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McDonald's to pause U.S. reopening of dine-in services by 21 days

Published 07/01/2020, 06:15 PM
Updated 07/01/2020, 07:35 PM
© Reuters. The McDonald's logo is seen outside the fast-food chain McDonald's in New York
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(Reuters) - McDonald's Corp (N:MCD) plans to pause the reopening of its dine-in service in the United States by 21 days as the number of coronavirus cases rise in the country, according to a letter seen by Reuters.

The fast-food chain, that saw a 30% dip in global sales in the first two months of the current quarter, has been hurt by the shut down of its restaurants.

During the coronavirus-induced lockdowns, fast-food restaurants had to limit operations, leading to lower sales. Nearly 99% of McDonald's restaurants in the U.S. remain open for drive through, delivery and take-out options.

New cases in the United States have been rising and several states at the center of a new surge in infections have taken steps back from efforts to ease restrictions on businesses.

"Our resiliency will be tested again. COVID-19 cases are on the rise – with a 65 percent increase in infections over the last two weeks," Joe Erlinger, McDonald's U.S. president and Mark Salebra, head of the National Franchisee Leadership Alliance said in the letter.

© Reuters. The McDonald's logo is seen outside the fast-food chain McDonald's in New York

The company's shares were down about 1% in extended trading.

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