McDonald's Corp., which has been trying to regain momentum after
a series of missteps, said its chief operating officer would retire
in October.
The company said it won't replace operating chief Tim Fenton,
age 56, who will step down Oct. 1. Instead, it will restructure its
senior ranks so that global division presidents would report
directly to CEO Don Thompson.
Mr. Fenton had been considered a contender for the CEO position
at the Oak Brook, Ill., restaurant chain. A 41-year veteran of the
company, Mr. Fenton got his start working at a McDonald's in Utica,
N.Y.
In a news release, he said his decision was related to his
severe asthma. "I simply cannot continue to meet the global travel
demands of this position and will focus on improving my health
closer to home," he said.
A McDonald's spokeswoman said Mr. Fenton's "retirement and the
timing were both his personal choice."
Mr. Fenton will serve as a special adviser to Mr. Thompson
focused on global franchising and restaurant portfolio
optimization, among other things.
Mr. Thompson, who is nearing his second anniversary as CEO, has
previously made changes in response to slowing sales growth. In
December 2012 he replaced McDonald's U.S. president and veteran
executive Jan Fields.
Earlier this month McDonald's reported its fourth consecutive
month of same-store U.S. sales declines. Executives recently
conceded that McDonald's complicated their kitchen operations with
too many new menu items, resulting in slower service.
On Thursday, McDonald's said it would broaden responsibilities
for two other senior leaders. Chief Financial Officer Pete Bensen
will oversee world-wide supply chain, development and franchising
functions, and Global Chief Brand Officer Steve Easterbrook will
oversee the restaurant solutions group and corporate strategy and
the sustainability and philanthropy department.
This isn't the first time a high-ranking McDonald's executive
has retired, citing health reasons. In December 2009, Chief
Operating Officer Ralph Alvarez, 55 at the time and widely regarded
as the likely successor to then Chief Executive Jim Skinner,
abruptly announced his retirement, saying that chronic knee
problems made the global travel required by his job too
painful.
Write to Julie Jargon at Julie.Jargon@wsj.com
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