McDonald’s shakes up US team amid competition

AP Food Industry Writer

McDonald’s Corp. is hoping a leadership shakeup for its U.S. operations will help it fight off intensifying competition.

The world’s biggest hamburger chain said Thursday that Jan Fields, president of McDonald’s USA, will be replaced by Jeff Stratton, its global chief restaurant officer, effective Dec. 1.

A McDonald’s spokeswoman said CEO Don Thompson and Fields are long-time friends and that they discussed the need for a change in leadership. A number of business factors played a role in the decision, but recent sales figures were not among them, said Heidi Barker Sa Shekhem, a McDonald’s spokeswoman.

“When you look at the size and scope of McDonald’s, there are numerous factors go into a decision like this,” she said. “It’s difficult to isolate factors.”

Fields, 57, was named president of McDonald’s USA in 2010 and started with the company as a crew member more than 35 years ago.

After years of outperforming its rivals, McDonald’s has struggled recently amid intensifying competition at home and a persistently weak economy abroad. In October, the company reported its first monthly sales decline since March 2003. In a recent conference call with analysts, Thompson said the fast-food company would return its focus on its Dollar Menu after efforts to shift customers to a slightly more expensive “Extra Value Menu” fell flat.

That emphasis on value is in contrast to rivals such as Wendy’s and Burger King, which have been introducing more premium offerings. Taco Bell, known for its affordable Mexican-style fare, also introduced its higher-end Cantina Bell bowls earlier this year. The moves are widely seen as a reaction to the growing popularity of chains such as Chipotle Mexican Grill and Panera Bread Co., which offer better quality food for slightly higher prices.

The U.S. accounts for about a third of McDonald’s total revenue, while Europe accounts for about 40 percent; the region encompassing Asia, the Middle East and Africa account for 22 percent. Thompson, who took over as CEO this summer, has also served as president of McDonald’s USA.

McDonald’s says Fields was behind major menu innovations, including the expansion of the specialty drinks menu that include fruit-flavored “chillers” and gourmet coffees. The lineup is popular and was credited for helping boost sales in recent years.

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