Wendy's $3 breakfast deal is a shot at McDonald's morning dominance

Wendy's has launched a $3 breakfast meal - as a fast food price war looks to be hotting up.

Chains are reeling from falling customer numbers as Americans fed up with two years of price rises stay away.

The deal includes an English muffin - with either bacon, egg and cheese or  sausage, egg and cheese - and a small portion of seasoned potatoes. There is no drink.

It is going head to head with McDonald's, the undisputed king of fast food breakfasts. 

A sausage and egg McMuffin is around $5 on its own or $8 with a hash brown and a coffee. McDonald's does also offer local deals.

Wendy's $3 breakfast deal he deal includes an English muffin and  potatoes.

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Wendy's breakfast deal comes as McDonald's plans a $5 meal bundle from June 25. 

Customers will get a total of four items - either a McDouble or McChicken sandwich, small fries, small soft drink and four McNuggets.

McDonald's had lower-than-expected sales for the first three months of the year - due to lower-income Americans being put off by higher prices.

So its CEO Chris Kempczinski promised better value for the rest of the year, saying the chain has to be 'laser-focused on affordability.' 

As well as the $5 meal bundle, the chain confirmed  at it earnings that it is rolling out a bigger burger - that won't break the bank.

Bosses said they will be testing it in select restaurants in the US and worldwide to make sure customres like it.

'Our team of chefs from around the world have created a larger satiating burger,' CFO Ian Borden said.

'We'll be testing this burger in a few markets later this year ensuring that it has universal appeal before scaling it across the globe.'

Since bosses think customers want better value - so they are rushing out the new larger burger that they promise will offer 'superior value' to anything at rivals. So while no  price has bee set, it is thought to cost around $6 to $8.

KFC and Pizza Hut saw sales fall year on year too, with owner Yum Brands - which also owns Taco Bell - missing Wall Street earnings estimates.

HOW TO GET WENDY'S DEAL

For the best value in breakfast, order the $3 English Muffin deal online, or via the Wendy's mobile app during breakfast hours. 

Prefer delivery? DoorDash members can get $5 off their breakfast order of $12 or more when it includes either a Sausage or Bacon Breakfast Burrito from May 31 to June 6. Delivery fees will be added.

If you order through the Wendy's app, you can earn Wendy's Rewards™ points to score free food.