The Best One Yet - “Football kills cable” — Five Below’s allowance $$$. NFL’s Amazon deal. Garmin’s Millennial GPS.

Episode Date: March 22, 2021

The winningest chain of the last year may be teen legend Five Below because it’s focused on allowance money, not stimulus money. The NFL’s latest TV deal features 1 small detail that will end the cable TV bundle… forever. And Garmin, the OG of GPS, just hit a stock price it hasn’t seen in 14 years. $FIVE $GRMN $AMZNGot 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 Monday. Welcome back March 22nd. I'm still here. Yeah, you are. So I guess our baby boy is not going to be a Pisces.

No, it's not. By the way, you guys, it's Jack. It's day number seven? No, what day number seven? We haven't been funged in seven days, baby. We're unfungable, baby. You can't funge us. This also happens to be the best one yet.

TBOI. What do we got for our first story, Jay? Five below. Maybe the surprise store of the year. Literally the surprise store. The stock, it's thriving not because of stimulus money, but because of allowance money. For our second story, the NFL just locked up its TV deals for the next 11 years. And we found one small detail that could lead to the end of cable TV bundles forever.

Honestly, forever. For our third and final story, Garmin is the original GPS device, and they just hit a special milestone. The stock finally passed where it last was back in 2007. 2007? It's been 14 years. Your stock looks good. You guys just chug along. Stick with it. It's all about patience. But before we hit that, honestly, wonderful mix of stories today, Jack.

You know, we're not quite at the age where we lie about our age. No, no, no, no. Nick and I, we still get IDed from time to time. Yeah, we do. It's nice. But we're still bad at TikTok. Yeah, we are. We're comfortable with, you know, that 8 p.m. dinner followed by a bath. It's a typical Saturday. It's a Saturday.

But according to the Wall Street Journal, startups aren't comfortable with their age. No, in fact, these startups, they're older than they say so they can appear younger and faster growing than they actually are. Exhibit A, Evernote's CEO says that 2008 is the year that Evernote was launched. That's so funny because the first lines of code and founding were actually back in 2002. Exhibit B. Yes. Lyft's website says that 2012 was year number one for Lyft. But the first version of Lyft was actually like driving around the cities back in 2007. Here's the thing. Startups want you to think that their idea is so good, that it took off overnight. They'd rather you forget about the random ramen years because they couldn't find, you know, product market fit.

They're like, Doc, I haven't seen any business traction in six months. So you got these founders, they're messing with the X-axis of their growth charts on us over here. They want to knock off a couple years of their age so they can fundraise a couple more million. Snackers, this is Nick, that's Jack, and here's how we calculate our age. Half of lift. half of lift stock price. That's how old we are. It's incredibly convenient as of when we recorded this.

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 the hearing food is air candy. They don't reflect the views of the robberhood family. It's all informational just so. We're not recommending any securities. It's not a research report or investment advice.

Not an offer or sale of a security. Snacks is digestible. This news for you. Rapper Her Financial, LLC, member FINRA slash SIPC. For our first story, five below, maybe, honestly, it may be the best performing store in the United States right now. If you know somebody under 20 years old, you maybe you do. You should know five below.

You should. By the way, okay, the original name for this company, it just, it says it all, Jack. It says it all. Cheap Holdings, Inc. Cheap Holdings, Inc. was the original name. of these guys. That's because Five Below is a store that sells stuff mostly under five bucks. It's like if you made a drink that's one part dollar general and one part target, that's five below. But Five Below is for teenagers. So there's no alcohol. It's just full of Grenadine.

Stick the little cherry on top. You love that cherry. It's a publicly traded company. And they're in the business of quote unquote high energy retail. Snaggers, you also can't make this up, Jack. I love this. Their headquarters in Philadelphia, they call it Wow Town. Wow. Wow. And their stock is Wow, town. It's tripled in the past year. They just enjoyed 25% revenue growth in the last quarter. Boom. And they did almost $2 billion in sales last year.

Oh, and no big deal. They're adding a whopping 180 new stores this year. Bringing the total to like 1,000 stores in 39 states. How many do you think they got in Vermont, Nick? I don't know. You're going to wow me in it. We got zero. How many over by you in California?

It's probably like six down the street. I imagine there are wow stores within the wow five below stores. 62 in California. you're behind only Florida and Texas. But Snackers, forget about stimulus money. This company is all about allowance money. Yes, they mentioned teens and tweens 26 times in their annual report. I love this. Jack, this is a classic treasure hunt company.

Five below brags that they have sight lines that let you, like, scan the whole store the moment you walk in. It's like the military. They also say they got signage that yells. That's fun. Candy, here. Isle five. And every week, this is the key. Every week, they update their wheelbarrows at the end of each aisle, or their oil drums,

or their bins of new goods filled with new things. They use interesting containers. And for like a 10-year-old, five below is the only place in the world, you're going to find Eminem Peeps, something we didn't know existed. No, we didn't. Or they're going to find silly putty extreme flavors. Didn't know that existed. For older teens, 17-year-olds, they'll have faux succulents.

They look nice, but you don't have to water them. And they got the hot stone massage kits, you know? I don't know. A parent probably is to sign off on that, Jack. Five Below is like a physical manifestation of wish.com, or if you take everything on Amazon and filter it to under five bucks. And it's working. So, Jack, what's the takeaway for our buddies over at Five Below? The Treasure Hunt drives repeat customers.

And there is nothing more elegant than a repeat customer driving your sales. Five Below brings the teens back to the stores by constantly refreshing their wheelbarrows full of goodies. Yeah, one sec, Jack, this week they got $4 pool floats. Repeat customers are great because they don't need as expensive marketing because they don't have to be convinced. Yeah, also, Jack, you got less customer service time dedicated to them because they know the store layout. And then repeat customers will promote your business for you because they bring a new friend into the store to see what's in those wheelbarrows this week. Five below is thriving on the treasure hunt, and the treasure hunt drives repeat customers. For our second story, the NFL just pre-booked half of its revenue for the next 11 years we're going to be old.

Nick, Amazon Prime got Thursday night, and that could mean the end of cable TV. That part is the key snaggers. But look, if you're a Packers fan, you check Fox. If you're a Raiders fan, you check CBS. If your team's winless this year, probably based in Ohio. Awkward. You check the Thursday night schedule because that's probably when your game's on. NFL fans get how to watch their team, and it's through one thing.

it is through cable TV. You're turning it on, you're checking channel 3, channel 5, or channel 9, and you're praying that your team is on one of those channels. And fact check over an I.O 6 or channel 703, 704, 709 for all you direct TVers out there. But not anymore. No, legacy media companies just extended their NFL TV deals in an epic way. Yes, CBS, NBC, and Fox, their deals are pretty much the same. They're all going to split the Sunday NFL games.

Disney, Disney jumped in because they own ESPN and ABC. They're going to get Monday night football and a couple Super Bowls. Now, Snackers, the NFL is technically a non-profit organization. Technically. But they represent 32 very for-profit NFL teams. Technically. And they just booked a whopping $113 billion in revenue from this single deal. It doesn't hurt that starting next season, there's actually going to be 17 regular season football games.

They're adding a game to the schedule. basically it's a money game. They're just making money on an extra game. They just added a 17th meal to the NFL buffet and they think we're going to eat it. It's a money meal. Now, since over 50% of the NFL's revenues come from these TV deals, most of their work, honestly, like hang it up, go home. Like, they're done for the next 11 years. Right. Now they can shift their attention to stiff arms and Hail Mary passes. But here's what fascinated Jack in me. That is all legacy TV. There's one exception here. The NFL just threw a bone to the streaming video company. Yeah, get this. ESPN Plus, Paramount Plus, and Peacock may simulcast games. That means ESPN can put it on ESPN and stream it to ESPN plus.

If you want to watch just one game like, I don't know, the Manning Bowl, you just pay for one month of peacock streaming. Boom, that's it for the first time. That's a big deal for the cord cutters out there. But an even bigger deal, Amazon Prime is getting every... single Thursday night game for the next 10 years exclusively. And who is Amazon going to hire for commentary, Jack? I don't know, but it's exciting to think about. Yeah, it's probably Alexa. Now, the NFL has been cable TV's sacred, saving grace the last few years. And cable TV just lost 1 17th of the NFL for the next 10 years to Amazon Prime video. So, Jack, what's the takeaway for our buddies over in the NFL, and really in cable? Losing Thursday night football is the crack that could destroy

cable TV. Snacker, some households just watch live sports, and cable TV has always had live sports. Let's call these households Uncle Ken's households. Uncle Ken's a good guy. So live sports were Cables Anchor product. Yeah, they were. But live sports

was also streaming videos as Achilles heel. But now, for the first time, NFL fans will need to switch to streaming, at least on Thursday nights if they want to watch Thursday night games. We think millions of NFL fans may download a streaming app, any streaming app for the first time to watch these Thursday night football games on Amazon Prime.

What is this? Like an HDMI cord? What's this HDMI thing? And we bet these first time streamers will be impressed. They'll be like, that was easy. This is great. Why not? They'll download another streaming app and then another streaming app. Legendary media analyst, Rich Greenfield. Legend. Thinks that 40 to 50 million American households were never going to cut cable because of the NFL's dominance on cable. But now he thinks that number has fallen even lower to only 20 and households that would stay cable faithful. Rich Greenfield thinks this deal

means 30 million American households will cut the chord. Losing this single NFL game could be the crack that breaks the cable TV bundle. For our third and final story, Garmin stock just hit a critical milestone. Garman, Pop, Garman.

It's not the milestone, but it hasn't been where it is right now, honestly, in like 14 years. The Garmin brand may sound old to you, but it's actually just millennial like Nick and Maine. It's right in the meaty part. of the millennial age curve. Yeah, it is. Basically, it's the first publicly traded GPS company, and it was born in 1989. It's the Taylor Swift of geography. Yeah, basically. And the name itself,

this is just a great trivia thing. It's a combo of Gary and Mint. That's he get Garmin. Yes, those are the two founders. I see your palindrome. I raise you a portmanteau. I like what you did there. They built themselves a $24 billion company based in lovely Kansas City. Technically, actually, Switzerland for tax reduction. purposes, Nick. But here's the wild thing, Snackers. Garmin of 2016, five years ago, doesn't even recognize Garmin 2021 up today. Remember their OG dashboard, you know, you stuck the GPS up there so you could drive somewhere. Back in 2016, a third of Garmin's revenues were still coming from those car devices. A whopping third of the revenues. Today,

just 11% of their revenues have the suction cups to stick on the dashboard. 89% of the revenues come from things that have nothing to do with a car. Yeah, and Garmin is now standard GPS for eight companies that have the word a yacht in their name. Yeah, it's not just boats. Helicopters and airplanes, they use Garmin's GPS too. Why not? Basically, wherever you can't rely on Google Maps for Nav, that's when Garmin steps in. 20,000 feet up or 20,000 feet out to see. Its biggest division is surprisingly the Garmin Fitness Tracker, which competes with Fitbit and Apple Watch. It's kind of the, when you look at the device, it's like the pleaded khakis of fitness deck.

And Garmin just reached a milestone. A milestone. Their stock hit a record high. a record high they haven't reached since 2007. Let that sink in. Their stock hasn't been at this point in 14 years. So, Jack, what's the takeaway for our buddies over at Garmin? Garmin stock is one giant iPhone scar. Yeah, we think of iPhone happily for like all the value. It's lovely created for so many companies.

The entire app economy couldn't exist without the iPhone. Jack, Uber? Basically runs on the iPhone. Jack, Facebook? They owe a big chunk of their market cap to Steve. Steve Jobs. Blackberry. You always think of Blackberry because that was the direct competition victim to the iPhone, but we forget about the indirect victims of iPhone. Garmin last hit this stock price back in 2007 when every high-end car driver wanted one of their GPS devices. Back in 2007, 74% of Garmin sales, that was car GPS. But 2007 is the same year the iPhone came out.

And in the subsequent year, the stock for Garmin fell by 8%. 80%. Wall Street's looking at this, they quickly realized Garmin's profit puppy was about to go extinct because of the smartphones. You don't need Garmin's $600 devices when your $600 iPhone does the same thing. So this 14-year comeback, it's a testament to Garmin's diversifying its revenue sources over 14 years. But it's also one of the few times we get to see a big, real iPhone scar on a stock. Jack, can you whip up the takeaways for us to welcome back the week. Five below is the high-energy retail that has a big. a thousand locations now. The wheelbarrow treasures. That's what brings back the repeat customers.

The NFL just gave Amazon exclusive rights to Thursday night for 10 years. It could be the crack that finally breaks cable TV. Garmin has finally got back to the stock price it had 14 years ago. This is one big iPhone scar. Honestly, Google the stock price. It's like a shark took a bite out of it since 2017. It's a 14-year you, actually. It's a gap. You can see the teeth mark. You can. It's Flushy. Now, time for our snack back today. This one sent in from Austin Dabrick in lovely Cleveland, Ohio, the Paris on the Lake. Here is TBSFY, the best snacked fact yet. Let's talk coffee, the third most consumed beverage in the world behind tea and water. What most folks refer to as a coffee bean is actually a seed, not a bean at all. Coffee is also the most

recognizable scent in the entire world. Lastly, coffee has four times the amount of aromatic and flavor compounds than wine. Coffee coming in at around over 850, whereas wine is at approximately 200. I'll tell you, I freaking love coffee, man. Nothing like saying beginning alignment, I'll tell you. I'm not a copy game. It is a great way to start the day. Coffee ice cream is like really good, but I don't know.

The smell is good. The taste, it's too bitter. Austin, thanks for the unofficial national coffee. day that you just declared. Well played. Snackers, you look fantastic to start the week. We'd love if you help snacks daily grow. By asking your buddy's H-Y-H-Y-S-D. Have you had your snacks daily? Just ask them. We'll see you tomorrow. Can't wait if you know, you know. And before we go, happy birthday to Pietro in Asti, Italy. And Jeff Pischker, I wish you had told us the name of your daughter, because we want to congratulate her for getting her driver's license in Florida.

Also, Francisco Deloori just got into college in Bruguncia Polista. Brazil. Congratulations to Allison and Emerson for getting engaged in Boston Mass. And happy birthday to Timmy over in Chicago, but not our buddy Tim. And Corey Spitzer in Omaha, Nebraska. And Natalie Carrillo in Windsor, California. And Spencer Lubal in Diamonddale, Michigan. And Sarah Amari also in Chicago for logistics. And Matt Garber in Washington, D.C. And Tim Skanski in Cambridge. And Brian Stone in Eden Prairie, Minnesota. And Tapiawa just got the new job. Congrats over in Brooklyn. Jason. Celebrate the wins on this new. job in Cleveland.

Also on the lake. And to anyone else who is celebrating something, anything today, make it a T-Boy. This is Jack. I own stock of Amazon. Nick own stock 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, Inc. or any of its subsidiaries or affiliates.

The podcast is for informational purposes only and 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.