May 21--McDonald's new CEO Steve Easterbrook told shareholders at Thursday's annual meeting that he's committed to improving the burger giant's performance.
The meeting came as hundreds of protesters gathered outside the company's Oak Brook campus, seeking higher wages and union representation for its restaurant workers.
Shareholders at the meeting, meanwhile, peppered executives with questions about issues including what they call predatory marketing tactics, such as having Ronald McDonald appear at school functions.
"Ronald's here to stay," Easterbrook told shareholders.
Easterbrook, who took the helm March 1, told shareholders that he is committed to turning around the business, including placing a renewed focus on basics such as serving hot, fresh food with fast and friendly service.
As in years past, the world's largest restaurant company was asked about a variety of topics from wages to marketing.
The questions and comments during the meeting were not all negative. Some shareholders praised the efforts the company has taken, such as offering free access to high school classes for employees working toward a diploma.
One shareholder said he does not think McDonald's needs to pay $15 an hour, and that jobs at the restaurants should be seen as a steppingstone.
Easterbrook said he was "incredibly proud" of a recent decision to bump pay for workers at company-owned restaurants, referring to the plan to raise the pay to $1 above the minimum wage beginning in July. Labor organizers have said the move falls short, in part because McDonald's owns only about 10 percent of its more than 14,300 U.S. stores.
Another shareholder brought up past changes: "I'd like to ask why Chipotle was sold," she said, referring to the successful fast-casual chain Chipotle Mexican Grill, which McDonald's invested in until the mid-2000s. Easterbrook defended that move as a good decision "at the time."
Only one shareholder proposal received a majority of votes, according to the preliminary tallies announced by Chairman Andrew McKenna.
Shareholders, with a 61 percent majority, approved a proposal to make it easier for some long-term investors to nominate directors. McDonald's had opposed the proposal, which it said could enable shareholders with "special interests" to nominate directors.
The proposal had the support of Chicago city Treasurer Kurt Summers Jr. as well as the comptrollers for the city and state of New York, and California's controller. In a statement released Wednesday, they discussed their desire for board directors focused on the long-term health of businesses. They said they were supporting resolutions requesting so-called proxy access this year at McDonald's and roughly 100 other companies.
Thursday's meeting, which ran a little more than an hour, was closed to media as it was in 2014. Audio from the event was broadcast over the Internet.
Chicago Tribune's Alejandra Cancino and The Associated Press contributed.
jwohl@tribpub.com
