDonald's shares are up 10.6 percent, the second best performer in the Dow Jones industrial average. In March 2003, the shares had fallen to a 10-year low of $12.45.
Bureau Report
The board also announced that Andrew McKenna, the board's presiding director, has been elected non-executive chairman of the board. The moves came after Cantalupo died suddenly of an apparent heart attack.
"Perhaps the greatest legacy that Jim Cantalupo left to our McDonald's system is the talent and commitment of the senior management team he assembled," the company's board said in a statement.
"We can never replace Jim's brilliance or leadership, but we will honor him by continuing his passion for McDonald's. Charlie Bell has worked side by side with Jim during these past 16 months to revitalize McDonald's all over the world. He is ideally suited and prepared to continue Jim's remarkable focus and discipline on our business."
Cantalupo, a former vice chairman and president of the company, was brought back to lead McDonald's in January 2003 when the company was struggling to cope with falling profit in a saturated hamburger market, outbreaks of mad cow disease and poor service.
The news sent the stock of the Oak Brook, Illinois, company down 3 percent in pre-market trading, and was seen pulling the Dow Jones industrial average lower at the start of trading.
Cantalupo, was brought back to lead McDonald's in January 2003, when the company was struggling to cope with falling profit in a saturated hamburger market, outbreaks of mad cow disease and poor service.
In little over a year, he had helped turn the company around with a focus on improving operations and menu offerings. New items like entree-sized salads and all-white-meat chicken nuggets helped McDonald's post the highest sales gain in 30 years at US restaurants open more than a year in February.
"The worries are that perhaps there may not be a strong No. 2, since he was known as the one with the strong vision," said Art Hogan, chief market analyst for investment adviser Jefferies & Co. "In the short term, when you have a turnaround focused on one person, there will be a short-term disappointment" in the stock.
McDonald's shares fell to $26.60 on the INET electronic brokerage in pre-market trade from their close of $27.46 on Friday on the New York Stock Exchange. Since the beginning of 2004, McDonald's shares are up 10.6 percent, the second best performer in the Dow Jones industrial average. In March 2003, the shares had fallen to a 10-year low of $12.45.
Cantalupo, with his experience running its far-flung international operations, was brought back at a time when McDonald's was struggling to cope with falling profits in a saturated hamburger market, the impact from outbreaks of mad cow disease in key markets such as Europe and Japan, and poor service.
In little over a year, he helped standardize service in US stores, expand the menu with entree-sized salads and all-white-meat Chicken McNuggets, and launch the company's first unified global marketing campaign.
In February, sales growth at US restaurants opens more than a year rose to their highest level in 30 years.
Since the beginning of 2004, McDonald's shares are up 10.6 percent, the second best performer in the Dow Jones industrial average. In March 2003, the shares had fallen to a 10-year low of $12.45.
Bureau Report