Jpeg doesn't support transparency, so unless you want to have two images, or all your menu things are square, you should use PNG.
PNG isn't any more pixelated than jpeg anyway unless you've done something to them to make them that way. Like making them lower res or reducing the colors too much.
PNG isn't any more pixelated than jpeg anyway unless you've done something to them to make them that way. Like making them lower res or reducing the colors too much.