Sherwood
Wednesday Oct.23, 2024

💊 Walmart’s Rx delivery

Coming for CVS’s cake (QualityHD/Shutterstock)
Coming for CVS’s cake (QualityHD/Shutterstock)
Presented by

Hey Snackers,

Sorry, plane spotters: Meta suspended accounts that track the private-jet journeys of celebs including Taylor Swift, Elon Musk, and Kylie Jenner. Now the PJs are even more private.

Stocks barely budged yesterday, but McDonald’s plunged after market close when the CDC said its Quarter Pounders were linked to a deadly E. coli outbreak in the US. Starbucks shares also slid after hours when the chain reported its sales slipped for a second straight quarter.

DOORSTEP

Walmart moves into Rx delivery as retailers race to capitalize on the pharma-chain crisis

Prescription tracker… Walmart launched prescription-drug deliveries in six US states yesterday and said it plans to widen the program to 49 states by the end of January (North Dakota has restrictions). By that time, America’s largest retailer says its 4.6K US stores with pharmacies will allow it to deliver to 86% of households in as quickly as 30 minutes. The move keeps the rollback retailer in step with its arch nemesis, Amazon, which has also been widening its med-delivery business.

  • More, dashed: Customers can tack their prescriptions onto larger Walmart orders like groceries, home goods, or bikes. The Rx delivery service costs $10, but is free for Walmart+ subscribers.

  • Copycat: It didn’t take long for Walmart to match its rival’s prescription maneuver. Amazon said this month it’ll grow its same-day script-delivery biz to 20 cities — covering 45% of US customers — by the end of next year.

  • Getting healthy: 12% of Walmart’s US revenue comes from health and wellness, a fraction compared to groceries’ share of 60%. Earlier this year, Walmart shuttered all 51 of its health clinics and its telehealth biz.

Pharm-upheaval… Walmart and Amazon are both jumping into the scripts biz as retail pharmacy experiences some extreme side effects. A mix of pandemic aftershocks, understaffing, and customer frustrations with locked-up toothpaste have chains reeling. CVS announced 3K layoffs this month, adding to 5K last year, and it’s closing 900 stores. Walgreens, which said a quarter of locations aren’t profitable, is shuttering about 1.2K stores over the next three years. Rite Aid, which emerged from bankruptcy last month, has closed 500+ locations.

Prescriptions are prime recurring revenue… 131M Americans, or 66% of all US adults, use prescription drugs. Capturing that steady revenue stream could mean big bucks for Walmart and Amazon, especially while traditional pharmacy chains are struggling.

Presented by Mode Mobile
Mode Mobile cell phone in pink convertible

Could this be the biggest disruption to Smartphones in the past 15 years? 📲

💥Heads up! There's a new disruptor in smartphones: Mode Mobile. Mode can turn your phone from a cost into an income source — and investors are watching the launch of the company’s pre-IPO offering.1 

🤳Mode saw 32,481% revenue growth from 2019 to 2022, ranking them the #1 overall software company on Deloitte’s most recent fastest-growing companies list. Mode’s flagship product EarnPhone, a budget smartphone, has already helped consumers earn & save $325M+.

🫴 Mode’s Pre-IPO offering1 is live at $0.25/share — 20,000+ shareholders already participated in its previous sold-out offering. There’s still time to get in on Mode’s pre-IPO raise and even lock in 100% bonus shares2… but only until their current raise closes for good. Claim this exclusive bonus while you can!3

McPolitics

McDonald’s said it doesn’t take sides as POTUS candidates make their final voter push

Stay gold, Ronnie boy… McDonald’s sent a letter to employees saying it doesn’t endorse POTUS candidates: “We are not red or blue — we are golden.” Some customers threatened to boycott the nuggie maker after former President Donald Trump on Sunday worked the fry station at a McD’s franchise in the swing state of Pennsylvania. McDonald’s acknowledged that its brand has become “a fixture of conversation this election cycle.” It also said it’s proud of VP Kamala Harris’ “fond memories of working under the arches,” which Harris has mentioned on the campaign trail. (FYI: 1 in 8 Americans has worked at a McD’s.)

  • McFranchise: Because the vast majority of McD’s restaurants are owned by franchisees, owners sometimes make decisions that customers pin on corporate.

  • Not just the election: McDonald’s said the Israel-Hamas war caused a “meaningful business impact” as franchisees in the Middle East weighed in on opposing sides.

Frying up favor… Both candidates are courting working-class voters, trying to encourage the demo to show up to the polls for them. Data shows lower-wage workers are less likely to vote than higher-income ones. That push shows up in their agendas: Harris has made expanding the child tax credit and cutting middle-class taxes central to her campaign, while Trump’s pushing for income-tax breaks and lower home-energy bills. The day after Trump’s appearance at McDonald’s, Harris said she wanted to raise the federal minimum wage of $7.25/hour. Fast-food workers have staged hundreds of strikes in recent years, and this year won a $20 minimum wage in California.

It’s a battle for relatability… The final push for voters is being waged at American fast-food spots. Trump’s running mate, JD Vance, visited a doughnut shop this summer while Harris’ running mate, Tim Walz, hit up Nebraskan sandwich chain Runza. Politicians want to win the “Look, they’re just like us!” contest, and for companies that can cause wanted — or unwanted — attention.

Presented by Mode Mobile
Purple sign announcing that Mode Mobile is the fastest growing software company in North America

Mode Mobile saw 32,481% revenue growth over 3 years with this smartphone innovation đź‘€

⏰ We spend over 30 hours a week on smartphones. Mode monetizes this usage, turning phones into potential income generators. It mirrors what Uber and Airbnb did with cars and homes — and it’s also a $1 trillion market opportunity.

🫴 Mode’s Pre-IPO offering1 is live at $0.25/share — lock in up to 100% bonus shares2 while the raise lasts.3

What else we’re Snackin’

  • Former Abercrombie CEO Mike Jeffries was arrested on charges related to sex trafficking and interstate prostitution.

  • GM stock revved up after the Chevy maker sped past sales-growth expectations and raised its guidance on strong US demand.

  • Peloton will sell its techy bikes at Costco. The struggling spin icon has been pivoting to third-party retailers like Amazon and Dick’s Sporting Goods.

  • Glasses giant EssilorLuxottica said that Meta’s Ray-Ban smart glasses are the best-selling frames in 60% of its European stores.

  • Target will cut prices on 2K more items as it competes with Walmart to lure holiday bargain hunters.

  • Apple’s recent $3T valuation has spurred a series of impressive raises among smartphone innovators — and ModeMobile’s pre-IPO offeringÂą is no exception. It’s now live at $0.25/share — lock in up to 100% bonus shares² while the raise lasts.Âł

Snack Fact of the Day

Over 80% of EV owners also own a gas-powered car

Wednesday

  • Existing-home sales

  • Fed Beige Book

  • Earnings expected from Boeing, AT&T, Coca-Cola, Hilton Worldwide, NextEra Energy, TransUnion, Tesla, IBM, T-Mobile, Whirlpool, Mattel, and Western Union

Authors of this Snacks own shares of: Amazon, CVS, GM, Starbucks, Tesla, and Walmart

Advertiser's disclosures:

Âą Mode Mobile currently has no formal plans for an IPO.

² A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+.

³ Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.

Past performance is no guarantee of future results. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns.

DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.

Get Your News

Subscribe and thrive

Snacks provides fresh takes on the financial news you need to start your day. Chartr provides data visualizations on business, entertainment, and society. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.