McDonald's Dollar Menu fails to boost sales

McDonald's says its Dollar Menu is "a tasty way to fill up for less"but those deals could be eating into the company's profits, analysts say.

On Friday, McDonald’s reported a higher profit for its first quarter but its comparable sales worldwide fell 1% during the period and the chain said comparable sales were expected to dip again in April.

It was the first quarterly decline in a decade in sales at restaurants open at least 13 months.

Observers feel the Dollar Menu are affecting profit margins and say it's rankled some McDonald’s franchisees.

But company executives aren't planning on deserting the cheaper option.

"That battle for market share has become so critical for the long-term health of business, we're willing to sacrifice that margin,"Peter Bensen, McDonald's chief financial officer, said in a statement.