Posted on 02/13/2015 7:54:45 PM PST by rickmichaels
CtW has called on McDonald’s to remake its board, saying directors of the struggling restaurant chain have been there too long and lack necessary experience.
A group that advises union pension funds has called on McDonald’s to shake-up its board, saying an upcoming CEO change will not be enough to lift it out its doldrums.
CtW Investment’s letter to the restaurant chain’s board Friday comes two weeks after the company announced Don Thompson would step down as CEO and be replaced in March by Steve Easterbrook, its chief brand officer who has been responsible for fixing the fast-food operator’s marketing and menu.
After years of growth, McDonald’s has hit a rough patch: 2014 was the first year with a decline in same-store sales in more than a decade. Last quarter was also the fifth straight quarter of declining same-store sales in the United States, where it has lost many customers because of an overly complicated menu, changing tastes, and defections to fast casual chains like Chipotle Mexican Grill .
The funds CtW advises own 2 million McDonald’s shares, or $190 million at Friday’s closing price and 0.2% of the company, and invest over $250 billion in the global capital markets.
“At this juncture, we believe it is critical for McDonald’s to have strong, independent board leadership,” CtW Executive Director Dieter Waizenegger wrote in the letter. “Fresh eyes are essential to drive the overhaul of the board’s composition, form a productive partnership with CEO Easterbrook in tackling the company’s strategic challenges, and restore the trust of long-term shareholders.”
CtW is calling on McDonald’s MCD 0.59% to come up with and publicly disclose plans to change the board’s leadership, and set up a board succession plan. The group faulted the board for having members who’ve been directors for too long- the average tenure has been 13 years– and for being to insular and tied to Chicago-area networks.
CtW made headlines last year with its opposition to the now concluded merger between Walgreen and Alliance Boots.
CtW said McDonald’s has been “complacent in not refreshing its membership earlier” given how much restaurant-going habits have changed, and pointed to how Coca-Cola, Starbucks Coffee and PepsiCo have been better at refreshing their board composition in the last few years.
“We respect and take seriously the views of all of our shareholders. The Board of Directors recently added a highly qualified new Director, appointed a new Chair of the Governance Committee and has made several senior management changes. Our Board is experienced, independent and committed to maximizing shareholder value,” McDonald’s said in a statement.
That’s not Mexican food....Most American’s eat American food which only resembles Mexican food...For good reason. Illegals love taco bell BTW. A burger joint wrapped in a tortilla.
Oh c'mon...they could have a big chain conveyer belt outdoors with 1/2 lb burgers moving over a bed of red not lava rocks, catching fire here and there. They'd have a line around the block, with people clamoring for one of their two sandwiche offerings...
Burger or cheese burger sir?
My advice to McDonald’s would be to go back to their 1960s menu: Burgers, Cheese Burgers, fries (fried in lard) and milk shakes. McDonald’s was good back then but has gone downhill since. Check out In-and-Out here in the West. That is all they offer and it is very good.
Did that ammo can fall, or was it thrown at us?
1/1 CAV, Americal, I Corps, 68-69.
Now let's talk about Congress....
If they offered the Egg McMuffin all day long, I’d go there once in awhile.
I do not like their burgers or fries at all anymore.
McD’s is another franchise that bowed to political correctness in order to remain trendy. I’m old (54). I remember when fast food was tasty. Taco Bell is awful now too.
Somehow the Egg McMuffin has remained somewhat good. My .02.
The McDonalds franchise here is the only chain that doesn't hire questionable workers with suspicious possibly-stolen SSNs.
Where do you eat when you go out?
McDonald's went from being preppy to being ghetto... it's a style thing. Just not my style.
Our local one is similar. Young, clean, caucasian kids in their first job. Not trying to make a career out of it and not acting pizzed at the world... like it should be.
“A lot of Americans prefer Mexican food. Go figure.”
Well, in Napa, CA the Mickey D’s is right next door to an In N’ Out Burger. The IoB is going strong day and night (the are open until 1 a.m and turn away customers at closing), but the Mickey D’s has almost no customers at any time. Ditto for the Jack in the Box a block away, and they just tore down the Burger King. Napa is 50% HIspanic! Go figure. BTW IoB has a limited menu and it’s all good!
Terms of my tour extension were transfer to a helo group, and off I went up further north.
Chu Lai did have it's charms. Where else could you sit back at night and watch the 122mm rockets aimed at you take off?
August 59 = August 69, typing in the dark again.........
4. Quit putting those nasty unripe apple slices in Kids Meals
I like the cuties.
Chu Lai was Americal HQ to be sure. Though we were stationed about 20 clicks south of there, off the Redball, Hill 29. We went east to the sea, and west into the Annamites. And I think we must have gone into Laos once, as the range appeared mostly to the east.
Despite the blood and terror, it is one heck of a country.
Went back there in 2000 with my daughter. What a trip. I knew it was beautiful. Worked out a lot of bugaboos.
I still think that ammo can was yours.
Welcome Home, dg.
This place has great food and great beer, and the service is good too.
Victoria Gastro Pub Columbia Maryland
I liked McDs in college but now it taste like crap. Burger King too.
Yep. And return to real ice cream shakes.
Good grief you corporate morons, go back to those tasty French fries cooked in animal fat for crying out loud!
“you deserve a break today...”
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