Financial Accounting Blog

Thursday, April 22, 2004

MSNBC reports on the sudden passing of McDonald's CEO and the impact on company stock price. The increased perception of risk involved with a sudden change in leadership can lead to a drop in the stock price, and this example provides evidence of that.
"McDonald's Corp. chairman and CEO Jim Cantalupo, who helped engineer a turnaround of the fast-food chain by focusing on better food and service during 16 months at the helm, died unexpectedly of a heart attack Monday. He was 60."
"McDonald's shares fell 42 cents to $27.04 in morning trading on the New York Stock Exchange. The stock price rose by 49 percent from the time Cantalupo was named to the job through last week."