The pullback: Restaurant Brands International (RBI)—parent of Popeyes, Burger King, and Tim Hortons—and Krispy Kreme both struggled in Q1 as consumers tightened spending on dining out and other nonessentials.

• RBI reported a 1.3% drop in same-store sales, including a 1.1% decline in the US. Adjusted per-share profit rose 2.7% YoY to 75 cents, missing analyst expectations of 78 cents. Revenues rose 21.3% to $2.11 billion but were below the $2.13 billion consensus.
• Krispy Kreme posted a 5-cent adjusted loss per share—down from a 7-cent gain a year ago and in line with expectations. Revenues fell 15.4% to $375.2 million, short of the $384.4 million forecast.

Differing outlooks: Despite the macro pressures, RBI remains upbeat, citing early signs of a sales rebound and maintaining its full-year outlook.

• Krispy Kreme is more cautious. It withdrew its 2025 guidance, suspended its dividend, and is refocusing on priorities like cash flow and profitable US growth.
• The company is also pausing its nationwide rollout with McDonald’s, temporarily stopping at 2,400 locations. While the deal was designed to extend Krispy Kreme’s reach, the company is now reassessing the profitability of the expansion model.

Our take: RBI is pushing hard to regain momentum. Tim Hortons, for instance, gained traction in Q2 with initiatives like freshly cracked Canadian scrambled eggs, a $1 donut-and-coffee deal, and a new breakfast meal co-created with actor Ryan Reynolds.

Krispy Kreme, by contrast, is prioritizing financial stability over aggressive growth.