McDonald's cost cutting exercise in US, smacks of India outsourcing. [Representational Image]Reuters

McDonald's, the fast-food giant, announced on Monday that it will cut down the variety of offerings in its Quarter Pounder with Cheese, Premium Chicken Sandwiches and the Snack Wrap range in some select experimental markets.

The move comes after McDonalds reported a 4.6 percent drop in its US sales figures. The fast food giant said that it will simplify its menu and offer just one Quarter Pounder with cheese instead of the existing four.

Varieties include a deluxe Quarter Pounder, a bacon-and-cheese burger, and a Double Quarter Pounder with cheese.

McDonald's also said that it was cutting down on its Premium Chicken Sandwich offerings to just one from the earlier available three variations. Snack Wraps are also going to be cut from three to one.

The cuts will be experimented in Delaware, Little Rock, Waco, Bakersfield, Macon and Knoxville outlets only.

McDonald's is also set to reduce five Extra Value Meal offerings from the current 16 to 11, effective January 2015.

"Our intent is to have a clearer menu board that is easier for customers to absorb. The tests are designed to determine what works and what doesn't within our restaurants by considering the operational experience, customer response, price points and other important information which may inform future decisions," McDonald's said in a statement.

"We'll be clearing the path for future menu innovations," the company added.

Experts say McDonald's should cut the poorly performing items on the menu rather than cutting down on the variety.

"It's a drop in the bucket compared to what they need to do," Richard Adams, owner of Franchise Equity Group, told USA Today.

The burger giant has been facing stiff competition from rivals like Subway, Burger King and KFC. Analysts believe that it's too early to say how the menu cuts would help McDonald's.

"A turnaround will take time given what we believe to be a consumer perception issue around the food," Lynne Collier, an analyst at Sterne Agee wrote in a note to investors.

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