McDonald's shares slipped Monday morning after the company parted Sunday with CEO Steve Easterbrook about an inappropriate relationship with an employee.
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The fast food chain said Easterbrook “violated the company's policy and demonstrated poor judgment involving a recent consensus relationship with an employee. ”
Chris Kempczinski, President of McDonald's United States, was named CEO and President. He was also elected to McDonald's board.
Easterbrook became McDonald's CEO in March 2015 after the company had one of the worst financial quarters this year. He was instrumental in the company's turnaround, emphasizing a technological shift that included delivering from third parties through apps and installing kiosks that allowed customers to customize orders.
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"While basic elements are solid (no more visible than last week's earnings results), changes in this magnitude have tends to be disruptive, "Piper Jaffray analysts in Minneapolis wrote Monday morning. They downgraded the shares to neutral and cut their price target from $ 224 to $ 195 – less than 1 percent above where the shares settled on Friday.
The analysts say the risk associated with the transition is "potentially short-lived," as Kempczinski was "instrumental in orchestrating current (and good results) strategies in addition to having global CPG experience."
October 22, McDonald & # 39; quarterly results falling below Wall Street estimates for the first time in two years, the company made a profit of $ 1.6 billion, or $ 2.11 per share, flat from the year before. , 8 percent from a year earlier, and lacked the 5.2 percent expected.
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McDonald's shares were up 9.2 percent this year, getting 96 percent under Easterbrook's leadership.
FOX Business & # 39; James Leggate contributed to this report.