McDonald's shares got downgraded Piper Jaffray, following the firing of CEO Steve Easterbrook.
Easterbrook has to leave the company because his consensual relationship with an employee violated company policy. "This was a mistake," Easterbrook wrote in an email to employees on Sunday, "Given the values of the company, I agree with the board that it is time for me to move on."
Piper Jaffray analysts lowered their rating on the fast food chain’s shares to neutral from overweight. The price target also was cut to $195 from $224 at Piper Jaffray.
The exit of Easterbrook could create some disruption and pressure on McDonald shares, as indicated by Piper Jaffray’s moves. “Our experience leads us to take a more cautionary view noting the potential lack of momentum and time involved in formalizing a new team,” Piper Jaffray wrote.
However, Piper Jaffray also mentioned that their change in rating does not reflect McDonald's overall ability to “dominate in terms of global market scale, the effectiveness of its leadership team, or the effort behind its franchise network”.