James R. Cantalupo. Cantarupo succeeded Greenberg as CEO in January 2003. Recently retired as CEO of McDonald's International, his job now was to restore sales and profit growth company wide. With his arrival, the company announced its first quarterly loss since going public in 1965, almost 40 years before.When the board brought him back to replace Greenberg, Cantalupo acted quickly to undo some of the high-profile projects of his predecessor. He killed a $1 billion technology effort, code-named Innovate, that had been envisioned a global digital network linking 30,000 McDonald's restaurants to headquarters and vendors. "We know we need to make changes," Cantalupo said, but"We don't In his letter to shareholders for the 2002 intend to throw capital at problems McDonald's Annual Report, Cantalupo announced, "We are targeting a lower earnings growth rate. Given the nature and size of our business, the prior earn ings per share growth target in the 10 percent to 15 percent range is no longer in short, McDonald's is in transition from a company that emph asizes realistic adding restaurants to customers" to one that emphasizes"adding customers to restaurants 22 He made investors happy by slashing capital spending by 40 per cent largely through closing poorer performing restaurants and adding fewer new restaurants. He also raised the dividend 70 percent Cantalupo and his team addressed mounting customer complaints about slow drive-through service and surly employees Efforts were made to improve the of burgers and promote salad entrees, while eliminating"super sizes" fries and soft drinks these latter two menu moves were designed to placate c blaming obese consumers on burger sellers. The attractiveness of the new low-growth policy of Cantalupo was fully evident in summer and fall 2003 when the stock price rose from $18 to over $24 by October On April 19, 2004, a calamity of no small moment occurred. At a glob convention of McDonald's franchisees in Orlando, Fla., just before he was to make opening remarks about his successful 16-month campaig to restore and growth, Jim Cantalupo and died of an apparent heart attack, McDonald's board quickly named 43-yearold Charlie Bell top Bell was an obvious having been president and chief operating officer choice, since late 2002 unbelievable double whammy when soon Then the company faced an almost after Bell was named CEO he was diagnosed with colon cancer and had to resign in November to focus on battling the disease