McDonald's taps ex-Obama aide as PR exec

Kevin McCoy and Nathan Bomey | USA TODAY

McDonald's (MCD) tapped an Obama administration veteran Tuesday to communicate the fast-food giant's corporate message as the company executes a difficult turnaround plan.

Robert Gibbs, who served as President Obama's first-term White House spokesman and later served as a re-election campaign adviser, has been named executive vice president and global chief communications officer for McDonald's, the company said.

McDonald's also named Silvia Lagnado, the former chief marketing officer for spirits company Bacardi Limited and creator of Dove's" Campaign for Real Beauty" as the company's executive vice president and global chief marketing officer.

The appointments mark the latest moves by the new CEO of McDonald's, Steve Easterbrook. He's executing a turnaround strategy for the chain, which has about 36,000 locations in more than 100 countries.

"Robert and Silvia are both highly respected, talented leaders who will bring a wealth of experience and outside perspective to McDonald's as we build a more modern, progressive burger company," Easterbrook said in a statement.

"Returning excitement to our business proposition and brand is foundational to our turnaround plan, and Robert and Silvia -- with their respective teams -- will play critical roles in bringing this strategy to life," Easterbrook added.

Gibbs will lead McDonald's corporate relations group, which manages internal and external communications and government and public affairs, the company said.

The new job focuses on ensuring that McDonald's communicates "clear, coordinated messages" to the company's internal and external constituencies, the company said.

Gibbs succeeds Bridget Coffing, who announced her retirement earlier this year after 30 years with McDonald's.

Lagnado will be responsible for all aspects of global brand management for McDonald's, including global marketing, menu and consumer insight, the company said.

The appointments come just over a month after Easterbrook unveiled the latest effort to revive the flagging fortunes of the world's largest fast-food chain and fend off competition from newer and more upmarket rivals such as Chipotle (CMG) and Shake Shake (SHAK).

Just two months into the top McDonald's job himself at the time of the May announcement, Easterbrook said 3,500 company-owned stores would be sold to franchisees as part of what he termed an "urgent need to reset this business."

McDonald's previously had said it would refranchise at least 1,500 restaurants by 2016. That would mean 90% of the chain's more than 36,000 locations worldwide would be franchised by 2018 — up from 81% now.

The change would generate more stable and predictable cash flow, Easterbrook said.

Additionally, Easterbrook said McDonald's will restructure its business into four areas: U.S.-based stores; international lead markets (including Australia, Canada, France, Germany and the U.K.); high-growth markets (China, Italy, Poland, Russia and four other nations); and foundational markets (10 other countries).

McDonald's simultaneously is experimenting with all-day breakfast offerings in the San Diego market as part of an effort to lure Millennial customers, widely considered a key to the company's future growth. Last month, the company also began testing home-delivery service to customers in the Manhattan, Brooklyn and Queens boroughs of New York City.

However, the turnaround effort has yet to have a major impact on the bottom line. On Monday, McDonald's reported that its sales dropped 0.3% globally in May compared with the same period last year.

The company's shares closed down 0.62% at $94.73 in Tuesday trading.