McDonald's Switches To 'Walk-In-Take-Out' Model In All Company-Owned Restaurants Due To Coronavirus

McDonald's Corporation (NYSE: MCD) is temporarily canceling all seating inside the company-owned restaurants as a precaution against the spread of the novel coronavirus (COVID-19) starting Tuesday.

What Happened

The restaurants will remain open, and customers will have the option of taking their orders out. Other options, including drive-through and home delivery, will continue to function as usual.

"Ensuring the health and safety of our people and our communities is our highest priority as the United States quickly mobilizes to slow the spread of COVID-19," McDonald's said in a statement on Monday.

"Our decisions are guided by expert local and national health authority guidance. Additionally, we are complying with all local and state restaurant restrictions, where applicable."

McDonald's has also decided to suspend all of its PlayPlaces across the United States.

The Chicago-based company controls about 7% of all its stores, while the rest are owned by franchises. McDonald's said that a majority of franchises are likely to follow it in its decision.

"Franchisee leadership completely supports the decision to adhere to social distancing guidelines and ensure that large groups of customers are not gathered together inside our restaurants," National Franchisee Leadership Alliance chair Mark Salebra said in a statement.

"We are committed to our role in supporting the communities in which we do business and protecting the public's health by shifting our operations to Drive-Thru, walk-in take-out and McDelivery."

Why It Matters

The number of confirmed coronavirus cases has risen to 4,661 in the U.S., including 85 deaths at press time, according to data from Johns Hopkins University.

President Donald Trump declared a national emergency on Friday to combat the COVID-19 outbreak. A number of states have restricted businesses, especially bars and restaurants, from serving customers.

Coffee chain company Starbucks Corporation (NASDAQ: SBUX) similarly discontinued all seating inside cafes starting Monday.

Others, including Apple Inc. (NASDAQ: AAPL) and Nike Inc. (NYSE: NKE), have closed all their retail outlets in the country for the coming weeks.

Price Action

McDonald's shares closed 15.88% lower at $149.01 on Monday. The shares added 2.01% in the after-hours session at $152.