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McDonald’s is set to lose more than $3 billion in value on Monday morning, with the stock sinking 2.3% in premarket trading after investors balked at the shock firing of the company’s CEO.
That stock drop would wipe about $3.4 billion off the company’s value at the open, based on its market capitalization of about $147.3 billion. The fast-food chain said in a press release on Sunday that it fired CEO Steve Easterbrook from the role after he said he was in a relationship with an employee.
Since Easterbrook took the helm in 2015, McDonald’s share price has more than doubled.
The company’s board on Friday voted to remove Easterbrook from the role saying that he “violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.”
Easterbrook in an email to staff said that “I engaged in a recent consensual relationship with an employee. This was a mistake,” according to the Financial Times, which cited the email as saying: “Given the values of the company, I agree with the board that it is time for me to move on.”
Chris Kempczinski, who was previously serving as president, will take over from Easterbrook. The company said in a press release that “he is the best leader to set the vision and drive the plans for the company’s continued success.”
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