The Best One Yet - 🥑 “Guac is extra, extra” — Chipotle’s ROLO economy. Bonny Bitcoin & Crypto Clyde. And the Oscar goes to…

Episode Date: February 10, 2022

Chipotle’s earnings report is so meaty that it ain’t about the YOLO Economy — it’s about the ROLO Economy. The government just arrested the suspects behind the biggest crypto hack in history: It involves $3.6B of Bitcoin, 2 married influencers, YouTube rappers, and the Crocodile of Wall Street. And the Oscar nominations just came in and the award goes to… Streaming.$CMG $BTC $DIS $AMZN $AAPLGot 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.

Check, check. Adam, don't you dare mess with us that this file's not working. Honestly, one of the scariest moments of my life hearing the recording didn't happen. Nothing was saved. What's this happened, like eight times for us? The only times when our recorders break and we don't get any recording is when we're up late recording at the last possible moment. And the worst thing that could ever happen to us is the recording not actually recording. It only happens when we have a red eye flight that leaves in three hours. But we're safe today.

We're safe today. Here we go. Hope so. Check, check. Check, check. Three, two. This is Nick. This is Jack. And this is Snacks Daily. It is Thursday, the new Friday, February 10th. Nick, it's a pleasure being on this pod with you. This is the best one, yeah.

Jack, I love doing this with you. It's a TBLY. Jack, what's our first story? Chipotle just whipped out in earnings report. So meaty, you need three hands to eat it. Yeah, this ain't the YOLO economy. This is the Rolo economy. For our second story, the U.S. government just bagged $3.6 billion. in stolen Bitcoin. It's the biggest money seizure in government history. And this tale, it involves Bitcoin Bonnie, Crypto Clyde, YouTube rappers, and the crocodile of Wall Street. And Snackers, we just got our Oscar nominations for the 94th Awards. And the award goes to streaming for its lead role in everything.

Wonderful mix. But Nick, before we hit those stories. Wonderful mix. A North Carolina man walked into his local Red Bull Asian bistro in Charlotte last week. Now, the LoMain apparently was great. The fortune cookie, though. Jack, can we talk about the fortune cookie? Well, the next day, that man won $4 million in his state lottery. Coincidence? No surprise here.

His winning had nothing to do with the LoMayne. But the winning did have to do with the fortune cookie. It did. Because the lucky numbers in that fortune cookie were the lottery's winning numbers. So you're going for the dim sum. You come out with millions of dollars. Greatest dessert ROI we've ever seen. No, because Jack and I were curious about how common this fortune cookie lottery

situation is. And it's not that uncommon. In 2015, a Florida man won $10 million in the lottery with his fortune cookie numbers. In 2005, a Tennessee woman won powerball with fortune cookie numbers. Hurley, that guy in the TV show lost did the same thing in season one. So Jack and I jumped in snack style. If you check out the statistics from 538, they got a whole bunch of math quizzes. They determined that fortune cookie lucky numbers are luckier than random numbers. Here's what they did. they looked at 2043 recent lotteries that have occurred in the United States. Now, random unlucky numbers won $1.7 million from those lotteries. But in their simulation, fortune cookie lucky numbers from actual fortune cookies,

those numbers won 4.4 million, three times as much as the random numbers. Jack, the numbers don't lie about the lucky numbers. A fortune cookie is not just a cookie. No, it ain't. It's also a minuscule improvement of your still infinitesimally small odds of winning the lottery. It's an Oracle Oreo, Jack. Let's hit our three lucky stories. You're tuned in to snacks daily.

We spoke to the lawyers and we got to get something legal out the way. It 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.

Snacks is digestible. Business news for you. Robahood Financial, LLC, member Fembra, For our first story, Chipotle is slaying the inflation thanks to the Rolo economy. Guess what? Chipotle fix. They're a big chain already. They think they're going to get more than twice as big as they are today. All right, Snackers, Chipotle, they just dropped their fourth quarter earning support. Jack, passed the Cholula sauce and the Prilosex. The average Chipotle last year boosted revenue by 15%. That's impressive. Jack, I'm impressed. I'm sitting here. Wiping my face with a napkin. I'm impressed.

15% growth at each restaurant. Behold the queso. Please, Jack. 10% of that 15% growth is just because Chipotle raised prices. This is a little less impressive. I'm feeling a little less impressed right now. So only 5% of that revenue growth is from people actually buying more burritos. So what we're saying is that the average Chipotle sold 5% more burritos than it did last year.

But at a 10% higher price, which means 15% higher revenues. Jack, you get to the end of the Chipotle line. They're like guac is extra extra. Are you sure you still want this? Are you sure you still want this? Whatever it is, 15% is good. That's a five chili pepper performance. The stock jumped 7% on news of these earnings.

Even though you need a mortgage to enjoy the guac. But Snackers, what really got Wall Street pumped about Chipotle's earnings report was the suburban burrito, baby. If you live just outside of Boston like half of this podcast audience, Chipotle is coming to your town. Chipotle's moving out to Greenwich to keep rolling their burrito. Chipotle already had plans to get. get to 6,000 locations in North America. But yesterday they decided, let's boost that to 7,000

restaurants. They're bullish on their burritos and this stock price is feeling kind of spicy right now. Chipotle has already filled cities. Now they want to grab the minivan and hit the burbs too. Get this, 80% of new Chipotle's are going to include a Chipotle lane and that is key. Chipotle lane is the signature drive-thru lane for Chipotle. And only 12% of Chipotle's have them right now. So if drive-through is code for suburbs and you can't suburb without a drive-thru, Chipotle is focused on the suburbs. Chipotle's growth is all about the suburban Chipotlean drive-thair. Jack, you grab, you go, you gorge yourself on the way to soccer practice.

So what's the takeaway for our buddies over at Chipotle? It's not just the YOLO, it's the Rolo economy, too. Yeah, Snackers on Tuesday, Jack and I were telling you about the YOLO economy. The YOLO economy lets luxury brands crank up prices, yet people keep buying crazy luxury items at crazy prices. You only live once, buy it. Doesn't matter that the handbag is $3,000 more. Well, Chipotle is not luxury, but it is cranking up prices like aggressively, we noticed.

Beef, avocado, freight, and workers. Chipotle specifically said those are getting more expensive. That's inflation. It hears the strange thing. Despite all those more expensive things, Chipotle boosted their profit margin by a whopping five percentage points last year. That means Chipotle is raising prices much faster than inflation is forcing them to. Yet people keep on buying more Chipotle.

So, Chipotle, they keep rolling with the prices. It's the Rolo economy. For our second story, the government just said that it solved a Bitcoin hack with the hugest seizure of stolen money in the history of the world. This Bitcoin bad news could actually be good news. Also, Jack, this isn't a news story. This is the plot of the next Nicholas Cage movie. Well, no, it's the plot of the next Hulu and Netflix at the same time documentary series.

It's like National Treasure 8 that's going to be streaming straight to you. First of all, Snackers, we should talk about the protagonist. Jack, who are the protagonist? here. Heather Morgan is the suspect in this case and the lead character. Yes, she is. She refers to herself as a fearless entrepreneurial spirit who enjoys rap and designing streetwear. Yeah, she has

a legitimate background where she's a contributing writer to Forbes magazine and she is a subpar rapper on YouTube. It's like a side hustle. We watched a video. She rhymed Yodel with Hodel. We didn't know you could rhyme Hodel. Actually, Jack, her rapper name is technically the crocodile of Wall Street, Versace

Boudin. She has two names in the rap name. All right. Now, she's married to guy named Ilya Dutch Lichtenstein. Yeah, now he's an angel investor. You can check out his LinkedIn. He loves LinkedIn. And he's active on Twitter like, you know, plenty of your friends are active on Twitter. The antagonist of this story is dozens and dozens of law enforcement officers in the FBI, Department of Justice, and Homeland Security. And they are proud of taking down what appears to be Bitcoin Bonnie Crypto Clyde and 119,754 Bitcoin. That is quite a trailer. Do we have your attention, Snackers?

Can we get Hans Zimmer to take it from here? Now, Jack, what's going on with the plot now that we know the characters? Back in 2016, a cryptocurrency exchange called Bitfinax in Hong Kong got hacked. And what was then, 71 million worth of Bitcoin got stolen. Jack, how much is that stolen Bitcoin worth today? Today, those stolen Bitcoin are worth $4.5 billion. So much money. But here's the problem with stolen money, Snackers, just like in general.

it's dirty and the government can trace it if it's dirty. So the suspects in this case who stole the Bitcoin allegedly tried to clean that dirty Bitcoin money so the government wouldn't find it. The way they did this is the bad guys took the stolen Bitcoin and just put it through thousands of transactions and conversions to things like gold and Ethereum and way other things.

And the bad guys were watching this money the whole time keeping track of it but trying to clean it by making it so distant from the initial hack. In fact, Jack, did you see that at one point they actually turned all this into a whole bunch of Walmart cards? I did read that. I read that in the FBI's report. It went from Bitcoin into Walmart gift cards. It's a lot of fun in IL-6. But the FBI is very proud of themselves. They say that they traced the money the whole time. They followed it through all those thousands of accounts to try to figure out who was behind it.

And they noticed that some of that money ended up in accounts controlled by Ms. Heather the rapper and her husband, Mr. Dutch. And that's why they're being charged with money laundering. Which leads to our finale. Jack, what's the finale? this fantastic film. A simple arrest of these two wasn't enough. No. The FBI wanted true justice to be served. So instead of cuffing the rapper and her hubby, the FBI got a search warrant instead. They got into Ilya's computer with that search warrant and they found some digital keys to his crypto wallets. And then they seized, get this, $3.6 billion of stolen Bitcoin. They found the stolen Bitcoin from six years ago. We're talking about the biggest seizure of stolen goods.

in the history of the world of goods. Government officials have never found this much stolen money before. So, Jack, what's the takeaway for our buddies over in crypto? Bitcoin's short-term bad news is actually long-term good news. So the suspects allegedly stole a whole bunch of Bitcoin and then laundered the money. That is bad news for Bitcoin. Yeah, crypto critics have been saying for years that hacks and illicit transactions and crime are a reason to avoid crypto.

But funny thing Jack and I noticed, the Department of Justice said three times in their press release that they followed the money trail. Classic FBI investigating. They followed the money. They're like, that's us. That's what we do. But with Bitcoin following the money, how do you do that? Yeah, well, there's a blockchain technically, but the blockchain that underlies Bitcoin is

a permanent public record of all the Bitcoin transaction. That's how the FBI could trace the crypto crumbs, just like they've always traced dollars for years. And that's why the Attorney General declared this week, cryptocurrency is not a safe haven for criminals. So we're thinking it's ultimately good. good for Bitcoin if bad guys feel scared about doing crime in Bitcoin. Jack, the best thing for Bitcoin, maybe the bad guy's getting caught.

It reveals that it's safer for the rest of us. For our third and final story, the Oscar nominations are out. Streamers look like they won again, but they haven't totally won. So let's just focus on the top five biggest awards at the Oscars. Jack, you got the best picture, best leading actor, best leading actress, and then the supporting actor and actresses. Exactly. And streaming, if you think about streaming, used to be for TV shows and schmovies, like House of Cards and Orges, Nennau Black. Yeah, those aren't Oscar eligible, although we do enjoy indulgence in those movies.

Yes, we do. But streaming is now very Oscar eligible. Thanks to the pandemic, movies are going straight to streaming. It's so facto, movies are streaming. No surprise, streaming movies, movies produced by the streamers, they got by far the most nominations in this year's Oscars. I can look at this and we're like, you know what? Streaming won the Oscars. Give them the trophy. Let them walk away. You can play the acceptance speech. Exhibit A, Netflix. Power of the Dog took home 12 nominations, which is the most of any movie. I'm sorry, can we talk about Cumberbotch and is Adam's Apple? Oh my God. Why do Brits do American accents so well? And why is it so hard for

the reverse to happen? Chris Renold is not making a Batman movie unless he has like a fleet of Brits at hand, like on call. That's true. He's bringing him in. Yeah, Batman. Sorry, the actor. British. Snackers, this is Netflix's third year in a row with the most nominations of any movie studio in the entire United States. And that's thanks to the budget. They're spending twice as much on movies as the second most spending studio. Tim Cook, can you step up to the mics and read the speech for us?

Apple, Jeff? Apple's got a movie studio. Apple got a record six nominations for the Oscars. And that's just two years after launching Apple TV Plus. Yeah, Denzel got a best actor nomination for Macbeth. Jack. Okay. I feel like I wasted two hours watching that movie.

Is that a day going to see before to me? Wasted two hours. And Coda, another movie on Apple TV Plus got a Best Picture nomination. Now Disney Plus, they're owning the kids category. Disney Plus, not Disney. Luca and Conto, they have three animated movies that got a ton of nominations. Someone showing off their new dad. How's my pod son doing?

He's actually too young to watch movies, but we're getting there. And then, Jack, you got HBO Max. they got Dune. Dune was a winner at the Academy Awards nominations. Ten nominations, and it was the only, you know, blockbuster to get nominated for Best Picture. That worm deserves a nom. But, Jack, how about Amazon? Because even Amazon is involved in the Oscars Aggress.

Never heard of this one, but being the Ricardo's, got a nomination for Best Actor, Best Actress with Nicole Kidman, and Best Supporting. Early takeaway here, Gaga got snubbed. But, Jack, the real takeaway here, what's the takeaway for our buddies over in all of media and entertainment. The Oscars actually pressed pause on streaming this year. Yeah, Snackers, that 27 Netflix nominations, that's like a really high number. It's actually down from 36 nominations last year for Netflix. Amazon Prime and Hulu, their nominations were flat and down from last year as well. Turns out only one best director nomination went to

a streaming film. And most of the nominations for best visual effects, they were straight to theater's movies, not streaming movies. It's easy to write a headline that streaming is taken over and dominating the Oscars. But the traditional box office first movie preferred by old Hollywood, clawed back some gains this year actually. So Netflix, they won the Oscars battle, but they haven't yet won the entertainment war. Jack, can you whip up the takeaways for us for the new Friday? Chipotle plans 4,000 more new restaurants. 80% of them will have a Chipotle.

This isn't Yolo economy. Chipotle loves the rollo economy. For a second story, a major. Bitcoin heist from six years ago seems to have been solved by the Justice Department. It sounded like bad news for crypto. They actually be good news for crypto. For our third and final story, the Oscar nominations got dominated by streamers again. But the Oscars actually pressed pause on streaming's continued takeover. Now, time for our snack fact of the day.

This one sent in by Cooper Redinger from lovely Cedar Rapids, Iowa. There's loads of stadiums with corporate sponsored names. There's so many inks and corpse, but there are only two stadiums in college athletics that are named after legendary black athletes. The first is Jack Trice Stadium on the campus of Iowa State. Trice was the school's first black athlete, although sadly died in a game against Minnesota in 1923. Powerful to have the stadium named in his memory. Now, the second stadium named after a black athlete is Wake Forest Lawrence Joel Arena. Lawrence Joel was a Vietnam War hero who was born in the same town as the school.

And then, Jack, we should absolutely mention Joe Lewis Arena in Detroit. I loved that hockey arena. They actually demolished it a couple years ago. It's so sad. Very sad. But let the history live on. Snackers, you're looking fantastic to end the week. If you haven't yet, you can click to follow us right here on Spotify or on Apple, and we'll get you every day.

Nick and I will see you tomorrow. Remember, Guac. It's always extra. No, it's extra, extra. And before we go, congratulations to Snackers, Coach Enrique and Coach Brad of the Itty Biddy baller soccer club. Another winning season in Fort Lauderdale, Florida. And congrats to Paul G, a snacker retiring early down in Lexington, Kentucky. Happy three-month anniversary to Molly and JJ in San Francisco. And happy birthday to Alex Erasaki over in North Park, San Diego. And to anyone else

celebrating something today, make it a T-boy. Celebrate the wins. This is Jack. Nick and I both own some Bitcoin, Ethereum, and stock of Chiboutle. I own stock of Amazon, Disney, and Netflix, and Nick own stock of Apple. 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 as 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 any of their subsidiaries or affiliates. Investments involve risk, including loss of principle and past performance, does not guarantee future results. Robin Hood Financial LLC, member FINRA SIPC.