Employee. And shares of under armour under a lot of pressure, a federal probe of the Accounting Practices. And wall streets record rally on the heels of both the s p and nasdaq the dow is on track for new highs at the open. Well start with that stunning news from mcdonalds, the company has fired Ceo Steve Easterbrook after he spent more than 4 1 2 years on the job. Mcdonalds says he violated Company Policy by having a consensual relationship with an employee the new ceo is Chris Kempczinski, president of mcdonalds usa in an email to employees, easterbrook admitted the relationship violated policy, saying this is a mistake, given the values of the company, i agree with the board it is time for me to move on. Already today, jim, one downgrade, piper to neutral, says changes of this magnitude tend to be disruptive. I think thats why i hate to say this, the stock was down badly on friday. I would like to know more about when and how long they have known this this is one where it is pretty obvious the stock has been under a lot of pressure. Some of it was because of wendys breakfast, some because of the miss domest abically and some because of this, dont know for sure the ceo has Good Technology exposure probably has the franchisees love domestically. But there is so many questions here in terms of what theyre the companys under attack from wendys for breakfast, under attack by impossible burger and burger king, they dropped the morning star burger. The company is challenged on a lot of issues involving loyalty. Delivery, who knows where they really are they have that ecumenical delivery approach. He should be on right here, right now. Chris, the new yeah, thats silly to not come on right now. Hes afraid of us. Chris, just call in. Im not going to ask about what easterbrook did. I just want to know what youre going to do. Just a matter of time, we hope what if the dollar breaks here, jim . What if the dollar breaks in, all of a sudden theyre a completely new International Balance sheet, right can we have more faith than 200 targets . If you come out and talked, i think you would feel great because i think that what happens is when you have one of these incidents and, of course, these are unplanned, so to speak, but you have a successor as opposed to intel, you have a coherent story to tell right now, ought to be thinking about are they in disarray i dont think they are in disarray i think easterbrook was loved. Easterbrook was loved in the media too. All day breakfast. Interesting as well from a government perspective and changing regulations i dont know, you know, that a board is now obviously going to adhere to in terms of employee behavior, regardless of where it is brings to mind brians exit at intel, another consensual that had happened in the past, but once they learned about it, he had to go. Had to go and in this case, mr. Easterbrook, agreeing he made a mistake lam research, stock goes up 100 . Right and, listen, intel, took a while, bob interim, then permanent, it does take it can take some time, particularly these are ceos who conceivably would have been in place for a long period of time. Easterbrook is 52 years old. There was some chatter it was time to move on. Are you kidding me stock is up 100 the decision to throw your life away is not done idly. I suppose not in a world where we know the oldest story in the book, man. The world has changed memo of the ceo is not the way it was never should have been the way it was but it doesnt matter if it is consensual or not, youre the boss it becomes consensual if youre the boss. It means no one, no one, thats it. Everybody is off limits. So look elsewhere. Youre the ceo of youre probably only with colleagues, but you got to really make an effort. Have your friends set you up, whatever, you know there is a lot of dating services go beyond sex go to beyond meat. Go to whatever it is. Ceo dating site. I dont know what to do look, thats irrelevant. What matters is it is not it is not like this wont happen again, conceivably. The earnings might be under pressure. You bring up swan, do we believe that the disruptive ceo succession results in turmoil, operational turmoil . No, mcdonaldsis a place that had a bunch of ceos and that did hurt the some have died on the job. Mcdonalds is a bench this guy has not been there that long hes a consumer Package Goods guy. Look, i think this is a company that where the stock has to be bought if it gets too really way, way discounting the 20,000 people that wendys is hiring, there is why did they do a test in some province of canada on beyond meat and impossible burgers rolled out. By the way, lets understand, these are not these are not vegan and vegetarian, these are people who just dont want the they like the food chain to be changed. By the way, easterbrook did that too. Free range chicken, fresh beef, a lot a million initiatives going at once. He was so hard charging. Whenever you spoke to him, i remember speaking once what is the difference with you . He said i got mojo mojo mojo per share mojo per share he loved that. Mojo per share he adopted it. Well, the mcdonalds story and there is under armour. Beat with the quarterly results, cuts the full year guide on revenue alone. The stock is getting hit as the company does acknowledge it has been cooperating with the s. E. C. And doj in a probe with the Accounting Practices kevin plank is set to step down as ceo in january. You said something on twitter about how this now makes sense, how everything at under armour makes sense. Stock is under a lot of pressure quarter wasnt great, but the stock was actively ill tell you, here is an interesting thing, that theyll deny completely thats what people do. The fact that they didnt reveal this earlier is they only we commented on it as a result of the journal story. It is not in their earnings release. Thats great. The Justice Department is crawling all over their office and they dont release it until today. What do you think, thats some sort of hey, thats a december closeab decloseable event. The stock has been getting hit. How does a company not disclose some sort of an investigation, informal or otherwise, by the s. E. C. Ill calling it illegal, unethical, calling about just disgraceful. Disgraceful you have the Justice Department in there and dont disclose it. You should be immediately issuing a release saying were in trouble on revenue recognition, and we tend to address it it is a disgrace i really think that people are buying that stock on friday. And people are selling and we didnt know about it . Come on, address these theyll have some lawyer at some pr firm who will say im wrong i happen to have unfortunately revenue recognition issue. We had it at the street. What you immediately do is you say, okay, you shine a light on it, we got a revenue recognition you throw everybody under the bus, thats the way the s. E. C. Wants it you disclosed it first you get out ahead of it. They may say i dont know what im talking about. I had the best lawyers in the world and what the lawyers said it is time to fall on your sword, mr. Cramer, you had everyone in the world know you did this perhaps a year from now, it will be over. Well, took about 18 months and the s. E. C. Put out a release that said we were guilty and they realized we werent put out a release soon after saying, hey, we didnt find any guilt, thank you, s. E. C. This is a disgrace having been involved with one of these, i know exactly what theyre supposed to do and what they did is wrong now, i want their lawyers to come on and do the usual fibbing that i see, which says we didnt need to do anything. Lets get that over with have they changed the ceo . What was that about . We dont know he is executive chairman, but youre right. I like that, thats meaningless, it is about money not friends. You dont do it this way everybody knows, their lawyers should come open and explain or someone should come on and explain how the Justice Department could be crawling all over their office and people seeing these people, theyre not the auditors, hey, man, how are you doing . Im from the Justice Department, shut up. Thats what it is like your complaint is with the board, i assume. They have a board they do the board who is on the board mohamed elerian. Listen to me, you should be you have the Justice Department in there, what are they doing when theyre in there . Do you think theyre saying, hey, i love those new sneakers. Here is what under armour had to say in response to the journal story, according to the journal itself, when they actually called in and asked them about it. Began responding, july 2017. Thats great. Accounting practices related to disclosures, they went on to say the company firmly believes that its Accounting Practices and disclosures were appropriate. Your point is a good one, jim. You never know what the decisionmaking tree is, we who says we dont have to disclose this, not something investors want to know seems hard to imagine. They said you got to tell everybody. I said, but i didnt do anything wrong. We didnt do anything wrong. Okay, good tell everybody like, look, it is a horrible thing. To have a revenue recognition problem. It can be criminal but s. E. C. Already referred it to justice i would have disclosed it if i were there in the s. E. C. Had an issue. But justice . The Justice Department thats criminal thats thats called criminal. They made a mistake. I was thinking of tis cldisce when it came to elon musk and you get the Justice Department in because key thing about the Justice Department, do not pick names out of phone book okay they dont say, lets go after this company i dont know i thought this was just outrageous just outrageous. And im waiting for their Crisis Pr Firm to say, no, you see, it is fine. We had we had Justice Department agents in there, but, you know what, they were dressed, they looked like us, what were they wearing under armour clothes think they were in there wearing under armour clothes the mesh you know im not a big yeah, i know the clothing. Where is your sdoes your sonr hes 17 now. Heads up, Justice Department doesnt wear under armour. Were going to see the extent to which this is all addressed on the call. Yeah they ought to address it more important than the than the quarter. All they say on the call so far is they have been fully cooperating with the for nearly 2 1 2 years we began responding back in july of 17 to their request for documents and information, firmly believe their Accounting Practices were appropriate and thats it. They said they are breaking from their typical policy of not discussing regulatory litigation Matters Regarding the investigation by the s. E. C. And the u. S. Zblept theydepartment theyre breaking because the press found out about it david, david, david, the Justice Department, the press finds out, they issue a release that is, like, hey, listen, we missed the quarter. The quarter . The quarter . They not the playoffs. They cut the revenue guide, they do see earnings at the high end. Any idea how thats going to work how do we know they are given the fact they had revenue recognition, can we stipulate that maybe we should question their ability to beat, beat the number lets have a restatement what i wanted to see was the restatement would not affect the numbers, it did not affect the cap. Thats what theyre supposed to do im going to go down there and ill explain the way it works, i like kevin very much, hes a good guy, but there is a way to do it and a way not to do it and theyre textbook about how every major criminal law firm, white collar, tells you not to do it who are they using who are they using ill find out. Will you find out my bet is theyre using they took a coin flip about who to this is crazy. It is crazy. It is not it is fact specific. It is fact specific. It is not fiction specific . My point is that investigations occur and it is a close call, but you dont always feel obligated to disclose once again, youre not obligated, but im talking about the way you do it, if youre what i call a professional company is you disclose because you cannot have Justice Department agents in there remember tenet come on. We spent a lot of time talking about their failure to disclose what about the impact of we dont even know if it is true, what theyll find. Why dont they say, listen. We have done a preliminary and it does not they should say it does not affect our cash position it is a restatement, a shift from quarter to quarter. Thats fine. Give us that i know kevins im sorry that im being so harsh this is the way it goes. Hes on the call now, so hes hes jammed hes jammed. Hes a really good guy. This is just terrible. Yeah. Stock specific stories though well get to the record highs we expect at the open here, well get cramers mad dash, countdown to the opening bell we have downgrades of mcdonalds, verizon, harley, papa johns and some others. More squawk on the street straight ahead woman what does the word partner really mean . Someone i can trust. impact, click who is with me for the longterm. Who understands im dealing with lives, not only livelihoods. That in order to help people, i need more than products, i need Quality Support and insights. Can i find someone who partners with me to achieve peoples longterm success . With capital group, i can. Talk to your advisor or consultant for investment risks and information. All right. First mad dash of the week. Because it is monday talking a little ge, which had a good week last week. Yes, it did i felt there might be profit taking, could fall below 10. But barclays comes out and says, listen, healthcare, very good. Aviation, very good. Starting to get the most important thing, this is really interesting, you have a story that says no nasty surprises from legacy liabilities, then you can start thinking, you know what, maybe larry culps further along than we think. We know 2019 he said was a restructuring year he did say that 2020 could be good youre disregarding tusa . You dont care about him anymore . I think tusa is tusa is right about honeywell. What does that mean he likes honeywell. Hes wrong on ge. David, as you said, he had his chance, right . He had his chance. And right there was when he should have upgraded it. Now hes stuck captain ahab is stuck, right thats how i regard him. You just shouldnt bet against culp it was a nice move, you one, declare victory and move on, david. He didnt. Talking about the jpmorgan analyst. I dont want to joke around hes a really good analyst told you to get out of 3m, told you to get out of this you can argue, even if he upgrades it tomorrow, it would be a good call my point is, every other analyst put together doesnt amount to one tusa, do they . Tusa is in terms of influence. Lets put it this way, culp takes tusa really seriously. This is the chance. Heres what i think is what he did wrong culp, one of the first things he does is call tusa and said, listen, what do you think i should do . He then goes with the tusa game plan, so why not go hold if you got the tusa game plan tusa is that powerful that culp, the ceo, said, listen, i want to know what to do. What do you think . In the meantime, Free Cash FlowGetting Better im not as worried about longterm care because they really have done they scrubbed it very clean the only thing im worried about, david, will the boeing max, will the Assembly Line be then you have a reverberation that knocks down the gdp. Were all watching boeing. So is larry culp. And watching ge this morning as well, which had had some momentum last week we got an opening bell coming up ten minutes from now stick around, a lot more squawk on the street. Heading into retirement you want to follow your passions rather than worry about how to pay for longterm care. Brighthouse smartcare℠ is a hybrid Life Insurance and longterm care product. It protects your family while providing longterm care coverage, should you need it. So you can explore all the Amazing Things ahead. Talk to your advisor about brighthouse smartcare. Brighthouse financial. Build for whats ahead℠ brighthouse financial. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. 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