• Wendy's will offer a $3 breakfast combo meal starting Monday.
• The meal deal follows a similar, limited-time value meal option by McDonald's.
• The deals come as restaurants struggle to win over consumers as diners, particularly those with lower incomes, pull back on spending.

Wendy's will offer a $3 breakfast combination meal starting Monday, as restaurant chains look for new ways to drive sales while consumers pull back on dining out.

The deal will include a small portion of seasoned potatoes and a choice of either a bacon, egg and cheese English muffin or a sausage, egg and cheese English muffin, the fast-food chain said.

The promotion comes as Wendy's rival McDonald's plans a similar yet limited value meal option as it tries to boost traffic. Last week, CNBC reported the fast-food giant's $5 meal deal would be available in stores for only a month, starting June 25.

Consumers have become more selective about where they spend their dollars, and some restaurants have started to see a long expected consumer pullback. Other fast-casual chains have enjoyed strong sales despite higher prices.

As inflation lingers, companies that cater to lower-income consumers have faced a particular challenge bringing in customers.

Wendy's earlier this month reported first-quarter revenue grew a modest 1.1% to $534.8 million. Its same-restaurant sales worldwide grew only 0.9% in the quarter.

McDonald's missed first-quarter earnings expectations last month. Although higher prices have helped the chain's revenue, they have scared away some low-income customers. Chief Financial Officer Ian Borden said the company has adopted a "street-fighting mentality" to compete for value-minded diners.

KFC, Pizza Hut and Taco Bell owner Yum Brands also posted a disappointing earnings report earlier this month, as revenue missed Wall Street estimates. The company cited same-store sales declines for KFC and Pizza Hut.