McDonald's new "dollar" menu to intensify 2018 price war (MCD, YUM, DNKN)

McDonald's new

McDonald's new "dollar" menu to intensify 2018 price war (MCD, YUM, DNKN)

McDonald's USA president Chris Kempczinski reportedly said, "We have lost a number of our customers over the last few years because we didn't have a compelling value proposition".

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.

"People ask the question: Who orders from the value menu?" Taco Bell, the Mexican-themed chain owned by Yum Brands, is responding with what it calls its "biggest value push in company history".

It's the first time Happy Meals have been included on a value menu, according to McDonald's. McDonald's said customers visiting its restaurants for deals also bought pricier items on the menu which helped boost overall sales.

The company hopes to expand to 4,000 restaurants by the end of 2018. "You have to make sure it's something we can sustain", he said in an interview.

McDonald's shares climbed as much as 2 percent to $174 in NY on Tuesday, in the biggest intraday gain in more than two months.

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Beginning Jan. 4, McDonald's will launch its $1 $2 $3 Dollar Menu at locations nationwide, replacing its McPick 2 Menu - the latest major step for the Oak Brook-based fast-food giant as it seeks to win back customers lost to competitors in recent years.

To the details: For $1, McDonald's customers will be able to buy a sausage burrito, a McChicken sandwich, a cheeseburger or, as is the case now, any size soft drink. For $2, one can buy two piece buttermilk crispy tenders, Sausage McGriddle, a Bacon McDouble, or a small McCafe drink. Sign up now at tulsaworld.com/subscribe.

Over the a year ago, 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.

Company officials said its value packages ($1 menu foods and $5 boxes) are huge sales drivers for the company.

"We didn't need fries to make it attractive", he said.

At Taco Bell, the new items will stagger throughout 2018 alongside the current $1 menu. The menu will include nacho French fries and a new "stacker" quesadilla - beef and cheese in a folded flour tortilla. Taco Bell CEO Brian Niccol told Business Insider. "We choose to lean into it".

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