Fast food giant McDonald’s was down around 2.7% on the stock market on Monday after its CEO’s dismissal, announced Sunday, for maintaining a sentimental relationship with an employee.
McDonald’s was today the hardest hit firm in the Dow Jones group of Industrials, which nevertheless had widespread profits and was headed for the record, among a renewed optimism on Wall Street for a possible short-term solution in the U.S.-China trade war.
The company announced on Sunday the dismissal of its CEO, Steve Easterbrook, for violating company policies by maintaining a sentimental relationship with an unidentified employee.
McDonald’s approved Easterbrook’s departure on Friday and the financial details of its compensation are expected to be known as of Monday, with documents being sent to federal authorities.
In place of Easterbrook, McDonald’s board of directors appointed Chris Kempczinski, who recently headed McDonald’s USA, as new president and CEO with immediate effect.
Almost an hour after the opening of the session on the New York Stock Exchange, McDonald’s, which has a capitalization of about 147,000 million dollars, traded 2.69% below Friday’s close, with the share at 188.72 dollars.
The move did not seem to benefit rivals like Restaurant Brands International, the owner of Burger King and Popeye’s, which gave up 0.11%, or Wendy’s, which left 1.09%.
McDonald’s reported at the end of October earnings and quarterly revenues weaker than expected because their promotions failed to drive their customers away from competition in the United States, according to analysts.
During this third quarter, McDonald’s earnings were down 2% to $1,607 million, and revenues were up 1% to $5,430 million.
The value of the firm on the stock exchange has fallen almost 11% in the last month, but since the beginning of the year has risen more than 6%.