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The fast-food giant stated that it is cutting ties with the condiment company after 40 years due to management changes in Heinz. A former Burger King CEO became head of Heinz in June after the company was bought by Warren Buffett’s Berkshire Hathaway and 3G Capital. However, the impact of the change may be tasted more overseas. Right now in America, McDonald’s only uses Heinz products in Pittsburgh and Minneapolis restaurants. In terms of the current shares, McDonald’s shares added 10 cents to close at $94.78 whereas Heinz is now privately held.

In my opinion, McDonald’s decision may due to the disagreement on their business relationships. Changes on management in a company not only change the manager seat, but also possibly changed the direction of the business. In fact, after the struggling burger king being bought by in 2010 and changed CEO, the company cost were subsequently slashed with the chain’s menu being revamped. It has been more formidable threat to long-time McDonald’s under the effect of major marketing campaign. Therefore, it is reasonable that McDonald’s stopped the relationship, however, the former friends gonna be competitors right now since Heinz and Burger King are in the same family.