McDonald's to expand US value menu as fast food chains battle for bargain seekers

McDonald's will expand its U.S. value menu early next year as it continues to try to win back inflation-weary customers.

Starting Jan. 7, the burger chain will let customers buy one full-priced item from a limited value menu and get another item on that menu for $1. Items on the menu include a Sausage McMuffin, hash browns, a McChicken sandwich and small fries.

McDonald's will also continue to offer its $5 Meal Deal through next summer. That deal was introduced in June and extended through the end of this year in September. Chicago-based McDonald's said it will also continue to offer local specials and in-app deals like free drinks.

As grocery price inflation has eased, McDonald's says it has seen more diners shifting to eating at home instead of going out. In October, prices for food eaten away from home were up 3.8% from the prior year, while prices for food eaten at home were up 1.1%, according to the U.S. government.

McDonald's $5 Meal Deal, which was matched by rivals like Burger King, helped the chain win back some customers. In the July-September period, its U.S. same-store sales — or sales at stores open at least a year — rose 0.3% from the same period a year ago.