McDonald's (MCD) Management Switch-Up Could Kill the Magic, Telsey Advisory's Derrington Says - TheStreet.com

NEW YORK (TheStreet) -- McDonald's  (MCD) posted better-than-expected earnings and revenue for the 2016 third quarter, partly due to CEO Steve Easterbrook's direction since he took over in March 2015, Telsey Advisory Group's Bob Derrington said on CNBC's "Squawk on the Street" on Friday morning. 

The new CEO brought back all-day breakfast to the restaurant, improved its ingredients and has been working to re-franchise restaurants. 

Easterbrook's role in improving the company's relationship with franchisees and making them happy is a "very, very important point," Derrington said. 

"I think ultimately we view Steve Easterbrook as a change agent and it's his ability and the team's ability to better communicate with the franchisees. You've got to get them on board and keep them on board. He's going to have to continue to work with them and his team to get them to pull the boat in the right direction," he explained. 

However, McDonald's has had a number of executive shake-up announcements recently. 

McDonald's USA President Mike Andres and McDonald's CFO Karen King plan to retire at the end of the year, the Wall Street Journal reported.   

Head of the Markets Division David Hoffman, Chief Administrative Officer Pete Bensen and a senior vice president of customer experience Erik Hess have also spoken about leaving the company. 

Investors need to "keep an eye on" these changes, Derrington said. 

"That may change some of the chemistry and some of the effectiveness and that's going to have to be something that we keep an eye on," he concluded. 

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