McDonald’s new $1, $2, $3 value menu piles up profits

McDonald’s new list of burgers and other items priced at $1, $2 and $3 is aimed at creating value for customers, but it looks like its real value is to the fast-food giant’s bottom line.

The company introduced its new value menu in January with items priced at $1, $2 and $3 in hopes of getting customers to buy more profitable items.

The menu, along with price increases and customers buying premium products, helped boost McDonald’s first-quarter sales.

The idea was that cheap, tiered pricing would put more food and drinks on the list.

But it also held out the hope that customers might gravitate to some of the more profitable, higher-priced choices.

The single-patty cheeseburger and a sausage burrito both came in at $1. But a 2-piece Buttermilk Crispy Tenders and some small McCafé beverages were priced at $2. The Sausage McMuffin with Egg or Classic Chicken Sandwich went for $3 along with Happy Meals for kids.

The strategy is working, McDonald’s says.

The improvements come as McDonald’s is continuing its campaign of modernizing its stores by adding delivery, touch-screen systems and mobile ordering in thousands of locations.

The fast-food chain’s U.S. sales at restaurants open at least a year rose 2.9% for the period, compared with a year earlier.