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 julie.jargon@wsj.com
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