The Best One Yet - 🐔 “Non-Chicken Content” — Chick-fil-A enters streaming. Disney’s CEO makeover. America’s colorless cars.

Episode Date: October 22, 2024

Chick-fil-A unveiled their new streaming network… and they’ve got a toy company too.Disney finally announced plans for a new CEO… and it involves Morgan Stanley.Car colors are disappearing across America… because a red car puts car brands in the red.Plus, the 2nd episode of our new show drops today: The untold origin story of Nintendo’s Super Mario Brothers — The most popular video game of all time was invented by an artist living in the forests of Japan. Subscribe to The Best Idea Yet: Wondery.fm/TheBestIdeaYetLinks to listen. Episodes drop weekly. It’s The Best Idea Yet.—-----------------------------------------------------GET ON THE POD: Submit a shoutout or fact: https://tboypod.com/shoutouts FOR MORE NICK & JACK: Newsletter: https://tboypod.com/newsletter Connect with Nick: https://www.linkedin.com/in/nicolas-martell/ Connect with Jack: https://www.linkedin.com/in/jack-crivici-kramer/ SOCIALS:Instagram: https://www.instagram.com/tboypod TikTok: https://www.tiktok.com/@tboypodYouTube: https://www.youtube.com/@tboypod Anything else: https://tboypod.com/  Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Tuesday, Tea Boy, Tuesday, October 22nd. And today's pod is the best one yet. This is a T-boy. The top three pop business news stories you need to know today. Wow, you're not going to say anything. I can't believe you didn't say anything. It's October 22nd. Is it your three-quarters birthday? Three-quarters birthday. I'm 75% of the way there, man. Round up to 37. Yeah, it's my Q3 birthday, Jack. I'm expecting a moderately sized gift. I want to cup. cake, not a cake, Jack. In the meantime, three fantastic stories for today's show. What we got on the pod jack? For our first story, Chick-fil-A just announced its new streaming network, but that's not all. Because Chick-fil-A also entered the toy industry. What? In nowhere, no one's covering this. For our second story, Disney finally announced plans for new CEO. Actually, they announced the guy who will hire the next Disney CEO. And the future of the World's most creative company will depend on one New York banker.

And our third and final story. Yeties, have you noticed that every car these days is either white, gray, or black? Jack, we did just lease a new black car. Well, it's not just you. Get this, car companies are killing colors because a red car puts them in the red. But Yeties, before we hit that wonderful mix of stories. Fantastic mix of stories. No one else is doing this mix.

Love the mix, Jack. Last week, we launched episode one of a new weekly show, the best idea yet. The best idea yet. The untold origin stories of the products you're obsessed with and the people who made them go viral. Well, guess what? What, Jack? We just hit number five on the business podcast charts. One episode in, eddies.

We've dropped one episode, and we already hit number five top business podcast. So we figured, hey, let's drop episode two. That's right. Today, we're dropping an episode number two of the best ideas. idea yet. The wild true story of Super Mario Brothers. Let's play that theme music. Or Jack, what about this theme music? Yeah, let's do like the darker version of Mario's theme music. Because Yeti's Super Mario is the best-selling video game franchise of all time. Over 650 million games have been sold. Jack, you sprinkle on a little context, please. That's 25% more

Pokemon. Sorry Pikachu. But the wildest part about the Super Mario story, what is it, man? It was created by an artist with a banjo living in the woods of Japan. We repeat, the Mario and Luigi Inventor wasn't a programmer. It was an artist from a bamboo forest outside of Kyoto. In this episode, you'll learn how Nintendo began as a playing card company 100 years ago. And you'll learn how Nintendo launched a hotel business that almost made them go bankrupt. And we also discovered Nintendo's business strategy for unlimited creativity. It's called The Infinite Game. So, Yetis, episode two of our new series drops today.

After today's show, click the link in this episode description so you can check that one out too. Super Mario. It's the best idea yet. And you can listen free anywhere. You pod right now, right after this show, wherever you want. But in the meantime, Jack, we got three fantastic stories for today's team boy. Let's get them, man. song two boys from the northeast met in the dorm they had an idea to cause a cultural storm it's the best one yet but the best is an norm jack nick that's it i don't even think they need to practice

50% that's a fat tip tea boy city on your at list if you know you know cause we're ready to go we can't wait no more so just start the show start to show first a quick word from our sponsor For our first story, Chick-fil-A is officially launching its own media and entertainment app. Jack, what is going on here? Chick-fil-A TV shows and podcasts to go along with Chick-fil-A board games. That's right, that second one, that's a shocker, too. What's going on? We'll explain.

But Jack, let's start by seasoning on a little context, please. Chick-fil-A is the third biggest restaurant chain in America by sales behind only McDonald's and Starbucks. Okay, sales of Chick-fil-Aid doubled in the last five years to $8 billion. We should point out, they're the most profitable restaurant per store than any restaurant in the nation. And now, yeties, you may remember that two months ago, there was a leak that Chick-fil-A was going to enter the streaming wars. It was funny. Our assumption, we covered it in the intro. Yeah, we did.

We figured they would glorify chicken-loving culture to pump their chicken sandwich sales. The Netflix and Nuggets, that's what we were expecting. A spicy drama about fried chicken. Call it sauce in the city. If they don't call this new Chick-fil-A streaming network, Poultry Plus, we need to speak to a manager. Dude, it's actually free. So Plus implies you have to pay, so they're just going to call it poultry.

Either way, they can have my credit card. In the meantime, here is the official news. Chick-fil-A actually is launching an entirely new entertainment app. It's called Play, and it's going to be focused on content for families in audio and visuals. And hold the waffle fries because Chick-fil-A is paying $400,000 per episode. Jack, that is MGM money? Like, is James Cameron directing the next Chick-fil-A-fried thriller? What's going on over there?

Matt, we should point out, Chick-fil-A's mission, it's still on their company website, and it's still religious. Chick-fil-A's mission is still, quote-unquote, to glorify God by being a faithful steward of all that is entrusted to us. But this content on their new streaming app has nothing to do with church. But the bigger surprise? This new Chick-fil-A content, it also has nothing to do with fried chicken. The first show is called Legends of Evergreen Hills. It's an animated series about a magical forest that children can explore.

Their first podcast is called Ice Lions. It's about a Kenyan teenager who starts Africa's first hockey team. Kind of sounds like Mighty Ducks for Mid-Africa. But for all the millions of dollars that Chick-fil-A is spending on content, not a single chicken, biscuit, or chicken nugget appears in these episodes. Jack and I jumped in T-Boiced out, we cannot find a single calorie of food that is mentioned in any of these original Chick-fil-A contents. So it's not Paltry Plus at all. That's why they're just calling it, play.

In fact, this isn't the first time we discovered that Chick-fil-A has done something like this, is it, Jack? Have you heard of Pennycake, Nick? Besties, have you heard of Pennycake? Jack, we should explain. Pennycake is a toy company that sells $20 puzzles, cards, and board games. It looks like a Mattel spin-off. It's pretty professional products. It looks like a Mattel spin-off.

It looks like Hasbro without the hash brown. But it's not. It's owned by Chick-fil-A, even though the toys don't have a single element of Chick-fil-A branding on them. There's nothing Chick-Fillet on this company's website on their products, on their board games, and yet Chick-Fillet is making these board games.

Why is Chick-Fillet making board games that don't even promote the Chick-Fillet brand expressly? Well, the CEO of Chick-Flea just revealed something interesting. He said their research shows, what families do after they finish eating. They either watch TV as a family or play a game. So Chick-fil-A's board games and Chick-fil-A's brand-new TV shows? It plays into that.

They're intended to be viewed and listened to by families during dinner. Bestie's at it all up, and you're going to spend more time watching a new Chick-fil-A TV series than you did at the Chick-fil-A drive-thru. And if you think the strategy of, like, TV to drive chicken sales is far-fetched, we've got a takeaway that will convince you. So, Jack, what's the takeaway for? Our buddies over at Chick-fil-A.

What Chick-fil-A is doing is the soap opera strategy. Yeties, you know soap operas. From like days of our lives to Bravo's Real Housewives. Soap operas, they're a staple of our life. But few know that soap operas are called soap operas because of soap companies. Get this. Back in 1931, Proctor and Gamble, the Consumer Goods Company, invented the soap opera to sell more soap.

Proctor and Gamble's strategically crafted TV shows and radio programs to appeal to women who are at home. Procter and Gamble made plots about families, romances, and housework to connect with those viewers and then subtly positioned their P&G soap. True story. Pretty wild. It's wild. So what Chick-fil-A's doing, it actually has a precedent. The soap opera. Chick-fil-A, they're creating family-friendly content with a hopeful side of fried chicken. For our second story, Disney just announced a plan to replace legendary CEO Bob Eiger. And that plan depends on a New York investment banker. It's not our buddy Timmy. We shouldn't clarify that.

But Yeti is Jack and I'm going to have we got to share something with you. Jack, what is the best job in business? Life goal? Become a member of a board of a big company. Oh, yet is if you're on the board of a company, it is a part-time job. You attend like eight meetings a year and you get paid four. $400,000 every year. Nick, it's extremely part-time.

You only attend eight meetings a year. Can you print off the slide to me and then cash that quarter million dollar check, please? But yeah, it is. The main responsibility of that board of directors is to hire and fire the company's CEO. Is the CEO going to be Kendall Roy or is the CEO going to be Shivroy? That's basically the biggest question of every board of every company. The board, it's basically like Snow White and the Seven Dwarves. If Snow White is the CEO, then the board is the dwarves who protect her.

I think I prefer the succession analogy. Well, Grumpy, the dwarf is going to not be happy about that, Jack. Yet is Disney. They got a board of 11 members. And the last time, Matt Bored a CEO, they botched it. After less than two years, they had to bring back the previous CEO, Bob Eager, who remains the CEO today. But here's the news.

Disney's board just announced that their current CEO, Bob Eiger, he's going to step down in 2026. And the board selected a new president. new chairman to decide who will replace Bob Eiger in 2026. And that guy, the new chairman of the board, is a New York bank dude. We used to be New York bank dudes for a short period. So we know what you're wondering here, Yetis. Why is the world's most creative company bringing in a New York financier to choose its next leader? Because James Gorman brings a special set of skills. James Gorman, formerly of Morgan Stanley, is a master of the corporate makeover. That's right. For 13,

years, James Gorman was the CEO of Morgan Stanley. He took over the company in the depths of the financial crisis. And what was his big decision back when we were working in finance, Jack? He decided that Morgan Stanley was too reliant on volatile investment banking. Totally. Mergers and acquisitions, sales and trading. It was too much drama. It was too wild. So this former CEO of Morgan Stanley, he pulled off a major corporate makeover. He made the company more boring, but more steady and more profitable long term. Here's what he did, Specifically, he pivoted that bank business to wealth management. And today, wealth management is a majority of Morgan Stanley's revenue.

And that decision years ago, it's why Morgan Stanley has now surpassed Goldman Sachs as New York City's number one investment bank. Because of wealth management. Just sit there and take a fee on big pots of money. Not too shabby, but yet he's now, Disney is the company that really needs a corporate makeover. So Gorman's new job, it's not to turn more. Morgan Stanley around, it's to turn Disney around or at least pick the CEO who's going to do that.

Because old CEO Bob Eiger is going to be out of here for good in 2026, unless he comes back. To sign autographs as a character at Disney World. So Jack, what's the takeaway, which we would love his signature? What's the takeaway for our buddies over at Disney? Disney's business has three magic wands, but streaming broke two of them. Yet he's interesting thing. Disney's stock price, it's half of what it was in 2021, back when Jack bought it because the profits peaked in 2019 before Jack bought the stock. Dude, I bought it like 23, 22.

Yeah, you keep telling yourself, Jack. So here's the question. How did we get here? Disney has a 100-year history of evolving its business model. Beginning in the 1920s, way before I bought the stock, Disney did movies. That was it. Then in the 1950s, Disney added theme parks, and in the 1980s, it added TV like ESPN and ABC. Those are Disney's three magic wands, movies, theme parks, and TV networks.

But here's the problem. Today, two of those three magic wands, movies and TV, are getting threatened because of streaming. Which leads to the big question. How can they evolve Disney's incredible movie and TV brands into the streaming era? Well, the answer. It isn't simply Disney Plus because Disney Plus streaming isn't bringing in any profits. So finding a solution is the job that whoever James Gorman, the banker, decides is Disney's next CEO. Because Yeti's streaming, it broke two of Disney's three magic wands.

Help us, Tinkerbell. You're our only hope. Now a quick word from our sponsor. For our third and final story, in the past 20 years, colorful cars have disappeared. Just 20% of cars today are something other than black, white, or gray. And the reason why cars are going colorless has nothing to do with paint. This is Jack. Can I disclose something? Please, Jack, this is an open space. Huge moment for my family and my childhood was the purchase of our 2001 brand spankan new, Dodge Durango. Okay, what did that thing look? What kind of color coding we're thinking on that thing?

Fire engine red. And Nick, we got three feet of snow the day we bought the car. Oh, so it stood out. I just sat in the car in that so checking out the heated seats. It was iconic. Okay, funny, Jack, because when I was growing up, we had a bright red Toyota Land Cruiser, and you saw it coming from like six miles away. actually called it the fire truck. And red means stop, which is added safety when you're on the road. You could stick like half a hockey team in there. But yet, ladies, if you have noticed that there are fewer red cars on the road, it's not just you. In 1999, 30% of cars sold were red. Red was the number one color back then. Red was the most popular colored car in America. Everyone in the 90s was buying red cars. But today, it's just 7% red. And Nick, it's not just red. It's actually

all colors of the rainbow. That's right. Red, blue, green, you name it. Colored cars are now less than 20% of all cars sold. Colorful cars have gone from half of new cars 20 years ago to 20% today. And now the most popular cars in America are black, white, silver, and gray. Remember the first Honda Insight, that Kiwi Green hybrid car from the 90s? Kiwi green? Not happening anymore. Not going to see it. Yeties, the data came from Business Insider.

Colored cars have fallen from 50% of cars. to 20%. America has gone monochrome. We used to look like skittles with our cars. Now we look like a typewriter. This is Jack. We just traded in our white car for a gray car. We did just trade in actually our white car for a black car, Jack. We're both part of the problem here, Nick. We're part of the problem. But yet, he's, all this interesting data comes from business insider. And Jack and I got curious and we jumped in T-boy style. We noticed one reason for the monochrome car culture. As tech decolorized, so did Toyotas. Besties, 2002 was the first. year that white, black, and gray took the top three collars for American cars. That same year,

the iPod had its first year of sales. And guess what colors the iPod came in? What did it coming, Jack? White, black and gray. So car companies basically saw what Apple did and said, yeah, I'll have some of what she's having too, Tim. They said me too. And then 10 years later, Tesla reinforced the decolorization of consumer products. Because in 2012, Tesla's Model S sedan came in just four colors and what were they jack black white silver and gray you're driving a white model why like we've been doing we're driving the most basic car in the bay area jack so the reason cars are colorless today may have something to do with silicon valley tech gadgets but the bigger reason is actually the cost and that's our takeaway so jack what's the takeaway for our buddies who are everyone buying a car

inventory is the scary goes to business because it will haunt you forever Yeties, customers want variety, and they use color to express themselves. Like, Jack, your new car, that is technically limestone, isn't it? It's limestone, which is outdoor chic. But the more colors that a company offers, the bigger chance they are left with unsold inventory, and that is costly. Picture a J. Crew sweater. Let's say it comes in a bunch of colors, like Deep Merlot. Love that color.

And Heather Birch. Adore it. It comes in black, too. I gotta have it. It's a staple. Gotta have black. and also Kiwi Green. Oh, don't know if I need that color, Jack.

Yeties, if J-Crew misses on a color like they did with Kiwi Green, they just put that version on the clearance rack and it sells quickly. But a car company can't put a vehicle on the 40% off sales rack because there is too much money at stake with every car. They just can't discount them. Instead, car brands are now offering fewer colors to minimize the risk that cars are left unsold on the lot. Oh, and if you do insist on an exciting color,

then they are going to charge you a premium. for it. It's the old switcheroo. Colors used to be a cost center for car companies. Now they're a profit center. If you want to get that in lightning magenta blue, you're going to have to pay extra for it. $2,000 probably. Because Yet he's holding inventory, it's

costly. Inventory will haunt a business like a ghost. That's why car companies are cutting out colors. Jack, could you whip up the takeaways for us for T-Boy Tuesday? Chick-fil-A launched their own streaming app called Play. To be consumed by families during and after

dinner. Chick-fil-A, they got precedent because it's the same strategy as the soap opera. For our second story, it's Disney's CEO. He's going to leave in 2026, and they hired a former banker to pick his replacement. Disney's got three magic wands, but streaming, it broke two of them. And our third and final story is cars. They're not colorful anymore. 80% of cars today are black, white, silver, or gray. Roy G. Biv, not happy about this, because unsold inventory is like a ghost. It'll haunt a business forever. But Yeties, this pod's not over yet. Here's what else you need to know today.

First, Wall Street just completed its six straight winning week. Not too shabbyjack. The NASDAQ, the Dow, and the S&P 500 are all at record highs. Wall Street, October looks great on you. Keep doing what you're doing. Second, Elon Musk is making just as many headlines on the campaign trail as he is in the corporations. To support Donald Trump, Elon is giving away $1 million. a day to people who help him get out the vote.

Technically, it's illegal to pay people to vote. So Elon is using a loophole. Here's what he's doing. Each day, he's picking one person to get a million bucks if they pledge to support a petition for gun rights and free speech, which... Pretty convoluted. Probably going to get sued.

And finally, a rare copy of the U.S. Constitution just sold for $9 million. While this part, this copy of the Constitution was discovered by accident when a whole... home was finally sold. It was found on a farm in North Carolina, along with like a letter from George Washington asking someone to ratify the Constitution. Now, in all, a hundred copies of the U.S. Constitution were printed. Only 14, though, have the original signatures from all those signers. And only one was saved by Nicholas Cage. Apparently, someone hasn't seen the sequel.

We behold these truths. That's a Declaration of Independence, but nice try. Amendment 6. Now, time for the best fact yet. This one set in. by all the New Yorkers in New York City. What do we got, Jack? The New York Yankees and the LA Dodgers are meeting in the World Series for the 12th time against each other. But here's why this is pretty wild. What are the details, Jack? The New York Yankees have faced the LA Dodgers four times in the World Series. But the New York Yankees have faced the Brooklyn Dodgers seven times in the World Series. And those 12 times that they faced each other is more than any other team has even made the World Series.

What Jack and I are saying here is that these two teams together have been in more World Series together than any other team has been individually. 12 times. It's the original Subway series. Also, Jack, New York Sports on a roll right now. Liberty just won the WNBA. Rangers are undefeated this season and the Knicks probably going to win their first game. The Giants and Jets, not so much.

Yeah, the Giants are kind of looking like the Jets. And the Jets, they look like the Jets. Yetis, you look fantastic for T-Boy Tuesday. And thank you for helping our new show, The Best Idea Yet, hit number five in business. Top 100 overall. Pretty pretty good. Too shab.

It's a win to celebrate, Jack. And episode number two of that new show, it drops right now. It's live, baby. You can listen free wherever you get your podcasts. So Yeties, check out the best idea yet to listen to the untold story of Nintendo's Super Mario. brothers. We got a link in the episode description. And Nick and I, we'll see you tomorrow. Right here, as usual, can't wait. And before we go, a shout out to Yeti Rob Starkman, who just got a partnership with J.P. Morgan Chase for his startup, Rockham Sox. Rockham Sox. They're going to be on

Jamie Diamond's feet any minute. Jamie. And Michelle Kim Cullen, aka the Space Cowboy, has a birthday to celebrate down in Redmond, Washington. Happy birthday to Brandon Selgado in Anaheim, California. And just and Rieo are celebrating a two-year anniversary together in Richfield, New Jersey. And a huge shout out to Heather Valentine, who just found out she is cancer-free, baby, down in San Jose. Heather Valentine, congratulations on that epic life win. We are celebrating it with you. And to anyone else who's celebrating something today, make it a to celebrate the wins. This is Jack. Nick and I both own stock of Apple and the ETFs of the S&P 500, and I do own stock of Disney. and it's up 1% since I bought it.

Average weighted share situation. Can we audit that portfolio, please? All right, Jack, hand over the numbers. Let's see the receipts.