McDonald’s discloses plans to acquire Israeli digital-marketing startup Dynamic Yield Ltd. for more than $300 million, its biggest acquisition in two decades.
Oct. 21, 2019
Higher prices and promotions lifted sales in its latest quarter, McDonald’s says, but earnings-per-share and U.S. revenue growth fall short of expectations.
McDonald’s shares, up 9% this year, have trailed the broader S&P index tracking restaurants in that period, including other fast-food peers such as
Restaurant Brands International Inc.
McDonald’s faces more challenges at the U.S. restaurants that drive its sales. Labor organizers and some lawmakers have called on the company to address workplace harassment issues and raise its minimum wage to $15 an hour.
This year, McDonald’s strengthened workplace training and protocol for reporting potential employee misconduct. Mr. Kempczinski said the company had a responsibility to address workplace well-being. The company said this year that it would stop lobbying against federal minimum wage increases, and that it recognizes the rights of its employees to join labor organizations.
The company said details of Messrs. Kempczinski’s and Easterbrook’s pay would be disclosed in a filing by Tuesday.
Mr. Easterbrook, who is divorced, had a long career at McDonald’s. Before becoming CEO, he worked as head of the company’s U.K. business, which he helped return to growth by modernizing its restaurants, revamping the menu and portraying McDonald’s as environmentally friendly—tactics he later employed at the company more broadly. Mr. Easterbrook, who was born in Watford, England, was the second non-American to lead the company, after the late Charlie Bell of Australia.
Mr. Easterbrook left McDonald’s in 2011 to become CEO of Britain’s PizzaExpress Ltd. and then Japanese-style noodle bar chain Wagamama Ltd. Two years later he returned, eventually becoming McDonald’s global chief brand officer.
Within months of becoming CEO, he enacted several changes, including committing to switch to cage-free eggs, antibiotic-free chicken and hormone-free milk; raising workers’ pay above minimum wage and giving different geographic markets more control over the menu.
His pay as CEO rose with McDonald’s share price, which closed Friday at $194. His compensation peaked in 2017 at a total of $21.8 million including $9.1 million in incentive-based pay. He received $15.9 million in total compensation last year. He also sits on the board of Walmart Inc.
Walmart didn’t immediately respond to a request for comment.
Write to Heather Haddon at email@example.com
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