They will supplement McDonald's current value offers such as McPick 2 where customers can pick two items from a list for $5 - including Big Macs, fish filets and 10-piece chicken nuggets.
McDonald's Corp. said on Monday it will introduce new menus with $1, $2 and $3 items in early January as restaurants battle to win USA customers who have come to expect deals on fast food.
The new menu will offer $1 items like sausage burritos, McChicken sandwiches, cheeseburgers and soft drinks of any size.
A former restaurant operator of McDonald's, Dick Adams, says that despite the value menus are losing a balance in general for franchises, those have seen their revenues and also their voice in the time of company diminish in late years.
McDonald's dumped the original Dollar Menu, with items costing $1, about four years ago as franchisees complained that their profits were squeezed by a rise in ingredient costs.
The fast-food industry is generally cutthroat when it comes to price.
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"You always have to have value as part of the equation", Chris Kempczinski, president of McDonald's United States of America, said in an interview.
The company had dropped its popular "Dollar Menu" in 2013, and replaced with "Dollar Menu & More", which failed to draw more customers with its higher prices. We expect this to win back customers who've been disappointed. Plus, there's competition for customers' stomachs from other players, whether its fast-casual chains or supermarkets that have created dining areas. It called that menu the Dollar Menu & More. More recent was the customizable McPick 2, but that wasn't offered nationally.
Howard Penney, managing director at Stamford, Conn. -based research firm Hedgeye Risk Management, said McDonald's $1-$2-$3 Dollar Menu is a way to give diners choices and still drive up sales.
At the same time, McDonald's is increasing its upscale offerings.
McDonald's stock closed at $170.65, down $2.22 or 1.28%, Monday.