McDonald’s has booted CEO Steve Easterbrook after its board determined a consensual relationship he had with an employee violated company policy.

He was replaced by Chris Kempczinski, who most recently served as president of McDonald’s USA.

Easterbrook, who became president and CEO in 2015 after a long career with McDonald’s, “separated from the company following the Board’s determination that he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee,” the Chicago-based fast-food giant said in a statement Sunday.

The board of directors voted Friday to terminate him. Easterbrook, who collected total compensation last year of nearly $15.9 million, also resigned from the board. The company declined to provide additional details about the relationship in question.

In a letter to employees, Easterbrook, 52, admitted the relationship violated McDonald’s policy.

“This was a mistake,” said Easterbrook, who is divorced. “Given the values of the company, I agree with the Board that it is time for me to move on.” He went on to ask for privacy and congratulate Kempczinski, whom he called “driven and forward-looking” and “the ideal person” to take the CEO role.

Easterbrook is also on the board of directors of Walmart.

Bob Goldin, head of Chicago-based food industry consultancy Pentallect, said McDonald’s business and trajectory are unlikely to be hurt by the leadership change.

“They have a deep bench, it is a well-oiled machine,” Goldin said. Despite its challenges, “they are very solid in a very competitive, very tough environment.”

In addition, he said, McDonald’s is unlikely to suffer any reputational damage. “I think that the fact that the board acted quickly and decisively, people will say they did the right thing.”

Easterbrook had been at the helm of efforts to modernize McDonald’s, including major store renovations and the installation of self-service kiosks and digital menu boards. Those plans created friction with some franchisees, who formed an owners’ organization to voice their frustrations that the investments were hurting profits, prompting executives to push back the deadline for renovations.

The burger chain also has invested in technology companies capable of speeding and personalizing the drive-thru experience, and is boosting its delivery capabilities.

Kempczinski, 51, was brought into McDonald’s by Easterbrook in 2015 as head of strategy, business development and innovation, and was promoted to lead the U.S. business in 2017. He took part in devising the modernization plan and isn’t expected to shift course.

“I expect that we will continue to use the Velocity Growth Plan as our strategic roadmap, as the retain/regain/convert framework is still highly relevant to the opportunities available to us,” Kempczinski said in an email to employees. He previously held roles at Kraft, PepsiCo and Procter & Gamble.

Kempczinski was elected to the McDonald’s board.

Taking Kempczinski’s place as president of McDonald’s USA is Joe Erlinger, most recently president of International Operated Markets.

The company by Tuesday expects to file disclosures on pay and severance.

Easterbrook’s termination was unrelated to the company’s performance, McDonald’s said. The company has struggled to drive people into its restaurants amid heavy competition and a desire for healthier fare.

It recently reported third-quarter earnings of $1.6 billion on $5.4 billion in revenue, falling slightly short of analysts’ expectations. Same-store sales — a critical measure of sales in restaurants that have been open at least one year — have grown, but due mostly to increased menu prices and promotions rather than more customer visits.

Easterbrook is not the first CEO to lose his job over a romance.

Brian Krzanich resigned as CEO of Intel last year following revelations of an affair with a subordinate. He is now head of Hoffman Estates-based CDK Global, an auto dealership software company.

Darren Huston resigned as CEO of Priceline in 2016, Brian Dunn as CEO of Best Buy in 2012, and Harry Stonecipher resigned as CEO of Boeing in 2005, over relationships with employees.

aelejalderuiz@chicagotribune.com

Twitter @alexiaer

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