Wendy's is introducing a $3 breakfast deal to compete with value meals offered by rivals like McDonald's.

• Wendy's will offer a $3 breakfast combo meal starting Monday.
• McDonald's meal deal is similar to their limited-time value meal option.
• As restaurants face challenges in attracting customers, particularly those with lower incomes, who are cutting back on dining expenses, deals are being offered.

Starting Monday, restaurants chains will offer a $3 breakfast combo meal as they search for new ways to boost sales while consumers continue to cut back on dining out.

The fast-food chain announced that the deal will consist of a small portion of seasoned potatoes and a choice between a bacon, egg, and cheese English muffin or a sausage, egg, and cheese English muffin.

Wendy's rival is planning a limited value meal option to boost traffic, similar to Wendy's $5 meal deal, which will be available in stores for only a month, starting on June 25, as reported by CNBC last week.

Some restaurants have experienced a decline in sales due to consumers being more selective with their spending, while fast-casual chains have seen strong sales even at higher prices.

Companies catering to lower-income consumers have struggled to attract customers due to inflation.

In the first quarter, Wendy's reported a modest 1.1% increase in revenue to $534.8 million, while its worldwide same-restaurant sales grew by only 0.9%.

Last month, McDonald's failed to meet first-quarter earnings expectations. Despite an increase in prices, some low-income customers have been deterred. CFO Ian Borden stated that the company is adopting a "street-fighting mentality" to attract price-sensitive customers.

Earlier this month, KFC, Pizza Hut, and Taco Bell's owner reported disappointing earnings, with revenue falling short of Wall Street estimates. The decline in same-store sales was cited as the reason for the revenue miss.