Hey Snackers,
A Manhattan jury awarded Hermès $133K in trademark-infringement damages after concluding that an artist's MetaBirkin NFTs (think: digital versions of the pricey bags) are more like commodities than actual art. Nobody tell Andy Warhol.
Stocks fell after a mixed bag of earnings. So far, 42 companies in the S&P 500 have issued negative earnings guidance for the first quarter — a historically high share.
Uber reports record revenue as the return to the office tees up the ride-hail biz for gains
5 stars… Uber reported a record $8.6B in quarterly revenue, with CEO Dara Khosrowshahi saying it was the company's strongest quarter ever. That record represents a 49% jump on the year and was made possible by 131M customers hailing 2.1B rides — up from 1.7B a year earlier. Driving the growth:
- Folks: Uber's rides biz, which makes up nearly half its total sales, was the fastest-growing unit last quarter with stretch-limo-sized 82% growth from last year.
- Freight: Uber’s freight biz, which connects semitruck drivers with high-volume loads (like trucks full of Pepsi), did $1.5B in revenue, up 43% from last year.
- Fries: Its Eats delivery unit grew 21% from last year — a slower pace than during pandemic boom times, when it overtook Uber’s rides division.
- Flyers: Uber also got a boost from recently introduced in-app ads (think: beer promo as you book your ride to the bar).
Pass the AUX cord… With Uber setting records, investors are all ears for Lyft's earnings, scheduled for today. The smaller of the two ride-hail whales, Lyft has long focused on moving people (instead of people plus Happy Meals). Lyft’s expected to have grown revenue by 19% from last year, to $1.1B+. But the fact that its prices were typically 10% higher than Uber's could have hurt bookings as people price-toggled between apps.
Diversification can come in clutch… With the return to the office picking up steam — US offices passed the 50%-occupancy mark last week — Lyft's ride-centric biz could be primed for gains. Though Lyft could benefit from the same ride boom lifting Uber, its hyper focus on passengers could be a double-edged sword. Recall: Lyft got hit extra hard during the pandemic as ride-hail volumes plunged, while Uber had its food-delivery biz to fall back on.
Taco Bell’s parent outperformed on Mexican Pizza, Pete Davidson, and the new buzzword: “value”
Mexican Pizza and Pete Davidson… the secret ingredients to Taco Bell’s strong quarter. Yum Brands — which owns Taco Bell, KFC, and Pizza Hut (#KenTacoHut) — delivered expectation-beating sales and profit yesterday, largely driven by its shining star, T. Bell. Covid lockdowns weighed on Pizza Hut and KFC sales in China (KFC’s largest market). But same-store sales at US Taco Bells grew 11%. Some viral hits driving demand:
- Tortilla triumph: Execs said Taco Bell sold a whopping 45M Mexican Pizzas during the four months that the culinary creation was available last year (Dolly Parton is a fan).
- Breakfast with Pete: Taco Bell’s breakfast biz is making a comeback as people return to offices, and an ad featuring Pete Davidson generated breakfast buzz.
A mixed (takeout) bag... Pizza Hut had a solid quarter as consumers recovered from “pizza fatigue” after over-ordering during lockdowns. The Hut also got a boost from demand on delivery platforms and cheaper pizza-novations like Melts, which attracted folks with lower incomes. Some other fast-eating results:
- Burrito bust: Chipotle disappointed as transactions fell for the second straight quarter. It’s hiked prices a lot, but says it hasn’t seen backlash to its inflated bowls.
- McWin: McDonald’s had strong earnings last quarter after lowering prices, as consumers returned for its affordable staples.
“Value” has become more valuable… because both high and low-income consumers are trading down for better deals. While Yum hiked some prices, it kept a mix of affordable items. Yum’s CEO said, “We’re winning because of value.” But Chipotle’s relatively pricey bowls may’ve unwhetted some appetites. Now even it says it doesn’t have plans for more hikes this year.
What else we’re Snackin’
- Unplus: Disney beat expectations thanks to strong spending at its theme parks and resorts, but Disney+ had its first decline in subs. Also: Disney’s cutting 7K jobs as part of a huge cost slashing.
- Botted: Google shares fell 8% yesterday after it showed off its new ChatGPT rival (dubbed: Bard) at an AI event. A day earlier, Microsoft flaunted its new ChatGPT-powered Bing as the chatbot battle intensifies.
- Advil: CVS topped estimates, thanks to strong growth in its healthcare division and solid retail sales (cough: more cold and flu meds). It also said it’s buying primary-care-clinic operator Oak Street Health for $10.6B.
- Noflix: Netflix said its long-promised crackdown on password mooching will kick off in four countries ahead of a US rollout next month. The streamer’s trying to win back $$ from the 100M+ account-sharing households.
- BlockchAIn: AI is the new buzzword, and crypto investors want in. An index of 73 cryptocurrencies with (tenuous) links to AI outperformed the broader crypto market, up 87% in the past week.
Thursday
- Earnings expected from Pepsi, AbbVie, Hilton, Canopy Growth, Toyota, Phillip Morris, AstraZeneca, Ralph Lauren, Duke Energy, Kellogg, and Warner Music Group
Authors of this Snacks own shares: of Disney, CVS, Google, Uber, Microsoft, and Yum Brands
ID: 2729780