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McD's orders a new CEO
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April 30, 1998: 12:01 p.m. ET
New chief under the golden arches as Quinlan passes baton to Greenberg
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NEW YORK (CNNfn) - McDonald's Corp., continuing its wide-scale shake-up, said Thursday it has named vice chairman and U.S. operations chief Jack Greenberg as the new top executive at the fast-food chain
Greenberg is set to become chief executive officer on Aug. 1, replacing 11-year helmsman Michael Quinlan, who will stay as McDonald's chairman.
"I'm proud to pass the baton to Jack Greenberg, because he is thoroughly prepared to take on the challenging responsibilities of being chief executive officer," said Quinlan in a statement.
McDonald's last month announced plans to reorganize its home office, begin a new made-to-order food production system, and help its franchisees pay for that system.
Edward Penney, an analyst with Morgan Stanley, said McDonald's will look different under Greenberg.
"It's got to look better than it did before," he said, adding that McDonald's has seen various fast-food competitors eat into its market share over the past two years. "There is a lot of fat that can be cut," he said.
McDonald's shares, which are part of the Dow Jones industrial average, were up 1-3/16 at 60-1/2 on Wall Street Thursday.
Greenberg has been a board member at McDonald's since he joined the company in 1982 as chief financial officer and executive vice president.
Before joining McDonald's, Greenberg, a lawyer and accountant, was a director of tax services at the accounting firm Arthur Young & Co., a predecessor of the current "Big Six" firm Ernst & Young.
McDonald's also opened the wrapper on a wide-scale reshuffling in much of its top-level management.
James R. Cantalupo, president and CEO of McDonald's International, has been promoted to the post of vice chairman and will report to Greenberg.
Alan Feldman, now division president of northeastern U.S. operations, will become president of McDonald's USA and will report to Greenberg.
"These are two people who didn't come from within the company," said Penney. "They didn't start flipping burgers and cleaning bathrooms.
"One criticism of McDonald's has been that it's too inbred," he added.
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McDonald's
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