McDonald's Is Set to Lose $3.4 Billion in Value After the CEO Was Fired Over a Relationship With a Subordinate

McDonald's on Friday fired its CEO, Steve Easterbrook, for violating its policy of having a relationship with an employee.
McDonald's Is Set to Lose $3.4 Billion in Value After the CEO Was Fired Over a Relationship With a Subordinate
Image credit: Bloomberg | Getty Images

Find Your Ideal Franchise

Complete our short franchise quiz to discover the franchise that’s right for you.
2 min read
This story originally appeared on Business Insider

McDonald's is set to lose more than $3 billion in value on Monday morning, with the stock sinking 2.3% in premarket trading after investors balked at the shock firing of the company's CEO. 

That stock drop would wipe about $3.4 billion off the company's value at the open, based on its market capitalization of about $147.3 billion. The fast-food chain said in a press release on Sunday that it fired CEO Steve Easterbrook from the role after he said he was in a relationship with an employee. 

Since Easterbrook took the helm in 2015, McDonald's share price has more than doubled.

Related: 5 Things You Should Know Before You Buy a McDonald's Franchise

The company's board on Friday voted to remove Easterbrook from the role saying that he "violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee."

Easterbrook in an email to staff said that "I engaged in a recent consensual relationship with an employee. This was a mistake," according to the Financial Times, which cited the email as saying: "Given the values of the company, I agree with the board that it is time for me to move on."

Chris Kempczinski, who was previously serving as president, will take over from Easterbrook. The company said in a press release that "he is the best leader to set the vision and drive the plans for the company's continued success."

Related: Warren Buffett Says He Eats McDonald's 3 Times a Week

More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Discover the franchise that’s right for you by answering some quick questions about
  • Which industry you’re interested in
  • Why you want to buy a franchise
  • What your financial needs are
  • Where you’re located
  • And more
Discover a better way to hire freelancers. From business to marketing, sales, finance, design, technology, and more, we have the freelancers you need to tackle your most important work and projects, on-demand.

Latest on Entrepreneur