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

The McDonald’s logo is seen outside the fast-food chain McDonald’s in New York
FILE PHOTO: The McDonald’s logo is seen outside the fast-food chain McDonald’s in New York, U.S., October 22, 2019. (REUTERS/Shannon Stapleton)

BY NEHA MALARA AND SHANTI S NAIR

McDonald’s Corp <MCD.N> 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.

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