McDonald's re-emphasizes Dollar Menu

In the midst of its first soft sales patch in nearly a decade, the McDonald's is re-emphasizing its Dollar Menu, a 10-year-old idea that became the linchpin of the last turnaround in its U.S. business. The chain is shifting ad dollars to products for $1 and introducing new items to what's been a relatively staid assortment, including the two-patty McDouble, a fried chicken sandwich, yogurt parfait and side salad.

Analysts credit the renewed focus on the Dollar Menu with slowing what could have been a more rapid sales decline, but they underscore that the environment is more competitive than ever. Burger King and Wendy's are hitting hard on value and advertising premium items. The key for McDonald's, experts say, will be introducing compelling new products at attractive prices that keep customers like Kurzatkowski coming through the doors.

Although Dollar Menu sales generally comprise just 13 to 15 percent of McDonald's sales in the U.S., the offerings do drive traffic to stores, where customers sometimes buy a more expensive product.