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McDonald's U.S. president to retire

OAK BROOK — McDonald's U.S. President Mike Andres will retire at the end of the year, the global fast-food giant announced Wednesday.

He will be replaced by Chris Kempczinski, currently executive vice president of strategy, business development and innovation, effective Jan. 1, 2017.

Andres, 58, a 30-year McDonald's employee whose father was a pilot for Ray Kroc, had overseen some of the key elements of McDonald's turnaround, such as the rollout of an all-day breakfast menu last year and the phasing out of ingredients people may find unpalatable. He had been appointed under previous McDonald's CEO Don Thompson, who was succeeded by Easterbrook after sales slumped and customer visits declined at established U.S. locations.

“Mike has been relentless in his commitment to building a better brand,” said Easterbrook.

Kempczinski joined McDonald's last year after serving as executive vice president, growth initiatives and president of international at Kraft Foods Group. His limited experience with McDonald's marks a change for the company — the past three presidents of the U.S. business have been McDonald's veterans.

“As we thank Mike for his contributions, we are confident Chris is the right leader to build upon our U.S. progress and bring a new level of convenience and excitement to the restaurant experience,” Easterbrook added.

The leadership change comes under Easterbrook, who took over last year and is trying to step up the image of McDonald's burgers and fries while fending off a growing number of competitors. Easterbrook has vowed to cut costs and move more quickly to ensure McDonald's is keeping pace with changing tastes and habits.

The company's performance has shown improvement more recently, with sales at established U.S. locations rising in each of the past four quarters. The company hasn't said how much of that has been the result of more frequent customer visits, versus factors such as higher pricing.

The company announced Lucy Brady will take over Kempczinski's role as senior vice president of corporate strategy and business development. Brady comes to McDonald's from The Boston Consulting Group, where she was senior partner and managing director, leading several turnaround and strategic growth initiatives.

In addition, President of the International Lead Markets Doug Goare will take on the additional role of chief restaurant officer, overseeing a number of business functions managed by Chief Administrative Officer Pete Bensen who is retiring in September.

In April, McDonald's also announced the retirement of longtime board member and chair Andrew McKenna.

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