The Best One Yet - 🐣 “Ain’t No Thang” — Wingstop’s chicken wing ghost. Uber’s 1st Super App. The Super Bitcoin Betting Bowl.

Episode Date: February 11, 2022

The only pure play chicken wing stock, Wingstop may have the boldest goal of any fast food chain: Table-less wings. Uber jumped 4% because we think it’s (unofficially) become the 1st American Super App. And the Super Bowl feels less like Los Angeles and more like Las Vegas because — It’s become The Super Bitcoin Betting Bowl.$WING $UBER $BTC Got a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn 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. It is Friday, the real Friday, February 11th. Bahamas Pod. I am remote on location to celebrate Shane and Alessandra's wedding. What is this? Is that a conkfrider next to you?

What's going on there? Yes, it is actually. They're delicious. Oh, very nice. Now, did I tell you who I saw on the plane? No, you didn't tell me you saw on the plane? I told Alex, that's Macklebone. No, no, no, no.

Then he pulled out his coat. And I was like, that's definitely McLeod. Were you getting thrift store vibes? they were definitely three-store vibes. He had a John Snow fur coat. It was huge. Malcolm Moore's the only guy going to the Bahamas in like shearling with two vipers on his collar. Today's pod, though, is the best one yet.

Snackers, this is a TBOI. Jack, what's our first story before the weekend? Wingstop is a pure play chicken wing stock that won't stop. Snackers, Wingstop, they are using their first wing advantage to change the whole fast food industry. For our second story, it's finally here, the Super Bowl. I mean, the Super Bitcoin betting ball. Well, I just bet 30 Doge on three to one odds that. Cooper Cuff scores a touchdown in the second quarter with one shoe on.

For our third and final story, Uber jumped 4% after its earnings report because it's no longer just Uber. Yeah, Snackers, we're thinking Uber just became the first American super app. Wonderful mix. This is how you going to a good weekend? This is how you going to a weekend check. Before we hit those three stories, one of the best performing stocks of last year, Nick? It's Build a Bear. Build a Bear, the adorable toy bears. That is like the best stock of 2021.

The little kids teddy bear company is the wolf of Wall Street. Jack, Build a Bear stock. I'm looking right now. It was $1 in March 2020. It is $20 for Build a bear stock today. The average customer is Little Lucy, age eight, who's got a monster under her bed. But Snackers, funny thing Jack and I noticed, things have changed for cute little build a bear this week. Build a Bear Corporation just launched a new website that says you must be 18 or older to enter. Are you kidding me? This is an adult's only teddy bear situation. Bear rated R. They literally call this Build a Bear after dark. Now, Snackers, earmuffs, please. Earmuffs if you're under 18. Get this. One of the new Builda Bear after dark bears includes

a baby toy build a bear with a plush bottle of rosé. Another one is a builder bear putting on paw polish. Another one is a builder bear who's only wearing little bear boxers. Then there's the build a bear who has a note pinned to him that says don't text your ex. So actually, Jack, looking at this. It's not that risque. It's more risk okay. Yeah. That is. Snackers, this isn't just Valentine's Day weekend. It is revenge Valentine's Day weekend. Build a bear stand up past midnight. Let's hit our three naughty stories. You're tuned in the snacks daily. Snacks about to hear ain't food. It's air candy. They don't reflect the views of the robberhood family.

It's all informational just so. You know, we're not recommending any securities. 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 Fenra slash SIPC. For our first story, Jack, celery or carrot? Carrots and ranch, not blue cheese. It was actually a trick question.

The answer was just any of the wings. But for our first story, chicken wing chain wing stop. They are doing something wild. They are 100% killing their tables. The most aggressive, transformative goal in fast food. Okay, Jack, let's go back down to Texas, where Wingstop has got 1,700 locations across the country. It is publicly traded, and it is.

is worth $5 billion of poultry power. They're more sauce than they are wings. It's really a sauce company. Because they sell one product, which is the chicken wing. But they sell 14 sauces. Hickory smoked, mango habanero, pepper lemon, a lot of options there. We should say they actually sell chicken thighs too. After their thigh stop thing went viral.

Yeah. You're talking thigh Thursday. You're talking thigh Thursday. They added thighs to the permanent menu and now have thigh Thursday. It's like Taco Tuesday, but it's kicked up a couple notches. Now, Snackers, this is the prime quarter for Wingstop, because the Super Bowl, that's Wingstop's Super Bowl. And based on some of the Valentine's Day promotions,

they're thrown our way, I guess Valentine's Day is overtime. Yeah, so first you indulge with a group and then you indulge solo. Now, Wingstop has 17 consecutive years of sales growth, and this past year hit record revenue. Because wings are the ultimate takeout food. Very simple product to make. And yet, the stock of Wingstop is down in the past year. Because Wingstop's profits have been hurt,

Because wing prices have jumped 49% in the last year. Wings were on the hoarder's almanac twice over the past year. But here's what Jack and I find fascinating about Wingstop. They have got what we think is the boldest goal of any American restaurant chain. No more seats. Yeah, Jack, we predicted this with Chipotle like two years ago back in early 2020. Chipotle did it at some locations, but Wingstop appears to have bigger meatballs. Boom. First thing that Wingstop has done in this noble food quest,

was launching their first table-free location in New York just this past November. That was a ghost kitchen, which is a lower cost and more efficient way to run an operation. But it also means you can only order it in a delivery app. Right. Now, here's the shocking thing. The real estate in New York, it's really expensive. They bought up 20 more spaces to build those same exact table-free ghost kitchens. Now, this month, they opened not a ghost kitchen, but not a totally living kitchen either. Yeah, this is like a wingstop location in Dallas where, You're going to walk in and you're not going to see any tables.

You're not going to see any seats. It's not a ghost kitchen, but there's no tables either. So you can't sit down and enjoy your wings. They're referring to it as the restaurant of the future. Hold words. The restaurant of the future concept requires 25% lower square footage because there's no tables there. So it's less costly and more efficient. You can't sit and dip.

It's only dash and dip. You're also can't pay in cash. This is digitally focused. And their goal, long term, is to have 100% of transactions, digital, and takeout in delivery only. So, Jack, Wingstop doing their best sales ever, record sales, things look fantastic for the wing community. Why are they making this ridiculous transformation?

They're getting rid of tables because it's what people want and it happens to be lower cost for Wingstop too. How convenient. Wingstop knows because they have first wing advantage. So Jack, what's the takeaway for our buddies dipping in the ranch over at Wingstop? To sustain a first wing advantage, it comes down to learning. Snackers, first mover advantage? That is great.

but being first in a market doesn't necessarily mean you stay first. A bunch of other chains followed Wingstop to make wings. And a bunch of them don't have tables either. Jack, remember we covered DJ College's Ghost Kitchen and another wing just like a few weeks ago. That's called another wing. But being first also means you have the opportunity to learn first. That's the key. Because Wingstop, they have seen over the years that take on delivery, that has grown aggressively as a percentage of their sales.

They saw a trend in real time that people. People preferred eating their wings at home in front of the game or while playing video games or something. Yeah, get this. Nearly 100% of Wingstops total orders right now. They are takeout or delivery. Nearly 100%. Wingstop learned. So that's all they're going to do now in the future. Wingstop was first and it learned first to stay first. For our second story, it is finally here the Super Bitcoin betting bowl. Football already had a motion as its currency. Now it has a sound. second currency.

Okay, Jack, first of all, are you going to watch the game with your buddy McElmore? Is that going down here? I'm going to be flying home during the game. You're going to toss on a can of the goose hanging out with McElmore instead of... He's a well-known Seahawks fan. I think when you're hanging with Macamore, you wear a vest. Now, Snaggers, Cincinnati versus Los Angeles. But here's the thing, Jack, and I noticed.

Nobody in business is talking about Bengals or Rams. They're not wondering if Joe Burrow will cap his national championship and Heisman trophy with a Super Bowl. The only thing that anyone is looking at is the commercials. Because the star of the ads in this year's Super Bowl is cryptocurrencies. Yeah, it is. And when you're not seeing a crypto ad, instead you're going to be checking your bets on your phone. What we're trying to say is this year's Super Bowl, it's really the super Bitcoin betting bowl. So, Jack, should we start with crypto?

How about crypto first? Yeah, crypto first. The crypto industry wants sports fans badly. We saw it when crypto.com paid a report at $700 million to get the naming rights to the Los Angeles Lakers arena earlier last year. And we see it when Matt Damon in a commercial said that investing in a crypto was an act of courage and braver. Yeah, we're probably going to see it Sunday when Tom Brady is expected to try to out Boston Matt Damon in his own Super Bowl ad for another crypto exchange. Right. NBC is selling some TV spots for an insane $7 million for a 30 second hit.

Okay, Snackers, let that sink in. Seven million dollars for 30 seconds. That is a record high for the Super Bowl. You want to know why? Because the crypto industry is loaded right. Yeah, the crypto industry is so well funded by very much. venture capital, they don't know really what to do with the cash. Well, they want new customers. That's what they want. So putting a 30 second pitch for their crypto platform in front of 100 million viewers, starring a guy who football fans admire and recognize. That's what they're doing. But it's not just Bitcoin in the Super Bowl. It's also the betting bowl. Since the Supreme Court's 2018 ruling, the NFL and betting industries have antied up together.

Jack, you got 45 million more Americans who can now legally bet from their phones this Super Bowl, just compared to last year's Super Bowl. You got 100 million Americans total. You can legally lose 20 bucks on whether the coin flip will be heads or tails. Or they could put 200 bucks on whether defensive tackle Aaron Donald's is going to shave his beard before kickoff. The gambling industry this year predicts a record number of bets during the Super Bowl. All right. They're predicting 31 million will bet on the Super Bowl this year for a total of $8 billion of money on the line.

That is half a lift. The game has played in Los Angeles, but it feels more like Las Vegas. So, Jack, what's the takeaway for our buddies over in the Super Bowl? The currency of sports has always been emotion. Now the currency is also currency. Snackers, the transactions of sports, they are happiness and pain. Emotions are the currency of sports. The transactions are shouting, cheering, and booing.

But here's the thing we're noticing. Now sports, they've added a second currency. And that second currency is wagered money. Now you may shout, cheer or boo for the mere reason that you have money on the line. in this game. He may not love football, but more of us are watching the Super Bowl on Sunday because you may have money on the Bengals this time. This Super Bowl is the most valuable Super Bowl ever because it's got a new currency. Wagered money. For our third and final story, Uber just had its first ever investor day and we don't think

it's a ride hail company anymore. We think it's subtly become America's first super app. All right, Jack, let's just jump right into the earnings numbers here. Ride hailing? Uber's ride-haling just like still hasn't recovered to pre-pandemic levels. Revenues are still down from before the pandemic because there's fewer butts and seats going places. However, year two of the pandemic, it looks a lot different for Uber these days. You are ordering more pad tie for delivery than you are the old school black Toyota Camrys. Turns out that in the fourth quarter, Uber's Uber eats delivery revenue jumped a whopping 78%. That's after already surging 224% the year before. So after two incredible years of growth. Nick, Uber looks like a food delivery company. But the most fascinating

thing we noticed about Uber was actually in its investor day deck. Slide 19, sentence three. Okay. Promotion between apps. It's a crucial Uber strategy. Between apps. A huge reason why Uber eats is now bigger than Uber rides is because Uber merged the two apps just a couple years ago. It used to be Uber and Uber eats. Two separate apps, which you had to download both of them and use them separately. No, Uber's app has Eats baked into it like a spinach pie. And that is key because of this line from an executive at Uber's Investor Day. They said that we gain new customers for Uber Eats through Uber Ridehouse.

So a user downloads Uber to take a taxi to dinner, but then discovered Eats to order dinner. Because they're in the same app. They're noticing them in the same place. Uber Eats became Uber's main business because Uber had a huge installed user base of riders. And at the end of the day, everyone's got to eat, but not everyone has to cab from downtown to uptown on a daily basis. So Uber cross-pollinated their rides user base with their eats user base. And when you add all this up, Uber's revenues in the past 12 months are now better than at any other time in Uber's entire history, despite the pandemic. Despite the pandemic, which has people not going into work and not seeing friends as much, which is, that used to be Uber's only thing was rides.

So Uber is now the same business as before, but they made one change merging the apps and that has. had huge benefits. So Jack, what is the five-star takeaway for our buddies over at Uber? Uber has quietly become America's first super app. Super app. Snackers, one app on your phone that has a whole bunch of distinct services built into it. At the start of the year, we predicted Twitter would become America's first super app. But with this investor presentation from Uber, we just saw, Jack and I are realizing

Uber, you're a super app. You're just being humble about it. You're not even talking about it. Snackers, open up your Uber app. now. You'll see the rides. You can hail a car. You can book a scooter, book a bike. Yeah, or you can see eat. You can get a restaurant food or you can get groceries delivered. But you're going to see another button to deliver alcohol because Uber acquired drizzling. You see a whole bunch of other buttons and tiles for running a car, booking a ticket, drugstore goods, public transportation,

all in the Uber app. There are as many apps within Uber as there are on your iPhone's homescreen. And the beauty of one space is that they all cross-pollinate with the other's growth. We're looking at Uber app. Looks more like a super app. The beauty of one space is they all cross-pollinate with each other's growth. Jack, can you whip up the takeaways for us before the weekend? Wingstop is transforming to become all digital and all takeout and delivery. It was first in wings.

It learned first about wings. So to stay first in wings, it needs a first wing advantage. For our second story, the Super Bowl is really the Super Bitcoin betting bowl. Yeah, because the currency of sports was emotion. Now it's driven by wagered money to. In our third and final story, Uber's food delivery business is bigger than ride ham. Uber, you've become America's first super app. Like, whether you want to admit it or not, that's...

Jack and I just, we've decided that. If you can name it, you can tame it. You know, you know. Now, time for our snack fact of the day. This one sent in by Alex Keat over in lovely New York City. New York City rises and falls up to 14 inches a day. Yeah. Due to a phenomenon called Earth.

Tides. Yeah. So you think of tides, you're thinking of the ocean. The tides are actually affecting Midtown Manhattan. When the earth's crust is literally pulled toward the moon with the same force that moves our oceans. It's gravity and it's earth tides and it's physically moving New York City. Snackers, have a fantastic weekend. Celebrate some wins.

Jack, enjoy the beach. Enjoy the Bahamas. Enjoy that globe. Cog fritters all over it. Nick and I will see you Monday. Can't wait. And before we go, congratulations to Snackx. or Nick who just finished a grad program down in Melbourne, Australia.

Congrats to Mani and Connie, who've spent 22 magical years together in Orlando. And Kathy Verhino, enjoy seeing Hamilton on Broadway for the first time since the pandemic. Get some extra popcorn. And congrats to Ryan and Krista, who just had a baby boy down in the Little Rock, Arkansas. And Jackie, Jacks Vasquez, and Johnny Rodriguez are getting married over in Paris, California. Nala the puppy. Happy birthday in Bay City, Michigan. Who's a good point?

And happy birthday to Kara Eanos down in Nashville. Happy 20th to Courtney in Pleasant Grove, Utah. And Cohen Q, turn in 10 in Ridgewood, New Jersey. Happy birthday, Chris Fryer, Big 35 in Placerville, California. And Kelly Liu over in Hong Kong. Enjoy that birthday in Hawaii. Happy birthday, Bailey LaZan in Tampa, Florida. And Al Arim in Berlin Game, California.

And Dan Finn in Carrie North Carolina. And Andrew Jang over in Toronto. And Susan Duarte in Bullfrog, Utah. And happy birthday to President Abraham. Abraham Lincoln. And to anyone else celebrating something today, make it a T-boy. Celebrate those wins. This is Jack. Nick and I both own some Bitcoin and stock of Chipotle. Robin Hood Snacks, newsletters, and podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets, Inc, or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account.

This is not an offer or sale of a security, not a research report, and is not intended to serve on the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robin Hood Markets, Inc., Robin Hood Financial LLC, or Robin Hood Financial LLC, or Robinhood Financial, LLC, or Robinhood Financial, LLC, Member Finra, SIPC. Bill DeBarre stand up past midnight.