CHICAGO, Illinois: McDonald's is overhauling its value strategy by simplifying its menu to offer items priced under US$3, as it seeks to attract cost-conscious customers amid persistent inflationary pressures.

The fast-food chain said its new McValue menu will feature 10 items priced below $3 starting April 21, replacing its current format that requires customers to pair discounted items with full-priced purchases.

Breakfast options will include items such as hash browns and a Sausage McMuffin, while offerings available throughout the day include a small order of fries and a McDouble burger.

Some of these items are already priced below $3 in certain parts of the U.S., but the new approach standardizes the offering across locations and simplifies customer messaging.

The move reflects a broader industry shift toward clearer, more flexible value offerings. Rivals have introduced similar menus in recent months, with Taco Bell launching a Luxe Value Menu in January featuring 10 items under $3, Panera Bread introducing a $4.99 value menu in February, and Wendy's revamping its Biggie Deals menu with bundled offers.

KFC has also added $5 bowls to its U.S. menu. Fast-food chains have increasingly leaned on value menus to win back customers frustrated by rising prices. Government data shows that prices for food away from home rose seven percent in 2023, followed by four percent in 2024 and 3.8 percent in 2025, compared with a historical average of 3.5 percent.

"In all retail, including quick-serve restaurants, ‘value' has become a promotional expectation," said Roger Beahm, an emeritus professor of marketing at Wake Forest University's School of Business.

McDonald's has already experimented with several value-focused initiatives. It introduced a $5 Meal Deal in June 2024 and will roll out a $4 Breakfast Meal Deal alongside the new menu on April 21. The company also launched the McValue menu in January 2025 and later introduced Extra Value Meals, which offer bundled discounts.

"Value matters more than ever to our customers, and we take that responsibility seriously," Alyssa Buetikofer, chief marketing and customer experience officer for McDonald's USA, told The Associated Press.

Buetikofer said customer perceptions of value and affordability have improved since 2024, but feedback indicated a need for more flexibility and stronger breakfast offerings. Half of the items on the new under-$3 menu will be breakfast options.

Franchisees have welcomed the changes. Scott Rodrick, a McDonald's franchisee in California, said the simplified structure should make ordering easier.

"The value proposition is super clear, no deep explanation or mental gymnastics needed to understand where value is on my menu board," Rodrick said.

About 95 percent of McDonald's U.S. restaurants are owned and operated by franchisees, who retain control over pricing.

The strategy comes as fast-food chains balance promotional pricing with higher-margin offerings. While companies continue to introduce premium items, such as McDonald's Big Arch burger or Burger King's Peppercorn BLT Whopper, value remains a key driver of traffic.

Data from Revenue Management Solutions showed customer traffic at U.S. fast-food restaurants rose less than 1 percent in February compared with a year earlier, following declines late last year and in January.

However, rising gas prices linked to the war in Iran may have weighed on traffic in March, potentially increasing pressure on chains to offer deeper discounts.

Some analysts warn that overusing the concept of value could dilute its effectiveness. "If everything is always positioned as a value, then can anything really be a value?" Beahm said.

Experts say chains may need to go beyond pricing to attract customers. Enhancing service, offering unique experiences, or adding perks could help differentiate brands in an increasingly crowded market.

"If it's just cheap food, that's not a winning long-term strategy," said Jennifer Fritch, an assistant professor of marketing at Arcadia University. "The list of demands and expectations is higher than it has ever been, and it's insufficient to try to gain sales just on cost."