🍟 McDonald’s “Calorie Curtain”
![Crowds line up for the opening of Russia’s first McDonald’s in 1990 [Peter Turnley/Getty Images]](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/6S5woLRF3fcdn3FtsGuE1K_1_GettyImages-635964273.jpg)
Hey Snackers,
Whoever named this vessel had foresight: polar explorer Ernest Shackleton’s ship “Endurance” has been found 10K feet under Antarctic waters — 106 years after it sank. One archaeologist called it “the finest wooden shipwreck” he’d ever seen.
It was another roller-coaster day for markets. Stocks rebounded, with the techy Nasdaq surging 3.6%, while oil dropped. Meanwhile, Russians have begun to flee their country to avoid the sting of Western sanctions, and a Kremlin spokesman accused the US of waging an “economic war.”
McDonald’s and Coke pull out of Russia, as the “Calorie Curtain” falls on an already isolated country
From crude oil to canola oil... A day after the US banned Russian oil imports, McDonald's banned its oily food from the country. The Golden Arches is temporarily shutting its nearly 850 locations in Russia, which makes up a tenth of its sales (not nothing). Other Big Foodies followed: Starbucks is shuttering its Russian coffee shops, Coke is suspending its Russia biz, and PepsiCo is pulling some sodas out of the country (but will continue selling essentials like baby formula and milk).
- Why they're pulling a Mosc-out: More than 300 companies have withdrawn from Russia to condemn the invasion of Ukraine. McD’s and other giants that hadn’t exited were facing pressure and criticism (think: Twitter #boycotts).
- Why it took so long: Fast-food operations are complex and provide livelihoods for thousands. McD’s will continue paying full salaries for its 62K Russian workers. Ditto Starbs.
- Another reason: Fast-food chains generally don’t own most of their locations — they sell the rights to franchisees. That’s why Yum Brands is closing only company-owned KFCs, and still hasn’t reached an agreement with franchisees to shut Pizza Huts. But while most global McD’s are franchised, 84% of its Russia locations are company-owned.
The Silicon Curtain... Big Tech companies were some of the first to exit Russia, partly because it’s easier to shut down servers than restaurants. A few examples: Netflix, TikTok, and PayPal have suspended their services, and Apple and Microsoft halted sales.
The Calorie Curtain is symbolic… of the West-East decoupling. McDonald’s was one of the first American corporations to open its doors in Russia during the fall of the Soviet Union. Nearly 40K people lined up at McDonald’s in Moscow’s Pushkin Square on opening day, a symbol of capitalism’s triumph over communism. Thomas Friedman famously said: No two countries that both have McDonald's have ever waged war against each other. Economic ties and trade relations can foster peace, but the era of “food diplomacy” is over.
Biden takes the first real step toward crypto regulation — and it’s boosting Bitcoin
Uncle Sam is crypto-curious... and crypto CEOs are eager to answer his questions. Yesterday President Biden issued an executive order calling for crypto regulation, signaling the federal government plans to take a more active role in regulating digital assets. Crypto-preneurs applauded the news, and Bitcoin prices jumped more than 8%. The order, unpacked:
- Biden laid out six crypto goals: 1. protect investors; 2. keep markets stable; 3. curb crime; 4. stay globally competitive; 5. boost inclusion; and 6. innovate responsibly.
- The #DigitalDollar isn’t dead: Biden also pushed regulators to explore a central bank digital currency. The Fed had already outlined pros and cons of a digital dollar earlier this year.
- Next up… homework. Biden asked the Fed, Treasury Department, and other agencies to study and report on their crypto plans by year’s end.
The ethereum in the room… Crypto has gotten too big to ignore. 40M Americans — about 12% of the population — have invested in crypto, the White House says (more than half of Americans are invested in stocks). Russia’s war on Ukraine has also raised concerns that Russia could use crypto to avoid sanctions, highlighting crypto’s growing geopolitical importance. Russia and China are among the 100+ countries developing their own digital currencies.
Crypto has a “patchwork problem”... and federal oversight could solve it. It’s easier to have set rules coming from one direction than contradictory rules coming from 50 directions. Just ask the cannabis industry: a lack of federal regulation has prevented regional weed businesses from blooming into national brands. Specific crypto rules may not come into focus for months, but crypto companies are still stoked about Biden’s order because full federal regulation could eventually provide a clearer picture for how to do business.
What else we’re Snackin’
- Snip: Amazon said it plans to split its stock 20 to 1, and it approved a $10B buyback. The Zon follows in the footsteps of other big-tech gainers like Apple and Google, which recently split shares.
- 405: The average price of a gallon of gas in California hit $5.44 on Tuesday, the highest in America. Now Gov. Newsom is considering giving CA’ers a tax rebate to ease the #PumpAnxiety of sky-high prices.
- Pill: Pfizer has started studying its Covid antiviral pill for treatment of high-risk children, and expects results by end of year. If they’re promising, it could become the first Covid treatment for kids under 12.
- Resurrection: The computer virus comes free: LimeWire, the 2000s-era file-sharing site popular for pirated music, is returning as an NFT marketplace. It’ll focus on music-related tokens like demos and rare LPs.
- Swindler: Tinder added a background-check feature to help swipers scan matches for red flags, as dating apps get more scrutiny over safety. Meanwhile, Bumble shares popped 48% on an optimistic outlook for the year.
Thursday
- Weekly jobless claims
- February inflation data
- Earnings expected from JD.com, Rivian, DocuSign, National Beverage, LegalZoom.com, and The Duckhorn Portfolio
Authors of this Snacks own: Bitcoin, Ethereum, and shares of Starbucks, Amazon, Apple, Pfizer, Google, Netflix, Tesla, Twitter, and Microsoft
ID: 2073988