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Restaurant industry

McDonald's CEO Change Amidst Domestic Competition

Strategic Insights

— 2 min read

As the world's largest fast-food chain, McDonald's is facing tough competition in the domestic market. In a move to stay ahead, the company has replaced its chief executive. Jack M. Greenberg, 55, has taken over as domestic chief executive, replacing Michael Quinlan, who will remain chairman of the Oak Brook-based chain. Greenberg, who has been with McDonald's since 1982, brings a wealth of operational experience to the role.

Key Takeaways:

  • McDonald's has replaced its chief executive, Jack M. Greenberg, in a bid to stay ahead in the domestic market.
  • Greenberg, 55, has been with McDonald's since 1982 and brings extensive operational experience to the role.
  • Michael Quinlan, 53, will remain chairman of the Oak Brook-based chain.
  • Earnings have been impacted by the company's decision to depreciate the value of telecommunications network equipment, with MCI Communications Corp. reporting a 66% decline in profit.
  • Revenues rose 8.3% to $5.3 billion at MCI Communications Corp. in the three months ended March 31.
  • McDonald's CEO change comes amidst a changing of the guard in a bid to revitalize the company's image and stay ahead in a competitive market.
  • Greenberg will lead the domestic operations of McDonald's, one of the largest fast-food chains in the world.
  • Michael Quinlan will continue to serve as chairman of McDonald's, providing strategic guidance to the company.
  • Earnings for Galey & Lord saw a significant increase, with second-quarter earnings reaching $4.1 million or 34 cents per diluted share.
  • The company has been impacted by financing costs associated with the acquisition of former Dominion Textile apparel operations.
  • Galey & Lord also reported a loss from foreign currency hedges related to the acquisition during the six-month period.
  • Laboratory Corporation of America reported a first-quarter net loss of $1.8 million, compared to a net gain of $2.4 million the same 1997 period.

Statistics:

  • McDonald's CEO change was announced amidst domestic competition in the fast-food market.
  • Greenberg, 55, has been with McDonald's since 1982 and has extensive operational experience.
  • MCI Communications Corp. reported a 66% decline in profit after depreciating the value of telecommunications network equipment.
  • Revenues at MCI Communications Corp. rose 8.3% to $5.3 billion in the three months ended March 31.
  • Galey & Lord reported second-quarter earnings of $4.1 million or 34 cents per diluted share, up from $3.8 million or 32 cents per diluted share in the previous fiscal year.
  • Galey & Lord also reported six-month earnings of $3.5 million or 29 cents per diluted share, down from $7.3 million or 61 cents per diluted share in the previous fiscal year.

Sources:

  • McDonald's Corp.
  • MCI Communications Corp.
  • Galey & Lord
  • Laboratory Corporation of America
  • Bloomberg News
  • Chicago Tribune
  • Wall Street Journal

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