McDonald's revives Dollar Menu name with $1, $2 and $3 items

Angelica Greene
December 7, 2017

Other fast-food chains likely are taking note of McDonald's new value menu and will respond accordingly if it proves successful, Riggs said.

Taco Bell is doubling down on its dollar menu, saying it plans to add at least 20 more items to the 3-year-old value menu over the course of 2018.

McDonald's executives in October said nearly all of its US operators support its ongoing turnaround plan that includes the new value menus. The demise of the Dollar Menu was seen as a contributor to a sales slump that lasted two years.

Since the end of the Great Recession, quick-service restaurants like McDonald's have helped the overall restaurant industry eke out a meager growth rate in visits of about 1 percent, Riggs said. "You have to make sure it's something we can sustain", he said in an interview.

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

McDonald's announced on Monday that it will introduce new menus with items priced at $1, $2, and $3 in early January.

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The new menu will offer $1 items like sausage burritos, McChicken sandwiches, cheeseburgers and soft drinks of any size. And the company's buttermilk chicken tenders, which sold out last month after a brief run, are returning to the menu - with an order of two costing $2.

Steve Easterbrook, who became CEO of McDonald's more than two years ago, has led the charge on a wide range of new initiatives, including the launch of all-day breakfast, the rollout of delivery and curbside pickup, and the launch of Signature Crafted sandwiches. For a limited time, get a digital subscription for just $3.95 a month.

Over the previous year, some of the most unusual items have included a Firecracker burrito served with a packet of spicy Pop Rocks, a Forbidden Bowl with black rice, a french-fry loaded burrito and nacho fries. All of the value menus are created to diners flexibility while protecting franchisee margins, the company said.

Taco Bell, meanwhile, is seeking to remain in the mix as McDonald's and its burger rivals at Wendy's and Burger King increasingly look for ways to appeal to the core fast-food customers looking for discounted fare.

At Taco Bell, the new items will stagger throughout 2018 alongside the current $1 menu. In mid-December, the chain is rolling out the $1 Stacker, which features layers of beef and cheese between a grilled tortilla. "We choose to lean into it".

Other reports by GizPress

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