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McDonald’s Unveils New Dollar Menu

In early January, the new menu will highlight $1, $2 and $3 items.
December 6, 2017

​OAK BROOK, Ill. – McDonald’s is poised to lob the first shot in the fast-food price war of 2018 with its announcement this week of a new dollar menu featuring $1, $2 and $3 items, MSN Money reports. The burger chain initially discontinued its Dollar Menu in 2013 after franchisees complained that items like McDouble cheeseburgers for a buck ate into their bottom line. Its “Dollar Menu & More” replaced the dollar menu but didn’t capture customer interest.

The new discount menu will launch on January 4 with $1 any size carbonated beverages and cheeseburgers; $2 bacon McDoubles and small McCafe beverages; and $3 Happy Meals and triple cheeseburgers. McDonald’s value menu of McPick 2 for $5 will stay on the menu board.

“You always have to have value as part of the equation,” said Chris Kempczinski, president of McDonald's USA. In October, McDonald’s said nearly all U.S. operators approved of the chain’s plans, including the new discount menus, to turnaround slow sales.

“They are really killing it with dollar beverages and the McPick 2,” said Bob Goldin, partner and co-founder of Pentallect Inc. Goldin pointed out that its value menu has been driving McDonald’s sales.

Other fast-food chains have upped their value menus too, with Taco Bell rotating around 20 items through its $1 value menu and Subway offering six-inch sandwiches for $2.99. “They are really stuck in a value trap,” Goldin said. “There is going to be tremendous pressure to raise prices.”