McDonald’s COO to Retire

Ralph Alvarez, Chief Operating Officer (COO) of McDonald’s Corporation (MCD - Analyst Report) announced yesterday his intention to retire due to health related issues, effective December 31, 2009.

After about 30 years in the restaurant industry, and the past 15 years with the McDonald’s brand, Alvarez has decided to retire after multiple orthopedic surgeries and several years of chronic pain leading to two knee replacements in the last six months.

He has also decided to resign as a member of the Board of Directors of McDonald’s. Alvarez, who is 55, joined McDonald's in 1994. During his tenure, he has held a variety of leadership roles, including being President of McDonald's North America and President of McDonald's USA. Previously, he served as Chief Operations Officer and President of the Central Division, both with McDonald's USA. Before joining the U.S. business, he was President of McDonald's Mexico.

As a result of this change, the company's Area of the World executive leadership team, which is responsible for the operation of 32,000 McDonald's restaurants worldwide, will now report directly to Chief Executive Officer Jim Skinner. The company so far has not disclosed any plans for a COO replacement.

McDonald’s Corporation recently reported third-quarter 2009 results that topped the Zacks Consensus Estimate, driven by effective cost control and rise in comparable sales across all regions. McDonald’s quarterly earnings came in at $1.15 per share, up 10% from $1.05 reported in the prior-year quarter, and surpassed the Zacks Consensus Estimate of $1.11 per share. However, revenues were down 4% to $6,046.7 million, but increased 2% in constant currencies.

The Oak Brook, IL-based McDonald’s Corporation is a leading fast food chain operating 32,278 restaurants in over 118 countries as on September 30, 2009. The company mainly operates and franchises quick-service restaurants (QSRs) under the McDonald’s brand.

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