McDonald's Unveils $1 $2 $3 Dollar Menu

(RTTNews) - McDonald's is bringing back its popular Dollar Menu with $1, $2 and $3 items in its efforts to win back customers amid stiff competition.

The burger giant said Monday that it would introduce its new lineup of low-cost foods nationwide on January 4. The $1 $2 $3 Dollar Menu will include a wider variety of items covering the three different price points with thousands of possible combinations, the company said in a statement.

McDonald's will offer Sausage Burrito, McChicken, Cheeseburger, and any size soft drink for $1, small McCafe drinks and bacon McDoubles for $2 and Happy Meals and triple cheeseburgers for $3. This marks the first time McDonald's has included the Happy Meal on a nationwide value menu.

The company had dropped its popular "Dollar Menu" in 2013, and replaced with "Dollar Menu & More", which failed to draw more customers with its higher prices.

The new menu will supplement McDonald's current value offers, including McPick 2 Menu, where customers can pick two items from a list for $5.

According to the company, all of the value menus are designed to protect franchisee margins.

McDonald's U.S. 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. We expect this to win back customers who've been disappointed... This is a competitive market."

Along with its lower priced items, McDonald's is also increasing its upscale offerings. The company in May unveiled the Signature Crafted Recipes line of sandwiches, which cost $4.99 to $5.19. In September, the company revamped its McCafé brand, adding new hand-crafted coffee drinks.

Among other fast food chains, Burger King offers Value Menu and Wendy's offers Right Price, Right Size Menu.