McDonald's new 'dollar' menu to intensify price war in 2018

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In October, it attributed a rise in a key sales figure during the third quarter to its $1 sodas and a two-for-$5 promotion called McPick 2.

Be ready to welcome the New Year with a new dollar menu from your favorite McDonald's.

McDonald's nixed its Dollar Menu back in 2013, much to customers' chagrin.

This includes soft drinks of any size, the McChicken, a cheeseburger and the sausage burrito.

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It's the first time Happy Meals have been included on a value menu, according to McDonald's. But the move hurt sales as customers went elsewhere for low-cost fast food. Plus, there's competition for customers' stomachs from other players, whether its fast-casual chains or supermarkets that have created dining areas.

"The "$1 $2 $3 Dollar Menu" will become a permanent part of the McDonald's nationwide menu starting January 4, the Oak Brook, Illinois-based company said.

"We built this menu with variety and value firmly in mind", said Chris Kempczinksi, president of McDonald's U.S., in a statement. "We expect this to win back customers who've been disappointed", McDonald's USA president Chris Kempczinski said.

Taco Bell plans to add 20 new items to its existing dollar menu throughout 2018, including previously limited-release test market items. Some analysts are calling it "value menu wars 2.0"-that's more like an opening hail in the comparatively static industry of fast food".

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At the same time, McDonald's is increasing its upscale offerings. It is the most recent a huge steps taken by the Oak-Brook based giant fast food company for drawing back its customers those got lost to its competitors in the past few years.

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.

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

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