McDonald's Appoints New US President After Sales Growth Disappoints

McDonald's has replaced the head of its U.S. business following a second-quarter sales report that fell short of analyst expectations. The company on Tuesday named Skye Anderson, a 26-year company veteran and most recently U.S. chief operating officer, as the new president of McDonald’s USA, effective immediately.

Leadership Shake-up

Anderson takes over from Joe Erlinger, who has led the U.S. division since 2019. Erlinger will remain with the company as an advisor to ensure a smooth transition until early 2027, according to a company statement. In her new role, Anderson will oversee approximately 14,000 U.S. restaurants, the company's largest market, and will be responsible for steering the rollout of its new "McDonald’s > NEXT" turnaround strategy.

CEO Chris Kempczinski described Anderson as a "change agent" capable of unlocking superior performance in the region. Some analysts interpreted the move as a sign of management's growing impatience with recent performance. Analysts at Citi noted the appointment could lead to a faster execution of initiatives aimed at boosting sales and profits.

Execution Lapses Cited for Sales Miss

The management change comes after McDonald's reported that U.S. same-store sales grew just 0.8% in the second quarter, below Wall Street forecasts. On an earnings call, Kempczinski attributed the miss not to strategy, but to operational failures.

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"We don’t have a strategy problem, we simply didn’t execute at the level we needed to in the second quarter," Kempczinski said. He explained that a crowded calendar of promotions overwhelmed restaurant staff, leading to longer wait times and dissatisfied customers. The CEO also identified a key misstep in cutting digital discounts while launching a new under-$3 menu, a "bad trade" that he said accounted for two-thirds of the sales miss.

Market Outlook

Fixing these operational issues will be a primary focus for Anderson over the next two quarters, according to Kempczinski. Analysts are looking ahead to the company's investor meeting in September for more details on Anderson's plans.

Analysts at TD Cowen wrote that they anticipate hearing Anderson's strategy to reaccelerate customer traffic and improve cash flow for franchisees. Anderson's extensive career at McDonald's includes finance roles, such as CFO of McDonald's Australia, before she moved to the U.S. division in 2017.