McDonald's is introducing new menus with $1, $2 and $3 items in early January, the company said Monday.
The move from McDonald's comes amid an intensifying fast-food price war with rivals ranging from Taco Bell to Dunkin' Donuts, all battling to win customers who have come to expect deals on food.
McDonald's dropped its popular "Dollar Menu" in 2013 after franchisees groused that selling items like the McDouble cheeseburger for $1 cut into profits. The replacement "Dollar Menu & More" had higher prices, but failed to draw more customers despite heavy marketing.
The new dollar menus, set to debut on Jan. 4, include any size soft drinks and cheeseburgers for $1, small McCafe drinks and bacon McDoubles for $2 and Happy Meals and triple cheeseburgers for $3, McDonald's said. Also on the menu, according to Bloomberg: McChicken sandwiches, a sausage burrito, buttermilk chicken tenders, and the sausage McMuffin with egg.
They will supplement McDonald's current value offers such as McPick 2 for $5. All of the value menus are designed to give diners flexibility while protecting franchisee margins, the company said. Fries are a notable omission from the listings.
"You always have to have value as part of the equation," said Chris Kempczinski, president of McDonald's USA, in an interview.
McDonald's executives in October said almost all of its U.S. operators support its ongoing turnaround plan that includes the new value menus.