Hey Snackers,
Southern nights, meet northern lights. Over the weekend, a powerful solar storm brought the ethereal glow of the aurora borealis as far south as Fort Lauderdale, Florida. Even Texas got some Friday-night northern lights.
Markets didn’t move much yesterday as investors bit their nails ahead of tomorrow’s April consumer-inflation report and today’s producer price data. Meme stocks popped after GameStop superfan “Roaring Kitty” posted a drawing of a gamer leaning forward.
McDonald’s ponders a $5 meal deal as cost-conscious consumers cut back on fast food
Searchin’ for a McDeal… and Ronald’s got five on it. McDonald’s is said to be cooking up a $5 meal deal as the fast-food heavyweight hopes to hook price-sensitive customers with a focus on affordability. The rumored special could include a McChicken or McDouble, four-piece nuggets, fries, and a drink. That’d be quite the deal because a McChicken alone can cost as much as $5.60. But franchise owners — who run about 95% of US McDonald’s — appear to be fed up with corporate’s affordability push.
Back for seconds: Earlier this year, McDonald’s reportedly tried (and failed) to get franchisees on board with a four-week promo for a $5 meal combo.
Unhappy Meal: As labor costs rise in states including California (see: $20/hour fast-food wages), owners may be worried about losing money on the offer.
Not so fast… A sizzlin’ deal could help boost same-store sales, which disappointed when the Golden Arches reported last month. McDonald’s isn’t the only fast foodie that’s seen customers with lower incomes ditch the drive-thru after pandemic price pumps. (FYI: fast-food prices rose 28% between 2019 and 2023, outpacing restaurants). Last quarter, sales slipped at Yum! Brands’ KFC and Pizza Hut, and earlier this year Wendy’s said people with lower incomes weren’t visiting as much.
Fast food isn’t just about speed… Convenience is a selling point, but so is price. And when that’s no longer as cheap, folks may find it less savory. In a February poll, a quarter of consumers earning less than $50K/year said they were cutting back on fast food. That could mean they’re eating at home more — a trend McD’s recently called out. It’s not just fast food: last week, Citi CEO Jane Fraser said shoppers with lower incomes were increasingly cautious with their spending overall.
Your house, your rules.
More than a move… Trends in the housing market come and go. But buying your home is as much a personal decision as a financial one — so everyone’s right moment looks a little different.
Power in the process. Whatever your timeline, starting with Rocket Mortgage gives you strong foundations. Mortgage experts, there when you need them — or easy in-app tools for when you don’t. Â
Rocket Mortgage are committed to making home more affordable… which is why they’re offering Sherwood readers lender credit of $1,000* when they lock in a loan using this link. If this is your milestone moment, Rocket can show you what’s possible. Start an application today.
Streamers eye a performance-based pay model for talent — mirroring old Hollywood
Hollywood’s pay model rerun… Streamers are looking to inject some more cash into must-see TV. Streaming’s current pay model, which is light on residuals and isn’t tied to popularity, compensates creatives through upfront deals. Critics have said that receiving the same pay whether or not people watch a show disincentivizes creators from taking care to make shows folks want to watch. Now Apple, Netflix, and Amazon are looking into upending that model, Bloomberg reported. In its place: an old-school approach that doles out big bonuses for the most-binged shows.
Bonus criteria: At Apple, the talent on top shows could reportedly share a $10.5M bonus per season. Apple’s said to be considering things like minutes watched, success at driving signups, and budget relative to audience.
Belt-tightening: Apple’s bonus will shrink for over-budget shows. As budgets soar (ahem: Prime’s $700M “Rings of Power” flop) streamers are slashing spending on labor and content. Disney’s Hulu and Disney+ posted their first profit following cost cuts.
That’s showbiz, kid… As the six months of Hollywood strikes last year showed, Tinseltown’s workforce hasn’t been thrilled with compensation. Now budgets are being cut and less content’s being greenlighted. Between August 2022 and the end of 2023, film and TV employment fell by 26%. The cast of “Blue Bloods” took a 25% pay cut to get renewed. And though unions secured hard-won streaming residuals in their contract deals, just 5% of original Netflix shows in 2022 would’ve met the high benchmark to receive them.
The streaming black box might be opened… Unlike traditional film and TV, streamers have been tight-lipped about viewership data until recently. Netflix only just started sharing viewer data about its 18K+ titles at the end of last year. Implementing performance-based pay could lead to a lot more data about streaming audiences.
Sweetgreen’s putting profits on the side
It turns out $15 might not be expensive enough for a Kale Caesar. Sweetgreen stomachs a $2.50 operating loss on every salad bowl. Still, investors seem hyped about the self-proclaimed tech company’s growing sales last quarter.
See how Sweetgreen plans to harvest profits with the help of bots.
What else we’re Snackin’
Chatty: OpenAI rolled out a fresh iteration of the AI model that powers ChatGPT. The tech co said GPT-4o is 2X as fast as GPT-4 and free. You can also talk to it.
Denied: A federal judge blocked a new Biden admin rule that would cap credit-card late fees at $8. It’s a blow to the president’s fight against “junk fees” as cash-strapped Americans rack up debt.
Meow: GameStop stock spiked as much as 110%, then eased off, after Keith Gill, aka “Roaring Kitty,” posted a cartoon of a person with a game controller leaning forward. AMC and dogecoin also jumped.
Flare: A solar storm knocked out GPS on key farming equipment during a critical time for planting. Much of US farming is automated (picture: self-driving tractors), and the geomagnetic interruption could hurt harvests.
Unlaced: Walgreens shares spiked after a report said it was exploring selling its $8.8B Boots pharmacy chain in the UK. Walgreens recently cut its profit outlook after posting a $6B quarterly loss.
Snack Fact of the Day
Last year, Olivia and Liam were again America’s most popular baby names
Tuesday
WNBA season begins
Cannes Film Festival opens
Earnings expected from Home Depot, Sony, Alibaba, Jack in the Box, and Tencent
Authors of this Snacks own dogecoin and shares of: Amazon, Apple, Disney, and Yum Brands
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