McDonald's brings back Dollar Menu, but with food for $2, $3, too

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The Dollar Menu is making a McComeback. The new menu, which McDonald's plans to roll out on January 4, is called the $1 $2 $3 Dollar Menu as a return to value offerings for its customers.

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 dropped its popular "Dollar Menu" in 2013 after franchisees groused that selling items like a double cheeseburger for $1 cut into profits.

The new menu will offer $1 items like sausage burritos, McChicken sandwiches, cheeseburgers and soft drinks of any size.

McDonald's is lifting the curtain on its new value menu, which includes the debut of a new chicken sandwich, an opening salvo in what some analysts are calling "value wars 2.0" in the relatively stagnant fast-food industry. But the move hurt sales as customers went elsewhere for low-cost fast food.

The massive fast-food company is mostly a cutthroat when it is about the price.in addition, there is competition for stomachs of its customers from other market players, even if their supermarkets or fast-casual chains, which have formed dining areas.

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"We built this menu with variety and value firmly in mind", said Chris Kempczinksi, president of McDonald's United States of America, in a statement. More recent was the customizable McPick 2, but that wasn't offered nationally.

McDonald's "philosophy is they don't need to win on value, but they can't lose on value, either".

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. The company in May unveiled the Signature Crafted Recipes line of sandwiches, which cost $4.99 to $5.19.

McDonald's Corporation shares rose $1.39 (+0.81%) in premarket trading Tuesday.

McDonald's recent USA recovery has been driven largely by its value offers, said Bob Goldin, partner and co-founder of food industry strategy firm Pentallect Inc.

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