McDonald's CEO Skinner announces retirement

OAK BROOK, Illinois  – McDonald's said Wednesday that Chief Executive Officer Jim Skinner will retire later this year, handing over responsibility for running the world's largest burger chain to the company's president.




Skinner, who has been CEO since 2004, will step down June 30 after 41 years with McDonald's (MCD). Donald Thompson, a 22-year McDonald's veteran who is responsible for global strategy and operations for its more than 33,000 McDonald's restaurants in 119 countries, will take over the next day, the company said.
Thompson, who has long been considered among the top candidates to succeed Skinner, will be the first African American to head McDonald's since it was founded in 1955.
Andy McKenna, chairman of McDonald's board, said Thompson's track record and experience "speak to his qualifications to further drive the company's momentum."
The challenge for Thompson, 48, will be to continue the momentum that Skinner, 67, started with the company.
Skinner was among the group of executives that designed the "Plan to Win," which was rolled out in 2003. That plan is credited with turning around the company, which had seen its stock drop after years of corporate expansion.




McDonald’s performance has improved consistently under Skinner’s tenure and stock price has climbed consistently higher, even through the financial crisis. Company stock was trading at about $32 when Skinner took over, and closed at $96.72 Wednesday.


McDonald’s chairman Andrew McKenna noted that total annual shareholder return was 21 percent during Skinner’s tenure, and the company’s market capitalization crossed the $100 billion mark.


Skinner described Thompson as “well prepared” to take over. “Under his leadership, our company will continue to meet the needs of our 68 million customers around the world every day,” he said.


Wall Street has seen Thompson as heir apparent since 2010, meaning invetors are unlikely to be surprised by the move.


Thompson, who lived on Chicago's Near North Side until sixth grade, started at Oak Brook-based McDonald's in 1990, working his way up to become president of McDonald's USA in August 2006 and then president and chief operating officer of McDonald’s Corp. in January 2010.


Trained as an electrical engineer at Purdue University, Thompson was working at defense contractor Northrop Corp. when he received a call from a McDonald's recruiter. He soon went from designing radar-jamming systems to restaurant equipment systems.


McDonald’s in recent years has benefited both from frugal consumers and from the company’s global reach. It operates 33,000 restaurants throughout the world, including more than 14,000 in the U.S.


In the U.S., Skinner and Thompson have focused on improving McDonald’s store operations, and perception with so-called “veto voters,” who can steer a group to another restaurant. The company has targeted women, and mothers in particular, to earn their trust in food they buy for their children, and eventually to sell them something as well.


In recent years, the company has retooled its menu to include higher-quality salads and coffee. McDonald’s has also expanded into lattes, smoothies and blended-ice beverages.