An employee working the coffee machine at a Wheaton McDonald’s. Mary Dillon’s vacancy comes at a time of strength for McDonald’s, which is powering ahead with help from espresso-based drinks and premium burgers. (Bill Hogan/Chicago Tribune)
Dow Jones Newswires | McDonald’s Corp. is launching a search for a new global marketing chief
following the departure of Mary Dillon, who’s taking the top job at U.S.
Cellular Corp.
On Monday, the Chicago-based wireless carrier named the 48-year-old as
president and chief executive, effective June 1, to replace John Rooney,
who is retiring after a decade at the helm.
Dillon’s departure opens one of the most high-profile marketing
positions in the world, and her successor will help shape the message of
the largest fast-food chain in the world, serving more than 60 million
customers a day. McDonald’s, with an annual advertising budget of about
$2 billion, according to Ad Age’s DataCenter, outspends all other
restaurant companies on marketing activities and ranks among the top 15
advertisers in the world.
McDonald’s spokesman Walt Riker said the company wasn’t surprised with Dillon’s departure. He wouldn’t set a timetable for filling the global chief marketing officer role, but said the company expects a smooth transition. Riker wouldn’t say if McDonald’s will look outside the company or within its own ranks.
The vacancy comes at a time of strength for McDonald’s, which, after outperforming competitors as the downturn struck, is now powering ahead as the economy slowly improves. The fast-food industry has struggled lately, but McDonald’s same-store sales are rising with help from espresso-based drinks and premium burgers, while also attracting customers with Dollar Menus, including at breakfast.
Dillon’s forte was honing McDonald’s marketing message with consumer insight. Under her watch, she created a Global Moms Advisory Panel to gather feedback on nutritional issues. McDonald’s appeal to families also has been credited in helping sales in a coveted demographic, while operators of other fast-food chain’s battled for the “young, hungry guys.”
Dillon has been wooed lately for No. 2 positions at several other companies because “she is seen as broader than a marketing person,” a professional acquaintance of Dillon said. “She wasn’t willing to consider leaving McDonald’s unless it involved stepping into a broader role.”
Nor was the Chicago native interested in leaving the area, according to the acquaintance.
In an email to McDonald’s franchisees, Dillon said, “This is a tremendous personal and professional opportunity — and one that after a great deal of deliberation I decided to follow.” Her resignation is effective May 18.
U.S. Cellular may have been attracted by Dillon’s proven ability to build brands for consumer products, the acquaintance suggested. “She’s very sharp, very strategic (and) well-liked as a leader.” However, this individual added, the first-time CEO lacks experience at getting a company ready for sale and doesn’t know the telecom business.
U.S. Cellular, the sixth-largest wireless carrier with a presence in 26 states and operating revenue of $4.2 billion last year, is getting squeezed from above and below as the larger carriers outmuscle it with better coverage and phones, while the smaller players use price to nab new customers.
Dillon is just the latest executive picked from a company with heavy consumer focus to lead a service provider. Michael White, a 20-year veteran at Pepsi, took the reins of DirecTV Group Inc. at the start of the year. Qwest Communications International Inc. Chief Executive Ed Mueller was previously CEO of Williams-Sonoma Inc.
McDonald’s has marketing executives heading each of its geographical operating divisions, including Neil Golden in the U.S.; Andrew Hipsley in the Asia/Pacific, Middle East and Africa region; and Pierre Woreczek in Europe. Other in-house marketing experts include Dean Barrett, senior vice president of global marketing, and Mauro Multedo, the marketing vice president for McDonald’s in Brazil and Latin America.
“We have a very strong, experienced bench of marketing leadership, not just here in Oak Brook, but around the world,” Riker said.
