McDonald's Chairman Andrew J. McKenna to Retire -- 2nd Update

By Josh Beckerman 

McDonald's Corp. said its chairman for the past 12 years, Andrew J. McKenna, will retire.

A new chairman will be elected following the company's May 26 annual meeting. Mr. McKenna will become chairman emeritus.

Mr. McKenna has been an independent director at the fast food giant for 25 years.

In a statement Wednesday, Miles White, chairman of the board's governance committee, said Mr. McKenna's "leadership helped guide McDonald's through some noteworthy highs and some challenging times."

Shares of the company rose 0.1% to close at $127.52 on Wednesday. They have risen 32% in the past 12 months.

After decades as the leader of a small group of fast-food icons, McDonald's has faced more competition from burger upstarts like Five Guys and Shake Shack Inc. It has also lost some of the spotlight to fast-casual chains like Chipotle Mexican Grill Inc., a former McDonald's division. Last year, McDonald's closed more of its U.S. restaurants than it opened for the first time in its history, for a net loss of about 100 restaurants.

But the company has been successful so far in revamping itself. In January, McDonald's posted its best U.S. quarterly sales in nearly four years, driven by the launch of all-day breakfast, a sign the rebuilding efforts of Chief Executive Stephen Easterbrook were gaining traction.

Sales at McDonald's U.S. restaurants open at least 13 months jumped 5.7% in the fourth quarter. That was well above the 2.7% growth analysts had expected and the best same-store sales results in the U.S. in 15 quarters.

The company's initiatives have include expansion in China, where it plans to add 1,300 restaurants to its current 2,200.

Mr. McKenna is also chairman emeritus of Schwarz Supply Source, which provides packaging and promotional materials, and is a director of Ryan Specialty Group, which provides insurance and risk management services.

McDonald's has more than 36,000 locations in over 100 countries.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

April 06, 2016 17:42 ET (21:42 GMT)

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