Hey Snackers,
Goodbye, robocalls (your wireless provider can now auto-block the 5 billion robocalls yelling at us monthly).
Hello, 4th-straight-big-win. The Dow jumped another 181 points Thursday on word those tariffs on Mexico may get delayed/canceled.
Beyond Meat's sales triple in first earnings report
Pure protein... Beefless burger company Beyond Meat served its first earnings report to Wall Street since last month's IPO (one of the best in years — the stock rose 163% on day #1 of trading). On Thursday, Beyond shares surged another 18% after sales from January-March tripled to $40M from the same period last year.
Profits were as non-existent as cornish hen... Costs were $7M more than revenue, leading to a loss. But Beyond's splurging each buck it has on growth. The WSJ just reported there's a shortage of meat alternatives that juice just like a burger. So Beyond is spending the $253M it raised in May's IPO on new factories (next destination: Holland) to pump out pea-protein patties.
Beyond Meat has the 1st mover advantage... the challenge is keeping it. There's growing demand for a burger that doesn't make you guilty (for eating unhealthy, eating another mammal, and dropping a giant carbon footprint) — 15% of restaurants in the US have "fake meat" on the menu, up from 3% last year. That's attracted some serious competition:
- Nestlé just unveiled the awkwardly-named "Awesome Burger".
- Tyson Foods is developing its own meat alternative.
- Countless startups are trying to turn alt-protein, potatoes, beats, and other grown-from-earth foods into something juicy and tasty (looking at you, Impossible Burger).
Toyota and Subaru car-pool their electric SUV development
What happened to us, man?... Toyota and Subaru announced a partnership to build electric SUVs. Together. Driven by already passed (and future projected) government mandates to fight climate change, electric vehicles (EVs) are expected to be the status quo rides of you later this century. So Subaru's taking care of the all-wheel-drive, and Toyota's got the electrification.
Surprised these two are behind in EVs?... We were too. The two Japanese carmakers are hugely dependent on the American market. Plus, they're surprisingly not leading in full-electric options. Here are more resumé bullets on the future partners:
- Subaru: The #1 choice for Sierra Club members who live within a Harry Potter audiobook's drive of a protected national seashore.
- Toyota: The most profitable car company in the world (by far), with the largest value by market cap, and the first to produce a hybrid car.
EVs need to adapt to American tastes... When it comes to cars, all 50 states are like Texas. They like 'em bigger. SUVs and trucks make up about 2/3 of new car sales in the US today. So Subaru and Toyota are matching present wants with future needs. They're sharing engineers and R&D centers to produce the skeletons of electric SUVs together.
Barnes & Noble put itself up for auction – Now it may have found its buyer
Who gets the rose?... Looks like a hedge fund. Barnes & Noble surged 30% on word it's "near a deal" to be bought by Elliott Management. That's the financial firm that recently acquired the UK's version of B&N (Waterstones).
Your local bookstore is into poetic justice... B&N closed 90 stores in just the last 7 years as Amazon kept being Amazon. But while Oprah's Book Club was busy shifting online, local bookstores (once B&N victims) have made a comeback. Now they're disrupting their original big box disruptor:
- Sales at indie bookstores rose 5% in 2018, while Barnes & Noble's have fallen for 5 straight years.
- Your local shop's curated offerings are beating B&N as fewer Americans head to malls for their 50 Shades sequel.
The “Millennial Turnaround Formula” didn't work... Barnes & Noble tried it. Last year, the chain whipped up a "concept store" in a desperate attempt to become "experiential." It added a really big café with instagrammable food, sandwich-priced lattés, wine, and (of course) craft beer. It also tried tech, investing further in its Nook reader. But not every turnaround plan can work. We'll see what Elliott has in store now.
What else we’re Snackin’
- PrezCast: Spotify signs Barack and Michelle Obama's production company to an exclusive podcast deal
- Scootlove: Bird (the standup e-scooter pioneer) is now in talks to buy Scoot (the sitdown scooter legend)
- ePlay: Google unveils the fancy look and pricing of its gaming subscription — Stadia
- Pivot: AT&T is reversing its streaming strategy: It's combining HBO with Time Warner and Cinemax for $17/month
- Shortened: Jamba Juice is cutting "juice" from the name
Friday
- Revolve's Insta-famous, influencer-driven fashion IPO
- The big May jobs report
Disclosure: Authors of this Snacks own shares of Beyond Meat and Tesla