McDonald’s is launching a new incarnation of its famed “dollar menu” on Thursday as competition between fast-food chains to appeal to value-minded consumers intensifies.
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The introduction of the “$1 $2 $3 Dollar Menu” marks the first time McDonald’s has used the pricing structure since it discontinued the original dollar menu in 2013. Sausage burritos, McChicken sandwiches, cheeseburgers and any soft drink will be available for $1.
Sausage McGriddles, buttermilk crispy tenders, small McCafe beverages and Bacon McDoubles will be sold for $2. Triple cheeseburgers, sausage McMuffins, the new classic chicken sandwich and Happy Meals will be sold for $3.
“We built this new menu with variety and value firmly in mind,” said McDonald’s USA president Chris Kempczinski.
McDonald’s is one of several fast-food chains turning to discounts to attract customers to its stores. Competitors like Taco Bell, Burger King, Wendy’s and Subway have all revamped their value-based offerings in recent months.
McDonald’s estimates that it has lost roughly $500 million in sales in the five years since the dollar menu’s cancellation, Kempczinski told USA Today last November.
Wall Street analysts are already touting what the promotion’s reintroduction could mean for McDonald’s business. Credit Suisse analyst Jason West predicted the new discount menu could boost McDonald’s sales by 2%, while Instinet analyst Mark Kalinowski said same-store sales could increase 3.5%.