McDonald's Corp. announced another management shake-up, as the
burger chain tries to regain momentum after a series of
missteps.
The company said Thursday that Chief Operating Officer Tim
Fenton, 56, has decided to retire from McDonald's on Oct. 1.
McDonald's said that it won't replace Mr. Fenton, and instead will
restructure its senior ranks so that global division presidents
would report directly to Chief Executive Don Thompson.
Mr. Fenton had been considered a contender for the CEO position.
A 41-year veteran of McDonald's, he got his start as a restaurant
employee at a Utica, N.Y., outlet of the burger giant. In a news
release, he said his decision was related to his severe asthma. "I
simply cannot continue to meet the global travel demands of this
position and will focus on improving my health closer to home," he
said.
A McDonald's spokeswoman said that his "retirement and the
timing were both his personal choice."
Mr. Thompson, who is nearing his second anniversary as CEO, has
previously made changes at the company in response to slowing sales
growth. In December 2012 he replaced McDonald's U.S. president and
veteran executive Jan Fields.
Earlier this month McDonald's reported its fourth consecutive
month of same-store sales declines in the U.S. Executives recently
have admitted to complicating their kitchen operations with too
many new menu items, which resulted in slower service.
Mr. Fenton will serve as a special adviser to Mr. Thompson
focused on global franchising and restaurant portfolio
optimization, among other things.
In announcing Mr. Fenton's retirement, McDonald's said it would
broaden responsibilities for two other senior leaders. Chief
Financial Officer Pete Bensen will assume oversight for world-wide
supply chain, development and franchising functions, and Global
Chief Brand Officer Steve Easterbrook will assume oversight for the
restaurant solutions group and corporate strategy and the company's
sustainability and philanthropy department.
Write to Julie Jargon at Julie.Jargon@wsj.com
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