McDonald's just announced that its menu will undergo one of its most significant overhauls in years as it puts more emphasis on value meals and in-app deals.

The $5 value meals McDonald's introduced over the summer will become a permanent feature at most restaurants. The $5 meal deal includes small fries, a four-piece Chicken McNuggets, a small soft drink, and the choice of a McDouble or McChicken sandwich. Top rivals Burger King and Wendy's have also offered similar promotions.

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There will also be a breakfast component to its new menu. McDonald's will begin offering a buy one, add one for $1 for breakfast items, including: sausage McMuffin, sausage Biscuit, sausage burrito, and hash browns.

McDonald's will also offering buy one, add one for $1 on lunch and dinners items, including: six-piece chicken McNuggets, double cheeseburger, McChicken, and small fries.

"When it comes to value, we know there's no one-size-fits-all. We've worked closely with our franchisees to create a new platform that will let our customers define value on their own terms," said Joe Erlinger, president of McDonald's USA. "From deals on their personal go-to order to universal favorites like the $5 Meal Deal, we're excited to give fans more ways to save every time they visit one of our restaurants."

The new menu goes into effect Jan. 7.

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McDonald's also said that local restaurants will offer locals deals on its mobile app.

McDonald's saw a massive boost in foot traffic in the first week following the June 25 launch of its $5 meal deal, according to data from Placer.ai. McDonald's is among the restaurants that have said price hikes may have priced out some consumers during a period of high inflation.

With rising labor costs, restaurants said they had to raise prices. But with food costs leveling off, restaurants are rethinking their pricing strategies.