McDonald's is escalating its value push with new low-priced menu offers set to launch in April, according to the Wall Street Journal.

• Why it matters: The fast-food giant has spent nearly two years trying to rebuild its affordability image after inflation-era price hikes eroded its reputation as a low-cost leader.

Driving the news: McDonald's plans to introduce a new $3-and-under menu and $4 breakfast meal deals beginning in April, WSJ reported today. McDonald's did not immediately respond to a request for comment.

• The breakfast bundle would include a McMuffin, hash brown and coffee.
• The new lineup replaces the buy-one-add-one-for-$1 offer launched last year. The update is dubbed "McValue 2.0" internally.

Flashback: In November, McDonald's said it would absorb part of the cost of its $5 and $8 meal promotions to win back cash-strapped diners — a rare move underscoring pressure on lower-income consumers.

• At the time, traffic from lower-income customers across fast food had fallen nearly double digits, while higher-income visits were rising — a divide executives expected to persist.
• McDonald's revived its Extra Value Meals in September, rolling out new combo deals for breakfast, lunch and dinner after launching its McValue platform in January 2025.

Zoom out: Even as McDonald's promotes bigger, premium burgers like the limited-time Big Arch, it's leaning harder into discounts — reflecting the crosscurrents reshaping fast food.

• Taco Bell rolled out an aggressive $3-and-under menu in January.
• Restaurant prices rose 3.9% over the past year, according to new federal data released Wednesday — keeping pressure on chains to prove value.

The bottom line: The value war across fast food isn't cooling.

The U.S. government has tapped Chubb as lead underwriter for a new insurance program covering vessels willing to travel through the Strait of Hormuz.

• Why it matters: Trade flow has essentially stopped in the strait amid rising security risks tied to the Iran war. The critical route carries about 20% of the world's oil in typical times, and the disruption has triggered a spike in global petroleum prices.

How it works: The U.S. International Development Finance Corporation's new $20 billion reinsurance program is designed as a federal backstop for shipping through the strait, absorbing a share of extreme losses to encourage private insurers to write coverage.

• Publicly traded Chubb would issue primary policies to shipowners.
• Behind Chubb, DFC — alongside other participating reinsurers — would provide up to roughly $20 billion in reinsurance capacity on a rolling basis, according to a statement.

Yes, but: "Insurance may help at a high level, but ships won't move if crews fear for their lives," CNBC notes.

🪧 Leaders of a high-profile boycott against Target announced they are ending the yearlong protest sparked by the retailer's decision to scale back some diversity, equity and inclusion efforts. (Axios)

🥫 Campbell's cut its profit outlook to its lowest level in a decade as consumers shunned snacks while supply constraints weighed on fresh baked goods sales. (Bloomberg)

🎮 Microsoft said it will send video game developers prototypes of its next-generation Xbox console in 2027. (CNBC)

Nintendo shares are getting some extra life thanks to the surprise success of its new Pokémon game, Axios' Alex Fitzpatrick writes.

• The Japanese gaming giant's U.S. ADRs closed up 6.7% today on the runaway success of Pokémon Pokopia — a kind of Minecraft/Stardew Valley mash-up set in the Pokémon universe.

Physical copies of the hit Switch 2 game are hard to come by, with some retailers and resellers jacking up prices above the $70ish MSRP.

• The stock bump is super for Nintendo, which faces skyrocketing prices for computer memory sparked by the AI rush.