Taco Bell, a Yum Brands (NYSE:YUM) unit, is trying to overthrow McDonald’s (NYSE:MCD) once again

We all know Taco Bells is right at the top when it comes to fast food chains. Taco Bell is gearing up for a price war with world’s leading hamburger chain, McDonald’s (NYSE:MCD). It has climbed up the charts this week with its Dollar menu that’s got the crowd cheering. It includes delights from beef quesadillas to mini chicken along with other of its famous Mexican specialties.

Taco Bell, of the parent company Yum Brands (NYSE:YUM), has been quick to realize that most of the fast food customers that come to the restaurant are looking for food that costs less, which brought on a few changes to the price menu. McDonald’s (NYSE:MCD) also worked on the same principal back in 2002 with sandwiches, burgers and other edibles all for the price of $1. This move gave McDonald’s (NYSE:MCB) and edge in its same-store sales for ten years.

However, McDonald’s (NYSE:MCD) failed to act on its own smart move when it introduced its new menu last year with exclusive items going far beyond a dollar. Its $5 McNugget Box was a hit but considering all the fast food lovers in the country, a price such as this couldn’t have gained much revenue. The fast food chain suffered from this scheme and lost its place as a go-to restaurant among its customers. Getting back up from this isn’t easy with such tough competition in the market.

Considering both these giants; Taco Bell and McDonald’s (NYSE:MCD) both are not exclusively famous for the quality of their food; it has always been about the prices they offer. A recent consumer report which targeted over 32,000 consumers states that both companies fall short in the burger and burrito category dropping down to last positions. They were ranked much lower than their rivals in the market, including In-N-out and Chipotle Mexican Grill (NYSE:CMG).

On the other hand, comparing Taco Bell and McDonald’s (NYSE:MCD) to each other, it is clear which is performing better; with Taco Bells positive nine quarters out of the last ten and McDonald’s (NYSE:MCD) constant negative sales growth for the past three quarters, Taco Bells is ahead.

This isn’t the first time that Taco Bell has successfully used one of McDonald’s (NYSE:MCD) own schemes against it. Last March, Taco Bell decided to start its own breakfast line. McDonald’s (NYSE:MCD) dominated this line with its hash browns, coffee and breakfast sandwiches for a while. In April, the Mexican restaurant wiz hired people to endorse the breakfast line; this move seemed to show the market the extent of competition between the two. It went on top of its game to try and overthrow McDonald’s (NYSE:MCD) by dominating the market and attracting more customers.

The fast food industry sees ups and downs every quarter. With such a huge mass of food lover out there, the dollar menu is the picture perfect tactic for getting customers attention and increasing comparable same-store sales. All eyes are on McDonald’s (NYSE:MCD) counter strategy now; it would be interesting to see who the fast food giant bounces back.