Cramer: Care More About New McDonald's CEO Than Easterbrook's 'Bad Judgment'

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McDonald's (MCD) - Get Report announced Sunday that chief executive and president Steve Easterbrook was fired after "he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee," the company said.

Easterbrook also resigned from the board of the burger giant.

He sent an email to employees on Sunday saying that he violated company policy.

"This was a mistake," Easterbrook wrote. "Given the values of the company, I agree with the board that it is time for me to move on."

Chris Kempczinski is taking over the chief executive and president role, said the company. Kempczinski, former president of McDonald's USA, has also been elected to the board.

The price target for McDonald's was lowered to $195 from $224 at Piper Jaffray Monday morning.

The stock has gained 96% with Easterbrook at the helm since March 2015.

In the company's third-quarter earnings release last month, it reported that earnings per share of $2.11 were flat with the prior year. That number missed the Street's consensus forecast of $2.21 per share.

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