McDonald's announced Wednesday that its chief executive would step down, just days after the fast-food restaurant chain posted one of its worst financial performances in years.
Don Thompson, 51, will retire as president and chief executive, effective March 1, McDonald's said in a statement.
He will be replaced by Steve Easterbrook, the chain's chief branding officer, who will also replace Thompson on the McDonald's board, the statement said.
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McDonald's reported a sharp decline in sales and earnings last week, as stiff competition and evolving consumer tastes continued to take a toll on one of America's biggest restaurant brands.
It has lost a lot of ground with customers, including being unable to attract millennial consumers who gravitate more toward what are called fast-casual restaurants like Chipotle.
The world's largest hamburger chain said last week that revenue in the quarter through December fell 7 percent, to $6.6 billion. Earnings dropped 21 percent, to $1.1 billion from $1.4 billion in the same period a year ago.
McDonald's blamed the company's need to set aside greater reserves for taxes, as well as ongoing problems with a supplier in China.
Thompson, who has been with the company for more than two decades and chief executive since 2012, had warned that he expected the chain to continue to struggle this year.
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In a statement, Thompson said: "It's tough to say goodbye to the McFamily, but there is a time and season for everything. I am truly confident as I pass the reins over to Steve that he will continue to move our business and brand forward."
Thompson started at the company as an electrical engineer.
Andrew McKenna, the Oak Brook, Ill.-based company's non-executive chairman, said: "Steve is a strong and experienced executive who successfully led our U.K. and European business units, and the board is confident that he can effectively lead the company to improved financial and operational performance."
In after-hours trading, shares of the company jumped. The stock has declined about 6 percent in the past year.
