In the early hours of November 4, McDonald's (McDonald's) announced the dismissal of CEO (CEO) Steve Eastbrook (SteveEasterbrook), because Steve violated company policy and had a close relationship with an employee, (consensual relationship).. In an email to McDonald's employees, Steve, 52, admitted in an email to McDonald's employees that he had violated the company's rules on personal behavior.
"this is an error," steve wrote in the message: the "Taking into account the value of the company, I agree with the decision of the board to let me leave.".
Foreign netizens joked that CEO's strength interpreted McDonald's slogan "I'm lovin" it.
Increase interest or not increase income
McDonald's market value doubled in four years
Steve, 52, has been chief executive of McDonald's since March 2015. Prior to that, he served as the chief brand officer of McDonald's, and served as the head of McDonald's in the UK and Northern Europe.
Before Steve succeeded former CEO (CEO) Don Thompson. McDonald's performance is deteriorating, facing the worst decline in performance since 2012.
During Steve's four years in office, McDonald's revenue continued to decline, but its net profit increased dramatically.
Between 2015 and 2018, McDonald's revenue fell to $144.3 billion from $165 billion in 2015. But net profit rose 3.47 percent, 10.79 percent and 14.10 percent respectively over the past three years.
Analysts pointed out that during Steve's tenure, franchising became popular. Up to now, more than 90% of McDonald's Direct stores have been sold to franchised dealers, which is the main reason why McDonald's does not increase profits.
Still, the market is bullish on McDonald's, whose shares rose 139.44 percent during Steve's tenure to a total market capitalization of $147.3 billion (about 10311 trillion yuan).
Buffett missed 15 years and 30 times McDonald's
Buffett, who drinks Coca-Cola once a day and eats McDonald's three times a week, has been regretting the loss of McDonald's.
In 1996, in the fifth month of McDonald's high correction, Buffett spent $1.265 billion to enter, becoming the largest single investment ever.
It should be said that this investment is very successful, the purchase price is the lowest price at that time. But a year later, he sold it almost at its original price-earning only a year's dividend. It is said that because the results showed McDonald's sales stopped growing, at the same time, its share price rose only a little and fell back to where it was.
But shortly after Buffett's sale, the eccentric Mr. market pulled up the share price by more than one time, which made him and Munger deeply regret and always nagged that they had "made $1 billion less".
In February 2003, when the opportunity to make up for regret came, McDonald's shares fell to half of his bid, but Buffett turned a blind eye to it and remained indifferent-even though he said it was a good company on a number of occasions.
So far, McDonald's share price has risen from about $7 at that time to $193.94 today, nearly 30 times.
Obviously, Buffett is probably making far more than $1 billion less.
Frantic franchise strategy
McDonald's changed its name to "McDonald's" in China
Under Steve's franchise strategy, McDonald's in China has quietly become the golden arch.
On August 8, 2017, Citic shares, Carlyle Investment Group, for $2.08 billion to bring McDonald's China under its command.
The newly established McDonald's China will operate and manage McDonald's business in mainland China and Hong Kong.
In 2017, the "gold arch" 's name is called the "One of the most sensational marketing on the Internet in 2017".
"I wanted to use a different name. McDonald's didn't let me use it. I was so angry that I called it golden arch. At last, the amount of online reading about this news was 9 billion times. On average, every Chinese saw six articles about changing their name. Can this marketing strength be found in other places around the world? This shows that the potential of consumption is huge. " Zhang Yichen is frank.
In fact, Zhang Yichen's words are not empty.
McDonald's, though, did not separately disclose sales in China in the third quarter of 2019.
But according to the financial report, last year, McDonald's opened 432 new stores in China, and now the total number of McDonald's stores in China has reached 3249, with more than 170000 employees.
McDonald's China has also set targets for double-digit annual sales growth over the next five years from 2018, and expects the number of McDonald's restaurants in mainland China to increase from 2500 to 4500 by the end of 2022, and the rate of opening new restaurants will gradually rise from about 2500 per year in 2017 to about 4500 in 2022.
Compared with the stagnant operation in the United States, the business growth in China has become one of the biggest highlights in McDonald's financial report.
Not the first CEO to resign because of an office romance.
Steve is not the first CEO to be forced to resign because of an office romance.
In June 2018,Intel(Intel) Intel was recently told that Intel CEO Brian Krzanich (Brian Kozanick had a close relationship with the company's employees. After an internal and external investigation, Intel confirmed that Brian had violated non-goodwill regulations that all managers were required to abide by (non-fraternization policy), accepted Brian's resignation in order to uphold Intel values and conduct norms.)
Brian joined Intel as a process engineer as early as 1982, and was promoted to CEO of the company in 2013. He was responsible for leading Intel to the company's strategy of data centrization.
During Brian's tenure, Intel's revenue capacity continued to increase, and set a new record in Q2 2018, with total revenue close to $16.9 billion, all of which benefited from the accelerated development of data center.