McDonald's Names Executives With Health-Care Ties to Its Board

By Julie Jargon 

McDonald's Corp. appointed two new board members with ties to the health-care industry as the burger giant pursues a turnaround amid a shift in U.S. consumer tastes toward healthier, fresher foods.

Lloyd Dean, chief executive of Dignity Health, and John Mulligan, chief financial officer at Target Corp. and a member of the Minnesota Children's Hospitals and Clinics board, joined McDonald's board, the company said Tuesday.

McDonald's has been trying to burnish its image as a chain that offers healthier options with fresh ingredients in a bid to lure back young customers who have flocked to fast-casual restaurants such as Chipotle Mexican Grill Inc.

Mr. Dean, 65 years old, has led Dignity Health, one of the country's largest hospital systems, since 2000. Before Dignity Health, Mr. Dean was chief operating officer at Advocate Health Care.

Mr. Mulligan, 49, has been CFO at Target since 2012 and served as interim chief executive from May to August 2014. He is one of the youngest members of the McDonald's board.

McDonald's CEO Steve Easterbrook, who took the helm amid flagging sales in March, said the new directors "bring fresh insight and perspectives" as it seeks a comeback.

The appointments come as McDonald's faces a backlash from advocacy groups for serving its fast food at hospitals. Some hospitals recently have ended leases with fast-food chains including McDonald's.

"It's healthwashing at its finest-padding its board to deflect growing health concerns and give the brand a healthy veneer," Sriram Madhusoodanan, who leads a fast-food industry accountability campaign for Corporate Accountability International, a corporate watchdog group, said Tuesday.

A McDonald's spokeswoman said the board appointed Messrs. Dean and Mulligan because of their operational and financial expertise. "Both individuals are known for playing key roles with brand transformations," she said.

Write to Julie Jargon at [e-mail]

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