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Dan Saelinger

McFamily Feud: Scandal, lawsuits, and cultural upheaval at McDonald’s

Many U.S. companies are attempting to remake themselves to keep up with the larger forces transforming the world: a pandemic, digital disruption, political and social upheaval. But at McDonald’s, this already mammoth undertaking has taken on a new sense of urgency.

For one, the Golden Arches is emerging from a scandal brought on by its former CEO Steve Easterbrook, who was fired for sexting with an employee. Since then, the company has sued Easterbrook in an attempt to claw back his compensation, alleging that he had sexual relationships with three employees in the year before his departure. (Easterbrook’s lawyers call the suit meritless.) It’s a surprising choice for such a staid company—opting to air its dirty laundry rather than sweep the whole mess under the rug.

Now new CEO Chris Kempczinski is trying to take McDonald's into a post-Easterbrook era, with the focus on a cultural turnaround rather than a business one. No easy job—and one being made all the more difficult by a powerful group of franchisees with have a very different view on what’s best for the company’s future.