Several major brands that target working-class and middle-income Americans are struggling to attract customers.

Why it matters: While much of the market's attention is focused on the booming AI economy, there's a street fight going on among some of the biggest brands for the wallets of value-conscious consumers.

Zoom in: Signs of trouble are emerging for multiple major players:

• 🍕 Papa John's shares plummeted today after the chain reported an 8.3% decline in sales at its North American restaurants open at least a year, telling analysts it must meet the customer "where they are in this challenged environment."
• 🍗 Popeyes Louisiana Kitchen recorded a 5.2% drop in U.S. comparable sales, and vowed going forward to focus on offering "consistent, easy-to-understand value."
• 🎢 Six Flags Entertainment reported a 4% drop in same-park attendance at its amusement parks, though it argued it sees opportunities to expand with consumers "whatever side of the K they might be coming from."

Between the lines: While consumer spending has been strong overall in recent months, elevated gas prices — which are fueling rock-bottom consumer sentiment — are putting pressure on household budgets, forcing brands to compete harder for discretionary dollars.

The intrigue: Burger King — which, like Popeyes, is owned by Restaurant Brands International — enjoyed a buoyant quarter, reporting an 8.5% increase in U.S. comparable sales this morning.

• The chain's marketing and product investments are paying off, helping it gain momentum against rival McDonald's, which posted a disappointing 0.8% increase in U.S. comparable sales as it failed to execute on its value strategy.

💸 The bottom line: Consumers haven't stopped spending. They're just becoming much more selective about where they do it.

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Paramount has reportedly called a timeout in negotiations with the National Football League over broadcast rights fees between the league and CBS.

Catch up quick: The negotiation was triggered by a change-in-control provision in the NFL's contract with Paramount when Paramount merged last year with Skydance Media, Axios' Pete Gannon writes.

• 💰 The league is reportedly looking for at least a 50% boost from its current $2.1 billion a year deal, intending to use the new terms as a baseline for future negotiations with its other partners, including Fox.

The latest: The league and Paramount agreed to pause those negotiations as Paramount deals with legal challenges to its planned $110 billion merger with Warner Bros. Discovery, Bloomberg reports.

🇬🇧 Zoom out: Meanwhile, Paramount's deal for WBD was given the green light today from the U.K.

• It's a major regulatory win for the deal, which is facing a more contentious approval battle back home, Axios' Sara Fischer writes.

State of play: Paramount last month agreed to postpone closing the merger until five days after an antitrust case opposing the deal from a dozen U.S. states is resolved, or until its merger agreement expires in June 2027.

• On Tuesday, a court scheduled a 12-day trial for the states' case against Paramount to begin on March 2, 2027. Paramount was pushing for a trial this fall, as the company's expensive ticking fee goes into place Oct. 1.

🥃 Diageo — whose alcoholic drinks include Johnnie Walker scotch whisky, Smirnoff vodka and Captain Morgan rum — announced a $1 billion cost-cutting plan. The company has been struggling with declining sales. (CNBC)

🛻 Ford says the first model produced on its new low-cost electric vehicle platform will be a pickup called Fathom and have a starting price of $28,350. (Axios)

Jessie Bates III, a safety for the Atlanta Falcons, is expected to sell his pre-IPO stake in SpaceX for a 10x profit with the lockup expiring today, CNBC reports.

State of play: His shares — acquired for about $150,000 in 2022 — are one of several blockbuster pre-IPO investments he's made.

• His portfolio includes stakes in OpenAI, Anthropic, Databricks and Turo, according to Michael Ledo, CEO of the RISE Family Office, which manages Bates' investments.
• The firm focuses on "helping athletes build lasting wealth, become business leaders and build strong families," CNBC reports.

💭 Nathan's thought bubble: The SpaceX share sale should help ease the pain from what is likely to be another middling Falcons season.