The dollar menu was created by McDonald's as a way of allowing customers to enjoy the restaurant's food without breaking the bank. The dollar menu has failed at its goal as restaurant profits have fallen.

According to the Associated Press the company was not able to raise sales during the first quarter for the first time in 10-years. The company's sales fell 1% last month and are expected to fall again.

McDonald's launched the dollar menu as a clever strategy to keep sales up. The company's idea did not live up to expectations and failed.

The Associated Press reports, "In a conference call with analysts Friday, McDonald's executives insisted that offering cheaper prices was necessary in the current climate. Since the restaurant industry is barely growing, they said McDonald's needs to steal customers away from rivals to grow."

McDonald's is competing with Burger King and Wendy's two rival fast food chains for their share of the market. When the dollar menu was first proposed to the big wigs at Mickey-D's the company was concerned that it would cut into their profit margin. Those in favor of the dollar menu argued that slashing prices on food could only help the business.  

Both Burger King and Wendy's have redone their menus offering food under a dollar in competition with McDonalds.

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