Please ensure Javascript is enabled for purposes of website accessibility

Subway and McDonald's Join the Parade of Restaurants Offering Free Delivery

By Rhian Hunt - Mar 25, 2020 at 4:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

McDonald's deal will last two weeks, while Subway’s is currently open-ended.

With upward of 191 million Americans under government orders to stay home as much as possible to stem the spread of the COVID-19 coronavirus, Subway and McDonald's (MCD 2.46%) have both announced that they'll be temporarily offering free delivery. McDonald's promotion starts today and continues through April 6; Subway is only saying its offer will be available for a "limited time" -- its customers must use the promo code "SUBWAYNOW" when ordering.

A McDonald's restaurant in Ohio

Image source: McDonald's

Subway is offering free delivery via multiple services, including Grubhub (NYSE: GRUB), Uber Eats, Seamless, Postmates, and DoorDash. Some of those providers may also offer contactless delivery; Subway said it urges customers interested in that to communicate their request directly to the delivery service.

In a Facebook post, McDonald's said its $0 delivery fee would apply to any McDonald's order of $15 or more that uses Uber Eats or DoorDash.

The chains are apparently aiming to catch up with a number of their quick-service peers, among them Taco Bell (NYSE: YUM), Del Taco (NASDAQ: TACO), and Chipotle Mexican Grill (NYSE: CMG), all of which have already rolled out similar delivery deals to meet the needs of customers during this period of social distancing.

Still, McDonald's promotion is set to have a considerably shorter duration than some other brands' offers. KFC, for example, will deliver free via Grubhub through April 26. Shouldering the cost of delivery naturally cuts into the profit margins of the restaurant companies themselves, which is why they are limiting their offers. While Grubhub recently announced it's suspending $100 million in commissions to help clients navigate the coronavirus downturn, most of these benefits are aimed at small, independent restaurants rather than the major chains. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

McDonald's Corporation Stock Quote
McDonald's Corporation
$252.96 (2.46%) $6.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.