McDonald’s Corporation (NYSE: MCD), one of the world’s biggest fast-food chains, has made some changes to its leadership team. The changes were announced by CEO Chris Kempczinski.
Following the news, shares of the company declined marginally to close at $247.03 on Monday.
Kempczinski announced that Kevin Ozan, the current CFO of the company, has been promoted to the position of Senior Executive Vice-President, Strategic Initiatives. Ozan has been the CFO of the company since 2015.
Ian Borden will replace Ozan as the CFO of the company. Borden has also been given the additional responsibility of Executive Vice-President. The appointment will be effective from September 1. Borden currently occupies the position of President, International. He has been with the company for the last three decades.
Meanwhile, Francesca DeBiase, the Global Chief Supply Chain Officer, and Katie Fallon, the first Chief Global Impact Officer of the company, will stop operating in their current roles.
DeBiase’s position will be occupied by the current Chief Supply Chain Officer of North America, Marion Gross, who has also been promoted to Executive Vice-President. Gross will join the Global Leadership Team, effective September 1. However, a successor to Fallon has not been chosen. In the interim, Ozan will monitor the Global Impact team.
CEO’s Comments
Chris Kempczinski said, “I feel immense pride in everything the McDonald’s System has accomplished over the past several years and am confident that the leaders announced today will help accelerate our momentum.”
Stock Rating
On June 27, Barclays analyst Jeff Bernstein reiterated a Buy rating on the stock with a price target of $289, which implies upside potential of 17% from current levels.
Consensus among analysts is a Strong Buy based on 22 Buys and four Hold. MCD’s average price target of $279.33 implies upside potential of 13.1% from current levels. Shares have gained 9.3% over the past year.
Investors Are Positive
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on MCD, as 13.8% of top portfolios tracked by TipRanks increased their exposure to MCD stock over the past 30 days.
Conclusion
McDonald’s has not hired anyone new, which will help the company operate smoothly. Further, the promoted team is expected to tackle the prevailing uncertain economic situation more effectively, as it is already familiar with the operations of the company.
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