McDonald's makes C-suite, exec moves

The fast-food giant is focusing on supply chain, overseas expansion

McDonald's makes C-suite, exec moves

McDonald’s Corp. has announced several promotions, as the fast-food giant navigates “an increasingly complex and uncertain operating environment,” according to CEO Chris Kempczinski.

The Chicago-based company has named Ian Borden as its new chief financial officer starting Sept. 1. Currently president of international operations, Borden will replace Kevin Ozan, who is becoming senior executive vice president for strategic initiatives.

Also, Francesca DeBiase, the global supply chain chief, is retiring Aug. 31 and will be replaced by Marion Gross, who currently oversees the supply chain in North America.

Read more: Return of the Mac: McDonald’s director of people strategy on thriving in a pandemic

Both Ozan and DeBiase had been in their roles since March 2015. Ozan plans to retire from McDonald’s by mid-2023, the company said. Gross has been at McDonald’s for 29 years. Borden joined the McDonald’s in Canada in 1994 and served in several international roles, including as CFO for Russia and eastern Europe.

Accounting for more than 60% of the restaurant chain’s revenue, international markets have been growing faster than the domestic business in the United States as countries lift COVID-19 pandemic restrictions, Bloomberg reported.

In addition to contending with supply-chain issues and an extremely tight labor market, McDonald’s pulled out of Russia last month. In March, the company temporarily closed 850 outlets due to Russia’s invasion of Ukraine. The company claimed that the decision came down to the "humanitarian crisis" and "unpredictable operating environment" amid the ongoing conflict.

McDonalds added that one of its main priorities now was looking to ensure its 62,000 employees in Russia will continue to be paid and supported until any sale was completed.

“The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald’s to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald’s values,” the company said in a statement. “McDonald’s priorities include seeking to ensure the employees of McDonald’s Russia continue to be paid until the close of any transaction and that employees have future employment with any potential buyer.”

“We have a long history of establishing deep, local roots wherever the Arches shine,” Kempczinski added. “We’re exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to McDonald’s make today’s announcement extremely difficult. However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there.”

McDonald’s has operated in Russia for over 30 years, opening its first outlet in Moscow in 1990.