The Best One Yet - “$9B for 2 pumps of hazelnut” — Dunkin’s acquisition offer. James Bond learns from live sports. Big Banks squeeze you.

Episode Date: October 27, 2020

Dunkin’s stock jumped 16% on word it could go private… and we’re extremely skeptical of the deal. MGM is reportedly open to selling off James Bond to the highest streaming bidder, but live sports is a cautionary tale. And Big Banks just told us they’re getting squeezed, so we’re looking at how they’ll squeeze you to make up for it.$DNKN $AAPL $JPMGot a SnackFact? Tweet it @RobinhoodSnacks @TBOYJack @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Learn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks. Daily is Tuesday. October 27, T-Boy Tuesday. Nick? Yep. You doubt a rough day.

It dropped 700 points but just 2.3%. Jack, no stimulus, no happy. That's how the markets work. This, though, happens to be the best one yet. T-B-B-O-Y, Jack, first story. What do we got? Over in Boston. Our buddies at Duncan H.Q are pounding pumps of hazelnut today.

Yep. Jack, I noticed Duncan's stock pops 16% on a deal to go private, which we're extremely skeptical of. I get a large regular with two extra pumps of vanilla. Dahlid, bring out the good stuff. Most-Ey-reform aisle three. For our second story, MGM Studios is reportedly selling the rights to James Bond. We're about the homemade dry martini mix. Jack, James wants to stream from your couch.

He's chill with it, but he's going to leave after the show. For our third and financial story, we're bringing the financial pain. Just rolling it. That was great. Big banks just told us they're getting squeezed, which means one thing and it's not good. Jack, they're going to pass on that painful stuff. Squeeze. I don't think I can hold this long. To you, to us, to everyone.

A squeeze like a belt that's too small, not like a hug from now. Yeah, you know what we're thinking. But Snackers, before we jump into all that wonderful stuff, Jack, a happy T-Boy Tuesday to you. This T-boy Tuesday, Nick and I got to ask, what's in a name? And that's because Jack and I noticed that Europe's Parliament just made a major decision on what plant-based patties can call themselves. So the highest legislative body of Europe is wondering, can a pea protein patty? Can they call themselves a steak? Can they say they're a sausage? Are they really a burger?

They're also wondering if you can even say pea protein patty five times fast in five different European languages. I can barely say it five times fast once in English, but farmers say no. No. Pea protein patty should not call themselves a burger. Only grass-grown good stuff can. Otherwise consumers are going to be confused. On the other end of the spectrum, vegan entrepreneurs are saying, yes, a pea protein. patty should be able to call itself a burger, a sausage, a steak, and consumers won't get confused. And of course, big meat wants these things renamed pansy patties or lame links.

Yeah, it's a lame situation. But Jack and I then followed this decision, which we just found out yesterday. So long as plant protein is clearly labeled vegetarian or vegan, it can call itself steak, sausage, burger, whatever it wants, no confusion. So Jack and I are looking over what Europe just decided, and that made us realize the only thing more confused. that plant-based meat is original real meat. The names of meat that we eat every day, it doesn't make any sense, and yet we're not confused by them,

so what's the problem? Yeah, for example, you know a Frankfurter isn't actually your friend Frank. You know a hot dog isn't actually a dog. And you know a drumstick isn't for a band, it's something you can eat. And hamburger isn't pork, despite the name. It's beef.

But beef is cow, even though it doesn't include the word cow. Just like mutton, which is lamb, even though lamb isn't mentioned anywhere. Chicken is always chicken. Chicken's the only one telling it how it is. And everything tastes like chicken. And yet chicken tastes like nothing. So the takeaway for our buddies in the meat industry, Jack,

the most confusing thing about plant-based meat is the original real animal meat industry to begin with. Let's hit our three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way. The snacks about to hear ain't food. It's air candy. They don't reflect the views of the robber.

family. It's all informational just so you know. We're not recommending any securities. Nope. It's not a research report or investment advice. Not an offer or sale of a security. Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC,

member FINRA slash SIPC. For our first story, Duncan's stock just pumped 16% on Word. It's about to be acquired. Dalling that traffic, am I right? Like a lodge regular with three pumps. I'm northwest of Waltham outside of Weston,

and the next thing I know I got three culottas of my left hand, Jack. Snackers, you don't know the company Inspire Brands, but you probably know it's inspirational brands that it owns. Can we list this off to you, Jack? They bought Arby's in 2011, Buffalo Wild Wings in 2018. They also bought Sonic America's favorite drive-in in 2018, and Jimmy John's last year. The Inspire team looks at the nutrition facts,

and if cholesterol's at a dangerous level, they proceed with the acquisition materials. You get a picture on the wall at the rest of the rest of the time. restaurant for eating the epic 20-ounce burger. Inspire gets a snacks pod story for acquiring 20 burger companies. Duncan just confirmed it's been approached by Inspire about getting acquired for $9 billion. So Duncan stock jumped 16% because it's in talks with Inspired to hit a $9 billion deal. But we got to back up when it comes to Dunkin Donuts because it's had quite a run. Before the pandemic, Jack and I noticed that Duncan, it was basically fancifying itself.

It was kind of pulling that move that we saw in She's All That. Minus the Freddie Prince Jr. I'm right there with you. Great guy, exact same kind of theme. He'd have a role in this too. By 2019, over half of Dunkin' Donuts revenues came from beverages. So they dropped Donut from the name. This is the Justin Timberlake dropping the thaw. If you know, you know. It also splurged $120 million on new espresso machines. So naturally, it had to cut out the styrofoam like bucket 40 ounce cups.

They also said, hey, now that we're Duncan, we've had this whole makeover. We got to look sharp. So we're going to cut all 450 of our Speedway gas station mini-Dunkin locations because it's just not a good look. If you want to sell espresso's and lattes, you shouldn't be selling styrofo cups or being at gas station. Jack, we've said it once, you said it 100 times. You don't pump gas and pump espresso. It's not the thing you do with the same hands. Duncan's new look, post she's all that.

Less hazelnut culotta. Three pumps, darling. More oatmeal latte. Three leaf clover foam arts, please, and keep them symmetrical. I want to post this on in. Insta, I want to post this on Insta. Now, that was pre-pandemic, but the fascinating thing Jack and I have noticed post-pandemic is that since March, Duncan's stock has more than doubled.

It's a treat-your-self moment Duncan is during pandemic. Snackers, you're stuck at home. So Duncan's drinks have interestingly become a like dessert of your day situation. When every day's the same. Yeah, from couch to table to couch to table to bathroom to couch to table. It's depressing, Jack. A coconut cacao infused latte is like a little vacation. Jack, you took me to a dark place and I'm right back happy with you right now.

Duncan's also winning on social media. TikTok creator Charlie DeMilleo is a big fan of Duncan, and she was organically posting pictures of her Duncan habit. So Duncan noticed her go-to drink was a latte with whole milk and get this, three pumps of caramel. Their words, not ours. Yeah, we're not the only ones who think Duncan's favorite unit of measurement is a pump. But they decided to make it TikTok official.

Right. Her 94 million followers have led to a surge in app downloads for Dunkin. 57% more downloads in just 24 hours. So, Jack, what's the takeaway for our buddies over at Duncan? This is the opposite of every private equity deal we've ever seen. Yes, it is. We think this deal makes nonsense. Yeah, Snaggers, private equity playbook here, you find an undervalued, mismanaged,

unprofitable company, and then you turn it around. Private equity companies are basically house flippers, but they're flipping companies instead of homes. But here's the thing about Duncan. It's no fixer-upper. It's already living its best life. It had a record 1.5 billion in revenue last year with a 240 million profit. The stock is at an all-time high, and they just got an offer to be acquired for 20% more than that all-time high.

Instead of trying to turn around a struggling company like PE firms are supposed to do, inspires trying to turn around a successful company? Feels kind of like a keep doing what you're doing. For Duncan, Duncan, keep doing what you're doing. We're uninspired by this deal. For our second story, the latest James Bond movie has, no theaters to play in. We're looking at how much a blockbuster movie is worth to like Apple TV Plus, Netflix, Amazon Prime, or HBO Max. Jack, the name's Bond, streaming Bond and

MGM has a unique problem with Bond right now. MGM studios has Daniel Craig's final Bond movie, but movie theaters are closed. Snackers, we know what you're thinking. You think you've probably heard this story before. Disney had this issue with Mulan, AT&T had this issue with trolls too. Classic. Both those studios had the same dilemma. Go directly to streaming now or wait until we have a vaccine and then go to theaters like you were supposed to. But what Jack and I found fascinating about this story is that MGM owns the James Bond films and this time it's a little bit different. It's different because MGM doesn't have its own streaming network. No. Like AT&T and Disney did. In the meantime, they've done this whole movie. They got James Bond's final no time to die scheduled for April. Couldn't

happened because of COVID. It's been six months and there is no reopening in sight. So MGM needs cash. They are reportedly auctioning off the James Bond movie to the highest streaming bidder. Jack, we got ourselves to J.G. Wentworth's situation. So Jack and I started wondering, when it comes to auctioning off this final James Bond movie by Daniel Craig, how much is it worth? All right. So the first thing we did, you know, Daniel Craig is James Bond. So the average James Bond movie with Daniel Craig as James Bond made a billion dollars at the box office. Jacks, that's $15 million per an ab. And since the studio keeps 50% of box office sales, the theater taking the other 50%, MGM has made an average of $500 million in revenue for every Daniel Craig Bond movie.

Okay, so the first thought, MGM should ask for $500 million to let a streamer take this film and put it in your living room. Don't shortchange yourself, Nick. It's a pandemic. So MGM must be thinking they can ask for more because streamers would kill for a blockbuster movie right now. So then if your MGM, you're thinking, you know what, instead of 500 million, we'll ask for 750 million for a streamer to take Daniel Craig off our hands. Not so fast. The streamers know that MGM's in trouble. It needs cash because COVID has crushed Hollywood production for a year and maybe more. Well, then that means the streamers should probably counter with something much lower like $250 million. They're thinking MGM would accept anything because anything is better than the zero they're getting for bond today. Which leads us to the news from yesterday that Apple TV Plus and Netflix,

Netflix are reportedly in talks to buy no time to die, but no deal is done yet. MGM is reportedly asking for $600 million for this Bond film, and that's apparently too much for Apple TV Plus Netflix. So Jack, what's the takeaway for our buddies over at MGM along with James Bond and MI5? Streaming Bond will probably flop, and live sports proves why. Snackers, we're not going to comment on the fitness of 52-year-old Daniel Craig to jump off a helicopter onto a moving train without spilling his martini, but look really good in that suit while he does it. It's always that gray suit and that really tiny bathing suit.

His blue eyes killed. But we are saying that Bond on streaming could fail. And you might also think that there's a dearth of new movies out there right now. So Bond is going to clearly get huge numbers on streaming because he's the only guy out there right now. But we thought the same exact thing about live sports. Despite months of no live sports, when the NFL, NHL, MLB, and NBA all came back, they kind of performed poorly. The NBA finals viewership was down 49% compared to last year.

and for the Stanley Cup, it was even worse, down 61% from last year. It's because people have found other things to do, mainly video games and other media, and apparently going over to Dunkin' Donuts for a cul-a. Whoever buys the Reds to this James Bond movie should be aware of what happened to live sports. For our third and final story, Big Banks are getting squeezed by the Fed and COVID simultaneously. So they're doing what they do best? Yep, they're squeezing you and me. Now, Snackers, last week, the Big Banks, they all announced their earnings for July through September.

Jack and I were looking. attention. We have like, you know, a picnic while we were watching. Honestly, there was nothing too interesting. And we decided none of those earnings reports were worthy of your snacks pod listening time. No, Jack and I care immensely about your time. So we thought the best story there, honestly, the Goldman Sachs Malaysia scandal. That was wild. That was a great story. But this week, we noticed something about banks, something that is relevant to you and me. Yeah, snackers. And what happened to big banks can all be exemplified by a single company, John Pierpont. Morgan, JPM, JPMorgan. Wow, I did not know those are briefs. It's a New Yorker thing. You grew up,

you have to know about this guy. For J.P. Morgan, Wall Street was great. Main Street wasn't last quarter. Yeah, well, JP Morgan saw a 30% jump in trading revenue. Fantastic if you're doing like the whole dividend on the desk, seamless orders at 3 a.m. kind of a thing. But it made 9% less in like boring interest on loans because interest rates are so low right now. Jack and I noticed its credit card business also fell because honestly you're just, you're swiping less, you're spending less than you were a year ago. Overall at its consumer banking division, aka its main street business, J.P. Morgan Chase experienced a 9% slip in revenues last quarter. Translation, stock markets and big corporate clients, booming, fantastic time, dinner on the tab at Nobu. But are banking products for normal people like

you had made, those made less money because the economy's weaker. And we double checked it out, similar situation over at Citibank, Bank of America, Wells Fargo, if you're wearing a tie, there was that same situation. The reason that retail and consumer banking business is struggled is because interest rates are lower than ever. And a big hole in the economy is still blown out by COVID-19. But over at John Pierre, Morgan Chase, or whatever it is, they're not going to accept the we made less money because of COVID excuse. No, Jamie Diamond can't roll up and say that kind of thing. So they're going to make up for it with fees on you and me. You might want to check out your checking account statement right about now. Because

there's probably fatter fees than there were like last month or last year. We jumped in snack style, according to a bank rate survey, overdraft fees, ticked up to an average $33 over the last quarter, their highest point ever. And the average fee to just have an interest-generating bank account hit a record $15.50 a month last quarter. Oh, and by the way, let's say you're at like a non-network ATM, you're going to get hit with a fee of $4.64 on average just to withdraw cash.

not a record high, but still really high. So Americans are paying the most ever just to have a bank account, and they're also getting the least ever in return. After all this, you put your money in the bank account and the rate of interest that you're getting back, only 0.04% APY. That is 0% of a lift. You're getting smacked, and you're also not making any money for it.

So, Jack, what's the takeaway for our buddies over in the whole banking industry? Big banks retail numbers show us the real economy. Snackers, the key. Hairs Act earlier this summer, it helped fill the COVID hole that was left in the economy. $600 extra per week for unemployment. It was pretty nice, but that money ran out in July. And so since then the consumer has suffered more, and then so did the entire retail business of the big banks. Without a new stimulus package before the election, which we're not going to get before the election. No, we're not. It could take us even longer to recover from COVID.

And until then, banks are squeezing you while they're getting squeezed. Jack, can you whip up the takeaways for us over there? might get each and every one of its publicly traded shares acquired by one company. Inspired. It wants to take Dunkin Private. We think it's a flawed deal. We're just going to go on the record and say it. For our second story, MGM Studios is reportedly offering to sell its latest bond flag for $600 million. Netflix and Apple TV, they think it's too much. Look to the live sports, the answers in that Stanley Cup. For our third and final story, Big Banks noticed their mom-pop banking divisions suffered last quarter. They're making it up with higher fees and some stimulus would be

really nice to kind of fix all this. Now, time for our snack fact of the day. This one reads like some kind of an epic novel. It's by Taste Coella over in Miami, Florida. He sent it to us in like 12 parts. It's actually a crescendo of snack facts, like four snack facts leading up to a fifth snack fact. Yeah, if you rhyme this thing, it's literally a sonnet. So it starts off. There are more than 2,000 varieties of cheese available worldwide. But mozzarella is the most consumed in the world. All right now, all of us, all Americans, we're eating 34-pats. We're eating 34-pats. pounds of cheese per person in a year. I think that's mozzarella cheese and the biggest producer of mozzarella cheese is Pizza Hut, the Pizza Giant. Which leads us back to the intro, if the

cheese is not made with dairy, can you call a cheese? Pizza Hut uses 300 million pounds of mozzarella cheese per year. Snackers, have a fantastic T-Boy Tuesday and remember to tell at least one person today, H-Y-H-Y-S-D. Have you had your snacks daily? It's not a question. It's a If you know, you know. Snackers, quick correction. Yesterday, we said that L'Oreal acquired Vichet and La Rochelle Posse, along with Saraveh back in 2017, three companies. But it actually acquired Amby and Acne Free,

along with Saraveh in 2017 for $1.3 billion. We got one out of the three. Vichet and La Roche Pose were already on Lori Vell's roster. And before we go, big congrats to Snackers, Zach and Kim Tomasik, their anniversary and their running champions over in Buffalo, New York. And happy anniversary to Jason, Cat in Boston. And to Haley and Alan just got engaged in Mountain View, California,

great vistas. And happy birthday to B. Schultz in Geelong, Australia. And to James Huang in Portland, Oregon. And Amir Mostafavi in Austin, Texas. And Kelsey Seipel in Summerfield, North Carolina. And Anquita Kavasara in San Jose, California. And Song Ekpo in Philadelphia, Pennsylvania. And Chavad Kalbani in the Woodlands, Texas. And Franklin Kazarin in San Diego, California. and Amy Lou in San Diego, California. By the way, this is Nick and I own shares of Apple. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC

and does not reflect the views of Robin Hood Markets, or any of its subsidiaries or affiliates. The podcast is for informational purposes only, is not intended to serve as a recommendation to buy or sell any security, and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood Financial LLC, member FINRA SIPC.