The Best One Yet - 🌮  “i’m at taco bell, what do you want” — Taco Bell’s iPhone architecture. Fanatics’ $13B jersey. Intel’s Captain America mojo.

Episode Date: March 25, 2021

The newest store concept from Taco Bell is so innovative, they had to buy a tech startup and hire 1,000 bellhops. Intel’s splurging $20B to get its mojo back by being less Geek Squad, more Captain America. And Fanatics hit a $12.8B valuation mid-March-Madness because it’s snagged a monopoly on your jerseys.$YUM $INTCGot 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 Thursday, the new Friday, March 25th. In vaguely markets-related news, the Suez Canal is blocked by an enormous cargo ship. 12% of world trade, basically dead in the water traffic jam, Jack. Yeah, this is also a great excuse for gas stations to jack up the price to $3 a gallon. Or $14 a gallon in California.

For our first story of the best one yet, Jack, what do we got? Taco Bell restaurants 2.0, they're not optimized for diners. They're optimized for phones. They just bought a tech startup, and they're hiring, get this, a thousand bell hops. For our second story, Intel, is splurging $20 billion to get its mojo back. First of all, you nailed it. Second of all, less geek squad, more capped in America.

That's the theme. For our third and final story, just as your bracket is breaking. Fanatics hits a $12.8 billion valuation. Kansas, in a year with way less sports, Fanatics is winning with way more sports. But before we hit those three-story Snackers, Kansas, an internal memo from Instagram just leaked to our buddies over at BuzzFeed News. This is wild. Facebook is building Instagram for kids.

We're talking Instagram Jr. Over there. Yes. And the leaked memo from Instagram, it said, youth work is a priority for Instagram. Youth work sounds like a term they learned at algorithm camp over in New Hampshire. I got in trouble. I had to do 10 hours of youth work. You don't want to be working on Instagram youth work.

Now, by the way, Snacker, something about Nick and me. happened to be the first generation that got access to Facebook. They checked our old.org.com email addresses. This is a mediocre humble brag. We ruined that first five million. Not too shabby. But we're also one of the oldest generations of kids to get phones. I was 18 my first flip phone. That's just a brag. That's not even a humble brag. Back to the story here. The comforting news about Instagram kids. Facebook will build transparent tools focused on privacy. But the concerning news about Instagram kids? is going to build transparent tools focused on privacy. Instagram, kids, it is the digital equivalent of a man with a van.

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 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. Right. Snacks is diet. Adjustable. Business news for you. Robberhood Financial, LLC, member FINRA slash SIPC. For our first story, Taco Bell just made its biggest moves in a year. We're talking Taco Bell 2.0, Jack. Now, Taco Bell makes the most headlines for late night eats and calorie collabs that we mentioned in the intros of this pop. Jack, who could forget the Cheetos Mountain Dew Césadilla of 2017?

We all needed that. I can't believe civilization lasted this long without it. It's owned by Yum brands, a publicly traded company. That has an exclamation point in its name. It's actually Yum brands. The apostrophe is after the Yum. Yeah, they own Pizza Hut. They own KFC. They own Taco Bell.

They got them all. In the Northeast, they had all three of those in one. We called it Can Taco Hut. This company is huge. 50,000 restaurants total, which is more than McDonald's. They haven't had as profitable as McDonald's over there. Yeah, Yum stock combined. It's worth 20% the market cap of McDonald's.

But Jack and I noticed two wild headlines with Yum this week. First of all, Yum just bought a company called TikTok. TikTok, not TikTok. Oh, yeah. At you is critical. Not a no. It's an Israeli company focused on conversational commerce.

That's what they call. Again, TikTok, not TikTok. Basically, they want to let you order three crunchy tacos as easily as sending a text message. Yeah, they whip up these order bots on text, WhatsApp, Facebook message, and that's how you can order within a social media app. Right. So you'll see a Taco Bell ad in your Instagram feed.

You'll click the order. order button. Delicious. You'll click the things you want, like the gordita. Why not? And you'll click your save credit card information, confirm the store, confirm the location, and never leave Instagram. Boom, it's like your buddy texting you.

I'm a Taco Bell. What do you want? It's that simple. It's conversational commerce. Ironically, you can't use TikTok on TikTok, we should point out. And then we noticed a second fascinating headline from our buddies over at Yum and Taco Bell. A store concept, a new store concept that we're calling Taco Bell 2.0. Yeah, and it's not like your typical.

drive-thru. They basically solve the number one drive-through problem of all time, Jack. Darlene. Yeah. Darlene is the bottleneck. She can't feed people their food quick enough, and so there's a long line of cars. You're like yelling into a megaphone. You've got six Camry's honking behind you. It's brutal. So Taco Bell is hiring a thousand bellhops this summer. Correct. We're going to run around. They're going to scamper from car to car, taking the orders of people through their window on an iPad. No joke. We're talking bellhops like A&W, but less roller skate charm, more transactional. baritone expediency. Okay, so news headline number one is basically trying to get people to

order Taco Bell on their iPhone. All right, so news headline number two, Jack, basically, if you don't order ahead on your iPhone, we're going to make you order on an iPad. So what's the takeaway for our buddies over at Taco Bell? A future trend here, iPhone architecture. iPhone architecture, Snackers, you've seen apps designed for your iPhone. But this is one of the first examples of a physical store totally designed for iPhone optimization. Jack, we're talking one square. inch apps that determined the blueprint of a 1,000 square foot construction project, that is Taco Bell 2.0. This store concept has pioneered iPhone architecture in the food and beverage industry. But here's what we're thinking. Once it's proven with tacos, maybe this will carry over to tank tops and toiletries.

Look out for the first iPhone optimized old Navy store. Jack, can I introduce you to the Android-adapted Walgreens around the corner? It's not just mobile optimized stores. We're talking iPhone, designed, and built buildings. phone architecture. For our second story, Intel is splurgeon $20 billion to get its mojo back. It wants to be the Captain America of America's chip crisis that we're in right now. That's how you know, it's an aggressive xylophone. I kind of like, I mean, it works.

I like what you did. Snackers, 2003 is back when Intel was a corporate beast. It was one of the 10 most valuable companies in the world back then. Yeah, since 2003, stock value has grown just to get this only. 42% in 18 years. That is less than 2% average growth for the stock per year for 18 years. That is paltry. It is. If your stocks don't grow for longer than four years, consult the doctor. If instead of investing in Intel, you'd just put your money in the S&P 500, it would have quadrupled in the past 18 years. Yeah. So they want to make some changes. They want to turn things

around. They bring in a new CEO, Jack. He has the floor. Well, he made a keynote speech on Tuesday to announce Intel's ambitious turnaround strategy. 38th day as CEO, he had a new guy, Pat Gelsinger, new CEO, he went deep into chip tech in this big speech. Pat Gelsinger doesn't mess around. And if you enjoy taking apart and rebuilding circuit breakers, you would have loved this keynote speech. You got to watch.

Yeah, you would have. I was lost. We had no idea what he was saying. Honestly, this is what Intel wants to do. They want to feed two birds with one scone by spending $20 billion on two new factories in Arizona. First, they're going to win brownie points from the jury. Joe Biden White House and other fans of Made in USA stuff.

And second, they're going to address the key chip shortage that stopped U.S. car production. Intel's new CEO also announced that he's trying to win back its X. And he's going to do that by courting their ex's current significant other. Let us explain. From 2016 to 2019, Intel was the chip inside all of our iPhones. Thank you for the setup, Jack. Then Apple broke up with Intel to start dating Qualcomm because Intel, Intel couldn't keep up and make cutting-edge 5G chips. It was kind of sad. Okay. So get this. Now

Intel is basically hitting on Qualcomm drama. They're going to let Apple's present lover use Intel's factories to manufacture their chips. Oh, and by the way, Intel is now hiring the Mac guy who used to do the Mac ads, but to do them for Intel instead. He was so cool. He had a t-shirt. The other guy had the suit. But sounds like a Bravo show. So Jack, what's the takeaway for our buddies over at Intel? Intel thinks it can be captured. in America. The hero of the West's chip crisis. I hear the number snackers. Asia dominates when it comes to chip production. 80% of the world's semiconductors are made in Asia with just 15% in the United States and 5% in Europe. And you may have noticed Congress and the president, not exactly

thrilled lately about being so relying on China. So guess what? Intel has all of that 15% of the world's capacity in America with plants in New Mexico, Oregon, Arizona, and Massachusetts. So for the first time ever, Intel is going to manufacture chips for other companies, including its own rivals. Intel is going to cash in on the geopolitical value of being the only U.S. chip making company. Let's Geek Squad, more Captain America. For our third and final story, the Don of the Sports jersey's Fanatics just doubled its valuation to $12.8 billion, Jack. Even though we basically have no sports this year. Let's go back 10 years, let's say 2011. What's going on?

eBay. It was struggling with their online auctions. They actually had their own sports apparel business that they sold for $277 million. And the man on the other end of that transaction, Michael Rubin, future owner of the 76ers and that company that was known as Fanatics. Yeah, it's now Fanatics, and it's now worth 50 times more than what Michael Rubin bought it for from eBay 10 years ago. And honestly, Jack and I could totally flush out the business plan here with like three different case studies and a whole like NBA workshop, but it's pretty simple fan gear. We're talking Henrik Lundquist jerseys. John Carlos Derton, replica t-shirt for 32 bucks. Can I interest you in the Yankees pinstripes, Jack, they've got a Florida Gators, Vineyard Vineyard Vineyard's Collaboration

Flipflop. Now, 80 million fans have bought something from Fanatics, and we're wondering, how did this formerly tiny company get so big? And then we're also wondering, in a year where sports had their worst year in history, how did Fanatics have its best year in history? Ticket. Ticket. sales were obviously terrible for the sports industry last year. But TV ratings, even though everyone was stuck at home, they took enormous dives too, which was a shocker. Fanatics, it's a sumo stock. We're straight up missing out. But we can learn a lot just by looking basically at their investors. They got 13 of them. 13 investors aren't missing out, including Fidelity, SoftBank, and Thrive Capital, who participated in the latest fundraising round. But interestingly, the other investors

are the NFL and Major League Baseball. Funny because Fanatic is the exclusive apparel provider of the NFL and Major League Baseball. Jack, I like your intonation change. Are you thinking inside investors inside deals over there, my friend? Yes, the NFL's jerseys that we see on TV, those are made by Nike. You can see the Nike logo on the swoosh, whether you're watching on CBS or Fox or whatever. But here's the thing.

Here is the catch, if you will. Nike only produces the actual game jersey that's worn by the actual players, which is a limited number of people on the field. Fanatics makes all the things. other jerseys, the ones that are available to fans, the replicas, even though the Nike logo's still there, they're made by Fanatics. No joke. Kind of an inside deal. Only Fanatics can sell the Matthew Stafford $99 number nine jersey for the next nine years, baby. So what's the takeaway, Jack, for our buddies over at Fanatics? I'm going to throw a flag on excessive celebration on you right now.

I got very excited. Relationship Snackers are a competitive advantage for Fanatics. Fanatics doesn't have the first mover advantage or the proprietary technology. And honestly, a business school professor would probably like rip this concept apart. They don't even own the rights to the intellectual property. No, they don't. Jacksonville, Jaguars, jerseys. It's both a great scatigories term for something that starts with a jack. Great call jack. And it's property that belongs to the NFL. But the one thing that they do have at Fanatics, it is relationships exclusives with all the leagues beyond Major League Baseball and the NFL. It's not just baseball and football. The NHL, Major League Soccer, the BGA, Ultimate Fighting Championship NASCAR.

Fanatics has the exclusive rights to run their online shops in-life shops and basically sell 100% of their gear. And being the exclusive provider of anything sports-related is incredibly valuable. Fanatics got all these deals because leagues are part owners in fanatics and the interests aligned. Relationships are the reason a sports apparel company doubled its value in the worst year ever for sports. Jack, can you whip up the takeaways for us over there, naughty?

Taco Bell wants you to order on your phone. If not, order on this bell hops iPad. Taco Bell 2.0, the first physical store built around your phone. For a second story, Intel is trying to get its groove back. Honestly, I love this line, Jack. Less Geek Squad. More cap than America bringing back the chips. Don't double dip the chips. Third and final story, Fanatics recent fundraise means it's nearly doubled its value in a year. Relationships. That's a competitive advantage. They got it. Now, time for our snack fact of the day. This one sent in by Allison Swimmer from Lovely Shook. Chicago, which does logistics.

How's your bracket doing? My bracket pulled a glute. Now, the odds of winning the 64 team NCAA tournament is one out of 64. The odds of correctly picking the winner of every game jack? One in 9.2 quintillion. Go Blues is the correct answer here, Michigan going all the way. Snackers, you looked fantastic for Thursday. It's the new Friday.

But we want your snack packs. We need your snack packs. Our favorites are your audio submissions. We do like this. Nick and my vocal cords, they need a break. Every now and then. We love it. We need to take over the snack fact.

So we have a Google form in the notes of this episode where you can submit a snack fact with an audio file. Send us your snack facts. We'll see you tomorrow. And before we go, happy birthday to first sergeant, Hector Sanchez down in Corpus Christi, Texas. And happy birthday to Riley Gaunta in Dubai. And Wynn over in Bangkok, Thailand.

And Ethan Kay in Winchester, Virginia. and James Watkins in Rockwell, Texas. And happy birthday to Tim Guilfoyle in Chicago. And Kate Howell gets two birthdays because she's in the Twin Cities, Minnesota. And Cooper Ritlinger in Cedar Rapids, Iowa. And Adam over in Temecula, California. And Cody Kepner in Austin, Texas. And happy birthday Frank Amaroso in Center Reach, New York.

And Jermal Scarbo in Houston, Texas. Jack Taylor got the new job over in Ottawa, Canada. Not too shabby. Congrats Ryan Riches for getting your real estate license in Denver, And Jack, we got a three-week snack anniversary for Mike Lateras in lovely Boceraton, Florida. Mike's been listening to Snacks for three weeks. Is that what that means? I can't believe it's only been three weeks. That's the most monier of the celebrations. But I love it.

This is Jack, 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. 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.