Kraft Foods Group's Chief Executive Officer Tony Vernon has resigned from his position-the announcement comes as the company reports sluggish profits and sales.
"When you announce your retirement in 12 days, you were probably pushed out," Edward Jones & Co analyst Brian Yarbrough said, according to Bloomberg Businessweek.
"As far as performance, they definitely haven't hit their targets."
Although the company's shares rose 2.4 percent to $60.98 following the announcement, overall it has struggled to maintain growth-sales are said to remain the same this year with profits decreasing by 31 percent, the site also reports.
Many analysts noted the company's slow decline following a 2012 disassociation with Mondelēz International, an international food and beverage conglomerate. While Mondelēz has expanded across Europe and other regions, Kraft Foods has mainly focused on operations within North America.
Mondelēz and another company, D.E Master Blenders 1753, were recently probed by European Union antitrust officials concerned about their plans to merge and eliminate regional competition.
For Kraft, however, the focus remains on expanding growth-Chairman John Cahill is said to pick up Vernon's position. The former CEO of Pepsi Bottling Group will spearhead the rollout of the company's newest initiatives.
"The board and Tony agree that we need to accelerate the pace of change," independent director Mackey J. McDonald told Bloomberg Businessweek.
