NEW YORK – While McDonald’s is expected to report an increase in first-quarter profit later this week, analysts said the hamburger chain is sacrificing margins to attract value-seeking customers, the Wall Street Journal reports.

Globally, McDonald’s is fighting declines in customer traffic, a result of weak consumer spending worldwide. According to McDonald’s CEO Don Thompson, the value-driven strategy is an effort to compete for budget-minded consumers.

"Value is critical right now," said Lynne Collier, restaurant analyst at Sterne Agee. "The consumer is still very weak, facing higher gas prices, the payroll tax increase and employment barely inching up. Value is the No. 1 driver of traffic, and all these restaurant companies are dying for traffic."

Analysts, on average, estimate McDonald’s Q1 same-store sales to drop 1% globally, with revenue up 1%, according to Thomson Reuters.

"As far as the stock goes, it's all about expectations, and expectations are pretty low because we know the consumer isn't very strong, and March wasn't a good month for the quick-serve industry as a whole," Collier said, adding she expects McDonald’s to outperform its peers. 

However, other QSR chains are mimicking McDonald’s strategy with their own value menus. “There is so much marketing and messaging out there to consumers, it becomes harder to break through and really come up with a compelling offering that drives people to stores, and also builds loyalty," said Ted Marzilli, CEO of YouGov BrandIndex.

McDonald’s added a Grilled Onion Cheddar Burger to its U.S. Dollar Menu at the beginning of the year, and Wendy’s followed with a new “Right Price, Right Size” value menu. Meanwhile, Burger King said it experienced a sales lift in March after it began promoting value in its restaurants.