The Best One Yet - 🧟 “Quibi’s ResurRoku” — Papa John’s epicness. Roku’s little dongle. Oura’s power ring.

Episode Date: May 10, 2021

Wondering what happened to Quibi? Roku bought ‘em... and now the little dongle that could is in 54M homes. Papa John’s just defied every carby expectation thanks to Epic premium-ized pizza (literally). And Oura raised $100M for a fitness tech ring with a formula for scalability. $PZZA $ROKU Got a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYork Want a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9 Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewform Learn 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, May 10th. City of Angels, live from Los Angeles. Oh, yeah, baby. We're recording live from Santa Monica, Jack.

I don't have enough black pants to stay more than a weekend here. People dress dark in L.A. Jack, April jobs report, how are we looking? Well, it was the biggest miss in probably economics history. Instead of a million new jobs created last month, we got 266,000. Jack, stock market, how we looking? Don't care. Just hit record highs because low interest rates are here to.

Jack, this podcast, how we look at TVO-1. Yep, the best one yet. What's our first story today? Roku just popped 11% on word that the little dongle that could has gotten huge. When you control the TV, you control information. Newman, for our second story,

Papa Johns was supposed to see a pizza pullback as the economy reopened. Instead, the CEO saw something, his quotes, phenomenal. Our third and final story is a Finnish startup called ORA, which is scaling fast with a sleep tracking, temperature checking smart ring. If you like it, then you should have put a $100 million ring on it because investors just

it. My precious. But before, we hit that wonderful mix of stories today, Jack, we got ourselves the Monday morning almanac. Yes. The hoarder's almanac. It started in March of last year. It did.

Things have run out because of the pandemic. Yeah, we're run out of things. For example, chicken wings, those are still MIA. Bubble tea tapioca balls. Love them. Still stuck in the Suez Canal. But one thing, Jack and I noticed. the weekend is totally, totally missing in the United States, and it's chlorine.

A headline Friday afternoon on CNBC. A major chlorine shortage is set to spoil summertime fun in the swimming pool. This is going to mess with hot vac summer, Jack. Hey, can you put some sunblock on my back when you have a second and Lysol, everywhere else? Everywhere else. Snackers, 60 to 70% of America's 5.5 million swimming pools. They use chlorine. That's what they need. And the price of chlorine has doubled in the past year. Now, reason for the shortage twofold.

First, consumers, you've been building swimming pools like you're thirsty. Yes, swimming pool is more important than a backyard. So the demand for chlorine is higher than ever in this country. Second, this one's a little rough. A major plant in Louisiana that supplies America with all that chlorine, burn down in August. So supplies down, demand is up, prices up. Take away, the only winner here, eyeball is not going to be red. Snackers, all the leading indicators that were pointing to a pandemic pool party this summer.

But chlorine shortage looks more like a pool apocalypse situation. What product will be next on the hoarder's omelette? Snackers, get at us. Jack and I want to hear from you at Robin Hood Snacks at T-Boy Jack, at Nick of New York, at Jack Kramer. I'm running out of ads. Let's hear our three stories. You're tuned in to 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 Robin Hood family. It's all informational just so you know. We're not recommending any securities. Nope. 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. Robberhood Financial, LLC, member Fenbra, slash SIPC. For our first story, Snackers, you're wondering what happened to Quibi? Gone in 60 quibbys. Roku happened to quibby. Yes.

Now Roku controls 54 million living rooms. Jack, I'm going to have to drop a little planet Earth poetry on you. Roku. It is a tadpole swimming amongst the walruses. Roku smart TV dongle competes head on. with a bunch of trillion dollar companies. Yeah, it does. Jack, can I throw you the space jam lineup on this thing? Amazon Fire TV, Apple TV, Chromecast, Google TV, Facebook, whatever Facebook's going to like copy

to like come out with something similar to all that? Snackers, Roku is somehow surviving among that gigantic competition. They're known for their purple dungle that makes any dumb TV smart. Yeah, with Roku, you can download Netflix, Peacock, whatever other apps you want, you can do it on a Roku. And Roku just announced a 79% to jump in the first quarter. It is the number one smart TV company in the United States. Get this, 54 million households are Roku. Roku is five foot nothing, a hundred and nothing. And yet somehow its stock has 10xed since 2019. Jack, can I take it from here? Rudy, Rudy, Rudy. Snackers, the reason, though, behind this wild growth, here's the funny thing. It actually is nothing to do

with the core product that we just were talking about with Roku. Downgo sales, that's just about. one-fifth of total revenue. That's it. The way that Roku's making all this money, it's actually on advertising and app tax. Like Apple controls the iPhone, Roku controls those 54 million living room TVs we just mentioned. And then the smug team over at Roku with their fancy dongles takes a 30% cut of paid apps that you download on Roku just like Apple just got sued for. And app taxes plus advertising revenue doubled last quarter for Roku. Now, Snack's, we know what you're thinking right now. Here it is. How is a dongle company with a fancy purple dongle making all this ad revenue. Roku has its own app. It's called the

Roku channel, which is free movies, free TV shows supported by a whole bunch of ads. Which then begs the next question, Jack, what kind of video we talk about here with this Roku channel you keep talking about? They're called Roku originals. Which then begs the next question, what are these Roku originals? We're curious. They're former Quibi shows. That's right. Roku bought up Quibi's library after they fell apart for less than $100 million. Ironically, naming at Roku originals. By the way, I just realized about six of those 10 X's of the stocks in 2019 happened after I sold my Roku stock.

Yeah, but it paid for the whole bar at your wedding. Or no, the ice cream truck at your wedding. It paid for the open bar. You're right the first time. Let's go with the Ben and Jerry story. It's better. So, Jack, what's the takeaway for our buddies over at Roku? Advertisers are a few years behind the innovation curve.

From 2010 to 2017, traditional cable TV viewership, it was plummeting because you were cutting the court. You were streaming. And yet, spending by marketers on TV commercials grew during the period as it was getting smaller. It makes absolutely no sense. But then here comes Roku. And Roku acquired Nielsen's rating service. And Roku is now streaming over half a billion hours of material a day.

Finally, with that evidence, the advertisers have arrived. They're fashionably late, but they've arrived. We think the next place that advertisers will arrive fashionably late, Podcasts. It's an under-monetized industry, Snackers. For our second story, Papa Johns wasn't supposed to be doing as well right now as it just said it was doing. But we noticed they snagged an idea from their beverage buddies. Yeah, they did.

Papa Johns, it's your go-to order when Joe's ran out of dough down the street. I've actually never had Papa Johns, but we are in the post-Papa era because Papa John Schnatter no longer involved. He's basically been replaced by Shaq. Shack's running like half of Papa John's these days. No joke. And investors expected from Papa John's a DPF situation. Right. DPF, the old demand pulled forward that we're starting to see among a bunch of companies.

In 2020, everybody ordered pizza delivery. So they expected this year, they'd be like no more growth available. Honestly, you don't have an appetite for it, frankly. But instead, Papa just announced 25% sales growth last quarter to 500 million. That's right. This company's growing twice as fast as dominoes right now. Snackers, here's the thing. That story, it could have ended there.

Probably did end there for a lot of people. But Jack, I noticed this thing took a turn. in the first line of the earnings call. I'd like to start off by praising one specific phenomenal dish. That's not Jack Kramer. That is the CEO of Papa Johns who was very excited about epic stuffed crust pizza, real thing. Sounds like the start of a best man speech who drank way too much. This is a pizza that comes with what they call premium dough and so much dough it's probably

going to cause a carb shortage. All right. Papa Johns mentioned pizza 11 times in their earnings report. They did. But they also mentioned epic stuff. stuffed crust 10 times. Just one short. They're worshipping this new pizza like it's the second coming of cheese. Now, stuffed crust pizza is self-explanatory.

But then they mentioned another culinary innovation called Papa Diaz. This is like another deep dish deity they got going on over at Papa Johns. This is Papa's take on cassidia, we think. And they call it Papadias. Jack, one second. I'm literally, I'm Google imaging searching this right now. I've heartburned while I'm looking at this product. It's basically taking a slice of pizza and folding it. But Snackers, this isn't like some simple gimmick. This is actually all part of Papa John's premiumization strategy, which is the opposite of a discounting strategy.

We've all heard commercials for years where pizza places, they try to attract customers by saying $5 off any two medium pan pizza. Instead, Papa John's is doing a 180. They're trying to attract you with value and novelty with products that you're going to have to pay more for. And Nick and I saw one major sign that it's working. Over 50% of Epic Stuffcrest Eaters last quarter were first time Papa John's diners. first time Papa Johns'ers, Mike Drop speaks for itself. Let's just go to the takeaway. Jack, what's the takeaway for our buddies over at Papa Johns? Trends are fun. Trends spillovers are even more fun. A year ago, just as the pandemic began, Jack and I noticed that there was like a premiumization trend going on in the beverage industry. We saw it most from Constellation brands, which owns wines, vodkas, liquors, beers. It was all of their premium brands that were dominating in

2020 during the pandemic. Well, here's the funny thing we just us with Papa Johns. That same treat yourself trend that we saw in beverages in 2020, it's now playing out in food in 2021. Papa Johns wasn't talking about premium pizza year ago. They were talking about good value, low priced pizza. But premiumization, that has powered their stock up 43% higher than it was pre-pandemic. Stir crazy Americans like you and me. We want to treat yourself to the most expensive pizza on the menu we deserve it. Epic Stuff Crest Pizza. It's a spillover of the same trend as alcohol. For our third and final story, humans, we've only got two wrists.

Big issue. Orra just got a $100 million check to stick sleep tracking and thermometers on your finger instead of your wrist. Big difference here. We're talking ORA Snackers. Company we noticed was founded in Finland back in 2013. And here's what they're leading with. A smart ring. It's a simple metal band, not that different from my wedding band, comes in four different colors.

Pretty straightforward. Orra, it has some really tiny instrument. making this happen. Because they managed to pack a battery, a bunch of sensors, and a bunch of technology into this ring. And what they're doing with this ring is they're jumping into the crowded activity tracking market pool to try to compete with a whole bunch of players. Fitbits there. Apple Watch is there. Garments there. A whole bunch. And they just raised $100 million in private funding to take on those companies. And this company is probably a unicorn. It's probably worth over a billion dollars. So Snackers, here's what Jack and I find fascinating. Wearable Tech is surging

right now, but wearable tech has a real estate problem. There is only so much space on your body where you can slap a tiny computer, which is wearable technology. Your body is the island of Manhattan. So that puts even more pressure on ORA to stand out. And we notice they're standing out in three very particular ways. First is marketing. Other wearable gadgets, they highlight these step tracking and the fitness aspects of the device. That's what they're pointing out. Your iPhone, it already does that. Boom. Done. Orra leads in their marketing by talking about about sleep tracking because a good night of sleep can change your life for the better. This podcast runs on 16 hours, eight for Jack, eight for me. The second differentiator is the ease

of use. Yes, it is. Smart watch wristbands. You got to take them off to charge and then you got to wait a whole long time to charge these things. And you got to take them off to get in the shower, yada, yada yada. ORA has a seven-day battery and it's waterproof. So you could go like a week and not even ever take this thing off. But the third key is the most important possibly and that is subtlety. Orra guarantees that you will forget that you're even wearing it. Every other wearable, it is a watch, a bracelet, a glasses. Someone's going to see it. Someone's going to comment on it. And it has to be a statement piece. Nick, they didn't actually guarantee it. I just made that up. I like what you did. The lawyers are going to love this. But they might as well. The only time you'll

realize you're wearing an aura is when someone compliments you or when your phone buzzes because you had an elevated pulse yesterday from 430 to 5 o'clock. Then maybe you get curious. So you check your schedule. And notice you were talking to Diane from 430 to 5 o'clock when your aura buzzed you. Nick, we've talked about this. You just have to let Diane go. Remember, her problems are not your responsibility. So, Jack, what's the takeaway for our buddies over at ORA? Formula for scaling. Luck meets preparation. Snackers, this company, ORA, they've been operating for seven years. No mention on Snacks Daily podcast during those seven years. But then 2020 happened because the pandemic was ORA's lucky.

break. Yeah, or as built in thermometer can get this, instantly alert you if your temperature is riding and that is critical right now. That got the attention of the NBA, WNBA, Ultimate Fighting Championship, and NASCAR. They all ordered a bunch of ORAS and told their athletes, you have to wear these because we want to catch a COVID outbreak early and stop it in its tracks. That was a huge validator. It helped ORA snagging investment from, get this, the Los Angeles Dodgers. 2020 wasn't just, you know, that disease. It was also a year of mental health burnout. And the importance of sleep tracking and managing stress, that was good for ORA. All right. You have this unique moment. The world's having a physical health moment and a mental

health moment simultaneously. Orra was ready. And they've now sold over 500,000 rings and more. Orra just got a $100 million check because luck met preparation. Jack, can you whip up the takeaways for us to start the week? Roku is the little tech dangle that could. Big ad money. It's always behind the innovation curve, but we think podcasting is going to get the ad money next. Or our second story, premium That's when increasing prices actually leads to boosting sales. And it's thanks to Papa John's finding a spillover trend from their buddies in alcohol. Ora's smart ring has three key differentiators to the smart watches out there.

But luck met preparation in 2020. Now, time for our snack fact of the day. This one sent in by Khan Donbexie from lovely Istanbul. Khan, take it away. Have you ever wondered why the country of Turkey and the bird turkey share the same name? It's most likely because back in the 15 and 16 centuries, Ottoman merchants first introduced the bird to the European markets, where it got the name, Turkey rooster. Over time, rooster dropped, and Turkey was what's all left. The bird wasn't actually native to the Ottomans either.

They probably got from the Indian traders. And that's why the name for the bird in the Turkish language is Hindi. That is way more enlightening than sixth grade Jack Kramer's favorite joke. Third person. I'm hungry for turkey and chili. Three countries. That's a sixth grade job. Jack, some jokes just get better with age.

The best ones, you need to say it twice. Snackers, you'll look fantastic to start the week. Jack, you're going to wear that slamming salmon sweater tomorrow? Where are we going to do? 100%. Same sweaters. For you. I need more black in my wardrobe.

We'll see tomorrow. Can't wait. And before we go, huge congratulations to Brian and Theresa Diamond, who just got married in Tahoe and get this. Okay, first of all, Alex and I had her honeymoon at Lake Tahoe. A wonderful place. Second, they both were pod listeners of Snacks Daily before they met each other. And then they asked each other, H-Y-H-Y-Y-S-D, and guess what?

Yes. Two hearts have become one. Also, unfortunately, for us, two downloads are just one download for us. Could you both like just one of you play it silently on your phone, too? Or played it the way. Happy birthday to Savita Shankar over in India. And Avi Hirsch and Caracas, Venezuela. And Mike Bromondon in Bartlesville, Oklahoma.

David Parr in Houston, Texas, and Alex Larson and Reno, and Bob Tepner in Palmyra, New Jersey, and Mike Bianchi over in Piquin. And Ryan Kaye in Excelsior, Minnesota. And happy birthday to the ready men. Big shout out to Rachel Patch, who's getting her first fourth grade class in the beautiful Green Mountain state of Vermont. And Max and Nikki just got engaged in Chicago. Congrats to Nico Perez for graduating in Harbor City.

And Kim and San Figueroido just had their anniversary in Queens. And quite an accomplishment by Louis Corona, who just bought a new Mac. in California. Because mattress, mattress, mattress. We'll see you tomorrow. This is Jack. I own stock of Amazon and Netflix. 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, 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.