McDonald's New Menu With A Side Of Inflation

By: CNN (Posted by Kion Hudson)
By: CNN (Posted by Kion Hudson)

(CNN)-- Some incremental changes are coming to a McDonald's menu near you – what are the implications?

Later this month, McDonald's will change some of its Dollar Menu items and it will begin offering an expanded value menu, including 20-piece chicken McNuggets, double cheeseburgers, chicken snack wraps, and Angus snack wraps, according to Reuters.

As we learned in a conversation with the company, McDonald's is focusing its menu on four tiers (not including combo meals):

Premium: $4.50-$5.50+
Core: $3.50-$4.50
Extra Value Menu (new): $1.20 to $3.50+
Dollar menu

In trying to understand the implications of what McDonald's is doing, a restaurant industry consultant and associate of ours had this to say: "I get a kick out of these corporate guys at Wendy's (WEN) and McDonald's pretending they have some magical formula for value pricing. It's 100% driven by food costs and customer behavior."

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