The news: McDonald’s, which has found success using promotions to win back lower-income shoppers, is escalating the quick-service restaurant (QSR) value wars with a new menu featuring items priced at $3 and under, alongside $4 breakfast meal deals, per The Wall Street Journal.

The $4 breakfast deal includes options such as a McMuffin, hash brown, and coffee, while the $3-and-under menu features items like a sausage biscuit and four-piece Chicken McNuggets. The new lineup replaces the buy-one, add-one-for-a-dollar promotion introduced in 2025.

The context: While discount battles have been brewing for years, they’ve escalated this year as several chains rolled out value offerings to compete for price-sensitive consumers—particularly lower-income diners. That urgency is well-founded: A recent YouGov poll found 40% of low-income consumers have cut back on dining out, underscoring the traffic pressure facing the industry.

Recent offers:

Taco Bell in January launched its Luxe Value Menu, featuring 10 items, including a $2.49 mini taco salad, a $2.49 Beefy Potato Loaded Griller, and the $1.19 Cheesy Roll Up.

Wendy’s rolled out a revamped Biggie Deals menu in January, with bundles ranging from $4 to $8. The entry-level option allows customers to choose an entrée—such as a Crispy Chicken Sandwich Jr., Cheeseburger Jr., Bacon Cheeseburger, four-piece nuggets, or Jr. Fry—paired with nuggets, fries, or a small soft drink.

Panera entered the fray last month when it introduced its first value platform, the “Mix & Match Menu,” offering half portions of soups, sandwiches, and salads for $4.99 per item. Customers must purchase at least two items, and each order includes a side of baguette, chips, or an apple.

Together, the moves underscore an increasingly crowded battlefield where major chains are racing to outdo one another on price to protect traffic and wallet share.

Implications for restaurants: Consumers are feeling squeezed by the rising prices of everyday goods, and 37% of diners say they’ve cut back on eating out. That pullback underscores why restaurants need to persuade cautious diners that eating out still delivers clear value.

At the same time, demand for deals remains strong. Roughly 3 in 4 consumers say daily specials, discounts, or value promotions influence where they dine or order takeout, according to the National Restaurant Association’s annual State of the Restaurant Industry report.

That puts the onus on chains to double down on deals or risk losing share to competitors that do. At the same time, operators must balance aggressive pricing with margin discipline, ensuring that value platforms drive incremental traffic rather than simply discounting existing demand.