McDonald’s loses $4billion after CEO sacked

McDonald’s loses $4billion after CEO sacked

It was a market wipe out for giant food chain McDonald’s, a day after its board sacked its CEO Steve Easterbrook for consensual relationship with a staff.

In early trade, the company lost $4 billion in value, with the stock sinking as much as 3% after investors balked at the shock firing of the company’s CEO.

As at Friday, the company’s valuation was $147.3 billion.

Easterbrook was reputed to have turned round the fortunes of the company after its shock massive loss in 2015. Since then, McDonald’s share price had more than doubled.

The fast-food chain said in a press release on Sunday that it fired Easterbrook for violating company policy by having a relationship with an employee.

Easterbrook also acknowledged he made a mistake in an email to staff: “I engaged in a recent consensual relationship with an employee. This was a mistake,” he said.

“Given the values of the company, I agree with the board that it is time for me to move on.”

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