McDonald's new Dollar Menu means massive price cuts for customers
- McDonald's new value menu will slash overall menu prices by 15%, according to analysts.
- The new "$1, $2, $3 menu" will offer deals at three price points.
- The revamped version of the Dollar Menu rolls out in early January.
McDonald's much-anticipated new value menu means massive prices cuts for customers.
Credit Suisse found in "anecdotal pricing checks" that McDonald's upcoming "$1, $2, $3 menu" will result in a roughly 15% price reduction across the chain's the full menu.
"MCD's new 1,2,3 value menu appears geared towards recovering this traffic, which is likely to partly come at the expense of check," analyst Jason West wrote in a note on Tuesday.
According to West, some items are already being sold at similar prices, leading up to the launch of the new value menu. Others - including Happy Meals - are going to have their prices slashed by up to 25%.
McDonald's is rolling out the new value menu on January 4.
The $1 items include menu offerings such as the Sausage Burrito, McChicken, and Cheeseburger. Items including the 2-piece Buttermilk Crispy Tenders, Bacon McDouble, and McCafé beverages will be sold for $2, and Happy Meals and Triple Cheeseburgers will cost $3.
Executives have admitted that McDonald's has struggled to attract value-minded customers since killing the Dollar Menu in 2013.
While the McPick 2 has helped drive sales over the past year, a new national Dollar Menu is a major move to win over customers looking for value. The company is throwing a huge amount of weight behind the effort, increasing its already massive national advertising budget by 20% starting in 2018.