021205 McDonald CEO Abruptly Announces Retirement

New York - McDonald's Corp. abruptly announced the retirement of Chairman and CEO Jack Greenberg, who has been under fire for the world's No. 1 restaurant chain's weak performance in the face of mad cow disease, price wars and complaints about poor service.

Jim Cantalupo, former vice chair and president of the company, has been named to succeed Greenberg when he leaves at year's end, the company said in a statement.

Only eight months ago, the 30,000-restaurant chain had said Greenberg agreed to stay on for three more years. One of Greenberg's biggest problems has been disappointment that a new cooking system aimed at improving quality and service did not live up to expectations.

The move comes as McDonald's has struggled to reverse several years of weak sales and stalled earnings growth in its main market, the United States. Fierce competition in the U.S. fast-food sector, a perception of poor-quality food and slow service have all hampered its business in recent years.

"There is a time when it is appropriate to pass the baton and give a new management team the opportunity to lead, and that time has come at McDonald's," Greenberg said in a statement.

Cantalupo, 59, rejoins McDonald's after a brief absence. He joined the company in 1974 as controller and was named president of McDonald's International in 1987.

"The stock's performance was not what anybody wanted it to be," said Dennis Lombardi, executive vice- president of food service consulting firm Technomic Inc. in Chicago.

The company also named Charlie Bell, now president of McDonald's Europe, to the post of president and chief operating officer. Additionally, it named Jim Skinner to the post of vice chairman of the company. Both Bell and Skinner will report to Cantalupo.

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