The Best One Yet - ⚽ “ManU isn’t an exotic puma pet” — Manchester United’s fan brand. Jack In The Box’s influencer restaurant. The 2021 SPAC-down.

Episode Date: June 21, 2021

Manchester United just survived another quarter with no fans, but its brand equity is its fan loyalty. Jack In The Box, Uber, and a TikTok singer just created what we’re calling an “Influencer Restaurant.” And SPACs didn’t just drop last week… they suffered a SPAC-down of awkward headlines.$MANU $ UBER $JACK $ME $BLDE $DKNG $RIDEGot 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. Welcome back. It is Monday, June 21st. Snackers, on concern that the Fed might raise interest rates sooner than expected, we had the worst week for stocks last week since January. Down one and a half percent.

Jack, toss a little context on this for us. I'll say, down one and a half percent for the week. Not too bad. This might just be a reflection that this year has been really good for stocks. Jack, can I get something off my chest? Yes. I love the stories today. This is the best one yet, baby.

For our first story, Manchester United just survived another quarter of no fans in their stadium. Its brand equity is its fan loyalty. For our second story, Jack in the box. Love it. Their stock is trading at a record high under a ticker symbol, Jack. Uber Eats, their orders are at a record high. Jason DeRullo's TikTok is at a record high. Jack, put it all together.

You got yourself a recipe for an influencer kitchen. For our third and final story, we threw a smackdown on the stock market. I think you got to say, spec down. Lordstown Motors, Draft Kings, Blade, 23 and Me. They all had some embarrassing look last week. Yeah, they did. And they're all specs. But before we hit that, again, a wonderful mix of stories today, Jack.

We got the hoarders almanac because it's Monday. Monday hoarders almanac. What do we got? Yes, it's week 66 of the pandemic, which is still a pandemic, by the way. And we've been tracking the things that were out of in this country. I mean, recently it was chlorine and the port-a-potties. They were M-I-A. We didn't have enough of them.

Nick and I also told you a couple months ago, maybe a month ago. That Girl Scouts cookies is nearly a unicorn. Yeah, the Girl Scout cookie business, that's $800 million in sales. We're talking Girl Scout cookie ink. Yeah. And get this, the Girl Scouts now have the opposite of the hoarder's omit. That's right, Snackers. Girl Scout cookies have too many cookies, the opposite of a shortage.

We got a surplus of samosis. Jack, the Girl Scouts got so much extra thin mint, it's technically thick mint. It's not thin mint anymore. Snackers, the Girl Scouts could really use some cookie hoarders. Yeah, they could. Because in our opinion, it's all about offices being closed. I mean, you got to love their office sales team. The Girl Scout cookies, the only ones we ever bought Jack.

I mean, that was from the parents of a Girl Scout in the office. I'm pretty sure the top sellers of Girl Scout cookies isn't like Janice and Cindy. No, it's not. It's vice president and like C-suite executive actually. Mr. and Mrs. Yeah, peer pressure is bad Jack, parent pressure. It's way worse. If you buy three boxes, you boost your chance. is for a promotion by 30%.

So, Jack, the Girl Scouts are sitting on 15 million extra boxes of calories over there. That's $60 million worth of guilt-free product. Jack, can you just throw them up on the shelf for a couple years? Well, not for a couple years. Let's shelf life is 12 months. Can you drop them off at Walmart? Have Walmart sell all these cookies? I don't think that's going to work.

It feels like a takeaway moment. What's our solution for the extra Girl Scout cookies plaguing the nation right now? We have a national challenge. Eat these cookies. Yeah, just eat the cookies. Let's hear our three stores. 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 Robin Hood 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. Robohood Financial, LLC, member FINRA slash SIPC.

For our first story, Manchester United, soccer profits got pandemic. POS. Now, it's trying to win back fan love. After that Super League betrayal from a couple months ago. Jack, popping over to Moscow for this first story, Russian oil oligarchs, they've got, you and I like to say this, they've got three things. What are the three things? Yeah, Russian oil oligarchs. They actually own a lot of like telecom companies, I think. But also oil, yes, they do. Many like endangered species as pets. Pumas, they love the Pumas. And they often own European club soccer teams.

They do. But some of those soccer teams. teams are actually owned by public shareholders. Case in point, Manchester United is a publicly traded stock. Yes, Manchester United. It trades on the New York Stock Exchange, but it used to be owned by the U.S. billionaire family called the Glazers. They decided to IPO the company back in 2012. Now, the Glazer family, they are believed to still own a majority of the publicly traded man-use stock, but the rest of it's out there for the rest of everyone. And they just announced their quarterly earnings report, which unsurprisingly were really bad. I mean, we knew the profits would tank, Jack. It's kind of what everyone would expect. Yes.

Because it was only on May 18th that the first fans returned to their stadium and paid for tickets, the stadium known as Old Trafford. But Jack, this is why I love doing this pod with you. And this is what we love about covering Manchester United. Their earnings feel more like a post-game press conference. This felt like Sports Center because the opening bullets of the earnings report. I'm sorry, Jack. One second. We gave 110 percent.

We're leaving it all out on the field. And we had the whole team. The whole team committed. The earnings report was actually soaked in sweat, Nick. One set, Jack. They had to pad down the financial numbers just in the back. Here's the first bullet point on the quarterly earnings. The team came in second place in the primary league last year,

which qualified them for the UEFA Champions League next year. And this is a big deal because only 12 teams qualify for that soccer tournament and they split the $2 billion in TV money equally amongst themselves. Again, so their sports becomes financial. And then their second bullet here, team viewer. The company team viewer is going to replace Chevrolet as the sponsor of the team. team on the jerseys. Right. And that's good to have a new sponsor because now the fans have to buy a new jersey. Otherwise, they're going to have an outdated sponsor. You know who you are.

You don't want to be that guy, you know, who's three sponsorships behind on the jerseys. So after that play-by-play, we finally got a CEO from the coach, I mean CEO. Yes, good call, Jack. This quote from the CEO, the absence of fans over the past year has proved that they are the lifeblood of the game. Which is awkward because what we're about to say. In the takeaway. So, Jack, what's the takeaway for our buddies kicking and screaming over? over at Manu. For Manu, brand equity is actually fan loyalty. And Manchester United's fan loyalty has been shaken. Snackers, the earnings of Manchester United didn't mention a single time their biggest risk ever, Super League. In April, we covered on this pod news that the top 12 European soccer clubs

had decided to abandon their domestic soccer leagues they've been a part of it. They were going to instead playing one mighty Super League instead. And this was broadly seen as a lot of, selling out of European traditions and selling out of the domestic fan bases for big international TV money instead. And the backlash got so intense that the teams in this new Super League literally canceled the whole thing a day later and walked away. But it didn't end there. In May, fans were still so angry that thousands of Man U fans stormed the stadium to protest the Glazer family's decision of the Super League. Get this. The Man U fans trapped the team in a hotel, forced them to postpone the match

against Liverpool. That's how angry they were. Management is trying to make amends with the angered fan base. They did cancel plans to join the Super League. And then Jack, the Manu team did create that fan advisory board. So you got that too. And they also launched a program that sounds pretty cool. It's going to help hardcore Manu fans earn stock of Manu. So maybe these moves are enough for fans to forgive and to forget Manu's money-seeking moves. Or maybe Manu fans will realize they got Netflix, They got TikTok, they got Fortnite. There's a lot of media and entertainment out there. Maybe they'll stop being Manu fans.

Either way, Manu's brand equity is its fan loyalty. And we'll find out how much fan loyalty remains when the stadium starts filling up next year. For our second story, Jack in the Box, and Uber Eats, and a TikTok influencer influencer all just created a restaurant together. We thought that was wild. That's because the next step in restaurant evolution is influencer kitchens. I mean, Jack, that's a true. We just mentioned, but, I mean, greatest trios of all time.

Can you whip out the whiteboard list we got going? Yes. MJ, Scotty Pippen, Dennis Robin. Great on the court. That's great trio. Then you got Harry Potter, Hermione, and Ron Weasley. That was a great trio. But, of course, who could forget, snap crackle, and pop?

I mean, our moms would not be happy if we didn't mention snap crackle and pop. Stock markets are impressed with Jack in the Box Uber Eats and TikTok. They are. Because Jack in the box stock, ticker symbol Jack, is up 30% this year. That's three times better than McDonald's than Wendy's. And Burger King. I know what you're thinking. No, I don't get a discount because my name's Jack.

But we also know what you're thinking, yes, Jack and I discussed this ticker symbol for like 30 minutes today. And no, Jack in the Box is not willing to give it to me for $100. In the meantime, though, Jack in the Box has a business differentiator. And that differentiator is simply the all-day menu. No one else does this. McDonald's does breakfast before 11, everything else after 11. You hate that situation. Jack in the box has tacos, burgers.

breakfast sandwiches and milkshakes, all available all the time. You'll want the curly fries at 7.15 a.m. No one's going to yell at you and say, hey, you got to wait till 9 a.m. You be you. And last quarter, Jack in the Box made a promise. That promise was menu and a patient. We noticed that in their last earnings report. And then behold, what we noticed this week.

A Jack in the Box, Uber Eats, and Jason Derulo, virtual restaurant. Let that sink in for a second. Jason DeRullo is a singer-wrapper who announces it's his song by going, Jason DeRulo. 11 years have passed after his first album, Jack, the honors. Well, there was a lot of ham horn in every song. It was intense. A lot of that.

That was the pit bull era. But now Jason Derulo has really found his calling on TikTok. He has. His classic Savage Love from just like a year ago, it's gone viral on TikTok. He has 46 million followers on TikTok. And each time he gets a new million, like 44, 45, 46, he launches a new Millie Meal. which is like his own take on crazy food. So it makes sense he would partner up with Uber Eats and Jack in the box

for a new thing he's calling the One in a Millie restaurant. This is a virtual restaurant. Actually, we'll talk about how you do it in a minute. Let's talk about the food. They're highly Instagramable, highly caloric options. I mean, Jack, can I interest you in the bacon churro maple syrup, milkshake option of the Millie meal? Can you liquefy bacon?

I think the bacon liquefies you. Where's the bacon like a sprinkle on top of this milkshake? Bacon sprinkles. That's it. Oh, actually, that exists. It's called Bacon Bits. I think that already exists, but I love your visualization on this. We jumped in Snacks down the Jason Derulo's TikTok account.

He also made a deep dish pizza with burger quarters, chicken wing meat, French fries, and like four or five layers of sauce and cheese. Again, it's not possible to get a fourth Michelin star, but this. may be potential for such a thing. You could imagine the virality of these items if they go on for sale, which they will be soon in one in a milly restaurant. But here's the thing. Can you go physically to a one in a milly restaurant? You can't. They're available for delivery only, only in the Los Angeles area right now, and only on Uber Eats. And when you're tasting the wonderful craft that is those mini chocolate quassant bits, Jack, where are those being made? They're being deep fried in the

friators at Jack in the Box Kitchen. And only at Jack in the Box Kitchen. existing ones. So, Jack, what's the takeaway for our buddies in the entire restaurant industry? The next phase after Ghost Kitchens is Influencer Kitchens. Now, funny thing, we said that back on February 18th when we were talking about Applebee's Cheeto chicken wing virtual kitchen, a new thing. We were talking about a virtual ghost kitchen, which lowered the barrier to launching a new food concept. Yeah, you just need the kitchen, not the whole restaurant. And then boom, maybe a partner with someone for delivery. But Influencer Kitchens optimize that concept even further. Yes, they do. In this new recipe for restaurants, the influencer kitchen, every partner has a role, just like every ingredient in a dish.

In this case, Jack in the box, the restaurant chain, is responsible for the food, the kitchen, and the prep of the food. And then Jack, you got Uber, which is taking care of the logistics. And Jason Derulo is responsible for the viral marketing through TikTok. An influencer kitchen optimizes the competitive advantages of each partner while minimizing the cost. That's why we think this won't be the first influencer kitchen. that you see. For our third and final story, Spax had a really bad week, but the key was they had some really awkward headlines. And that's why stock markets are throwing a spack down on Spack stocks. Does my elbow look good here? What do you think? Is that elbow accurate? Are you doing the

people's elbow over there? I don't know. I never really watched wrestling. I just kind of pretend I do, so you stay happy. It's actually macho man, Randy Savage. And thank you for doing that. It means a lot to Snackers, special purpose acquisition companies, the four biggest words of the year. Yes, it's a shell company abbreviated with SPAC that goes public. Yeah, it's it. But it's just a shell company. Their goal is to acquire a promising private startup. Ipso facto, that promising private startup becomes publicly traded after that acquisition.

But that startup didn't have to go through the expensive and scrutinizing process of an IPO. Now, in the first quarter of this year, this was in. saying, we had a record for SPACs every day, not like over the quarter, every day. That was SPAC a Paloosa. But we have a SPAC drought right now. The numbers are far fewer and the prices of SPAC stocks have plummeted. Yeah, Jack, that index of 50 top SPAC stocks, it's down 19% since February. Not a good look. No, it's not. But last week was an even worse look for SPAC stocks. It wasn't just the SPAC stock prices. It was brutal for the SPAC brands. Okay. Well, it started off with Blade. This is the Uber for helicopters to help your buddy Timmy get from Lower Manhattan

to Montauk as quickly as possible. He's got to get their ASAP. And they had an awkward PR moment because Jack, does the name Simon McLaren mean anything to you? Simon McLaren is actually a fake name given to a fake PR professional within Blade, the company. Yeah, this fake person is part of a true story. Apparently, this was the alias of the CEO of Blade who used a fake PR professional. PR person to distribute quotes for news coverage of blade. Right. So he would call like business insider and give a quote, pretending to be a PR person because he didn't want the article to quote the CEO.

Lying or pretending, you decide they were doing this since 2018. And he admitted it, the CEO. Sorry, Simon McLaren admitted it. Let's go on to Draft Kings, another SPAC that also had an awkward week. Draft Kings, the sports betting app, got Hindenberged last week. Yeah, it did. They were accused by the hedge fund of, operating in a black market.

Their words, and here's the claim, that Draft Kings has a subsidiary that's making half of its sports betting money from very specific countries that are a problem. Those countries have banned sports betting. So the money being made there is dirty money, and eventually there could be a crackdown on that black market. And that's why this hedge fund is betting that Draft King stock will fall because it's operating partially in a black market. But the biggest embarrassment last week for Spax is Lourdes Town Motors.

Lordstown Motors. We mentioned it two weeks ago, but here's the new news. They finally admitted that they've been dishonest all along about the pre-orders they alleged to have had for their electric truck that they haven't built yet. After several contradictions from this electric truck SPAC company, they just set the record straight. Yes, they have zero. Count it zero binding orders from customers that obligate them to buy a car once they finally make them. Lying or misleading, you decide. Blade, draft kings, and Lordstown, they're all publicly traded stocks thanks to the SPACquisitions that have happened. And they all had bad looks last week, but full disclosure.

By the way, Snackers. Yeah. Nick and I have dabbled in a SPAC or two, and it's not looking good for us either. Blade, Chargepoint, Barkbox, QuantumScape, we've invested in all these SPACs and we've suffered along with you. It's the ugliest part of my portfolio. So, Jack, what's the takeaway for our buddies over in SPACs? Spacks get to play by different rules until they start trading. Snackers, specifically, the private companies that get acquired by SPACs, they can forecast exciting,

positive, fun, bullish numbers before they end up going public. It's not as much fun for a company that goes through a traditional IPO. Very true. They generally can only look at the past. They're not allowed to predict the future in their public statements. That's because the IPO process by law and enforced by the SEC require sober, balanced information. a startup getting acquired by a SPAC, they can be willy-nilly. They can talk big about the future, even if that big talk is hollow. So the SEC is now investigating SPACs, but bureaucratic rules are

probably going to delay the final outcome of that until like April 2022. Until we hear from the SEC, you should all know that companies getting spacked, they're allowed to talk more boldly than companies who are IPOing can. When a SPAC starts trading, reality can set in, the stock hype can fall. And that's one reason we're seeing this spack down last week. Spacks literally down. Jack, can you whip up the takeaways for us to start the week? Manchester United is a publicly traded soccer stock.

Its brand equity is its fan loyalty. And man, he was kind of damaged right now. Jason Derulo was good at music albums. He was. Better at TikTok. Maybe best as an influencer kitchen. Influencer kitchens, we think they're the next evolution beyond delivery-only ghost kitchens. And last week, SPAC companies, they looked pretty amateur.

And it's because SPACs, they get to play by different rules until they start trading. Now, time for our snack fact of the day. This one tweeted in by Eric Wardian from lovely Corona Del Mar. There is one usable word in the English dictionary that includes all of the English vowels in order. We're talking A, E, I-O-U, and always why in this case. And that word is facetiously. And we're not being sarcastic about it. this. It really is facetiously. Facetiously is the one English word with all the vowels,

A-E-I-O-U-Y-2. In order. In order. What I love about the snackback, a bunch of Snackers right now are writing it down, definitely double-checking us on this thing. And they're definitely misspelling facetiously too. Snackers, you look fantastic today. Jack, we got willy-nilly on the podcast. It's been way too long. You dropped a willy-nilly. I think we mentioned bits twice. Once for bacon. We did. And once for something else. It was unprecedented since the thigh recording of last week. Snackers, if you haven't yet to help us grow, you can drop down, give us a five-star rating. Leave a review.

We love seeing them. Nick and I'll see you tomorrow. Can't wait, Jack. And before we go, Cece and Sam, happy last day of elementary school. We heard you crushing it over there in Boston. Happy last day. And Keith and Haley, congrats on the first new home over in San Diego. Congrats to Abdallah, who just got a new job at Vimeo in Egypt.

And Sam, he's road tripping all the way from Palo Alto to Miami. the snacks daily. Dr. Jeff just finished his sixth year of surgical training in New Jersey. And Nirvana and Emma one year anniversary over in Montana. Congrats on getting engaged to Danny and Catherine in Los Angeles. To read us the picks, we want to see the ring. Let's see this thing. Happy birthday to Elvara in Bracizumeto Venezuela. And to Maharsh Battelle in Georgia. And to Charles Ferdat in Montreal, Canada. And happy birthday Michael Belmonte in Chicago. And to Henry Ehrlich in Portland, Oregon. And Tanya Esparza over in Seattle.

And Carol Samson, also in Seattle. and Christopher Nyquist in St. Augustine, Florida, and Christine Gee in San Francisco. And Jack, Steve Weller, has a birthday in Columbus, Ohio today, has never missed an episode. Hall of Fame, T-Boy. This is Jack. I own stock of Blade and Netflix.

Nick and I both own stock of ChargePoint and Quantum Scape and Nick own stock of Barkbox. SPAC investments may not be suitable for everybody. Investing includes risk. 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. Okay, dude. You ready? I might say that on the pod just like that. That was a good pitch. Yeah? Mm-hmm.