Hey Snackers,
$475,500. Nike's “waffle shoe” just became the most expensive sneaker ever auctioned.
Stocks popped after another hearty serving of earnings reports – now Facebook and Tesla are due up today.
Hasbro surges 10% (it's not just The Avengers)
Save me, Spiderman... Or send Hasbro. The Rhode Island-based toy legend jumped 10% Tuesday after its 2nd quarter earnings. It announced it's shifting some of its toy production to India and Vietnam to avoid tariffs — it aims to reduce the amount made in China from 67% to 50%. But let's talk about its toy collection.
Hasbro's, like, a HUGE Marvel fan... For over 10 years, it's been the exclusive toymaker of Marvel superheroes. The 23 movies made since '08 have helped fill the piggy bank. Now that Avengers: Endgame happened, Marvel has announced "Phase 4" of its superhero content, tailored for Disney+ (which launches in November). Here's a preview of what Hasbro will turn into toys:
- Black Widow, a spy/assassin film with Scarlett Johansson.
- The Eternals, a movie with Angelina Jolie and Salma Hayek about a (wait for it) alien race that protects Earth from annihilation.
- Blade, with Oscar-winner Mahershala Ali as a sunglass-loving vampire hunter.
Hasbro doesn't just borrow Disney's characters... It's expected to extend its Disney deal that includes all Star Wars and Marvel toys (expiring in 2020). But licensing other companies' characters is only 22% of Hasbro's revenue. Its OG characters are actually doing better — franchise sales rose 14% last quarter compared to just 3% for licensed. Give some extra allowance to Play-Doh, Transformers, My Little Pony, and Magic The Gathering.
Starbucks may start selling its mobile app knowledge to restaurants
Technically... the coffee chain reports earnings tomorrow. But we thought this storyline was more interesting: Starbucks wants to turn its app brilliance into a monetized revenue stream. It just invested in tech startup Brightloom with plans to build a software service that covers all the back-end mobile needs of a restaurant.
"Waiter, we'll take it all to-go"... That's the idea for Starbucks — mix together all the core elements of a successful mobile app into a single product, then serve that up to other chains through Brightloom. Here's what the service could include (and who it could replace):
- Loyalty program: LevelUp is the app currently handling your fast-casual loyalty points with some chains, including Just Salad and Pokéworks.
- Mobile payments: Square is the preferred payment enabler of your local fancy-bean coffee shop.
- Customer relationship management: Salesforce is the global giant of CRM software so your go-to spot knows your "the usual" order.
Quote the Joker on this one... “If you’re good at something, don’t do it for free." Starbucks' app has become your best friend's true best friend — 17M Americans are using it, and 40% of Starbucks' US sales happen through it. Starbucks could make money off this venti-sized opportunity — 69% of US restaurants don't even accept mobile payments currently. An app though is crucial for speeding up the line, incentivizing loyalty, and learning more about customers.
Coca-Cola figures out what energy is good energy
Some numbers matter more than others... Take Coca-Cola's revenues last quarter. They were expected by Wall Street to be $9.99B — They were actually $10.0B. But that's not why the stock flew up 6% Tuesday. The real reason is Coke upgraded its sales growth expectations for 2019 from 4% to 5%. For a company as huge as Coke, that extra percentage point is big.
Coke's the 5th most valuable brand on earth... But in the US, it needs a brand-aid. Word's gotten out that carbonated water is probably better for you when not mixed with sweet syrup or aspartame. It didn't experience growth in its classic Coca-Cola brand, and the plan to revive it feels desperate: Bring the 80's back with product placements in Stranger Things Season 3.
Coke has now discovered "good energy"... A key company goal is to "expand energy" (the natural kind). Coke acquired Costa Coffee in the UK for $4.9B, and Coca-Cola Energy has been launched in 14 countries (no ETA yet for the US) — its caffeine comes from natural sources. Plus, its Diet Coke spin-off, aka Coca-Cola Zero Sugar, has grown double-digit percentage amounts for 7 straight quarters.
What else we’re Snackin’
- Guac'd: Chipotle jumps to an all-time high as it completes its first full quarter with its new loyalty program
- Appear: Snap jumps as its comeback continues — daily active users rose 8% to 203M in the last quarter
- Out: Bed Bath & Beyond is cutting 7% of its corporate staff and eliminating the Chief Operating Officer role entirely
- Brakes: Harley-Davidson's profits dropped 20% because it's still working on a way around Europe's tariffs
- Stiffed: DoorDash is apparently taking some of the money you think you're tipping to your delivery driver (shout-out to NYT's "experiential" reporting)
- Skew: Apple reportedly plays favorites with its own apps within the App Store
Wednesday
- Earnings from Tesla, Facebook, Ford, Caterpillar, Las Vegas Sands, and Six Flags
Disclosure: Authors of this Snacks own shares of Tesla.
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