The Best One Yet - 👨‍🎤 “The BTS Boy Band Strategy” — McD’s adult happy meal. Exxon’s cinderella. MGM’s Primification.

Episode Date: May 27, 2021

McDonald’s just launched its BTS boy band collaboration with a digital strategy that’s never been tried in food before: Golden Repackaging. Exxon Mobil’s board just got served a Cinderella story from a little engine. And MGM Studios has been officially acquired by Amazon — last week we looked at Amazon Prime Theaters, this week we’re looking at why they did it (Answer: Passion of the Prime).$MCD $XOM $MGM $AMZN $MMMGot 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, May 27. Nick, it's May 27. He's May 27. Isn't it? Nick, it's Wilder's seven-week birthday. Where's the present? You know, honestly, I can't believe you haven't done this, Jack. What? You haven't named me the podfather. That goes without saying. I thought I was the podfather of your newborn child. Snuggers, this is the best one. Jack, first story, what do we get? McDonald's launched a partnership with Korea's boy band sensation known as BTS. Unprecedented strategy here, Jack and I are noticing. We call it the adult happy meal. For our second story, ExxonMobil, is actually a descendant of John D. Rockefeller's Standard Oil Company.

Yesterday, they suffered maybe their most embarrassing defeat ever, and they'll be a lot less like the Standard Oil Company. Third and final story, Amazon is officially acquiring MGM Studios and their entire 4,000 DVD movie collection. We're talking Bezos' second Vegas deal ever. Jack, you know, we're thinking on this one, the passion of the prime. But Snackers, before we hit that wonderful mix of stories today, Jack, here's the question. If you had to get like one tattoo, Jack, what tattoo are you going to get on this? And I think I know the answer, but I'm not going to say the answer. I've been thinking about this since our first pod.

And I think I'm going to get one written in cursive with the other like amber-grammed in there. Is that possible? Are we talking T-boy on the ankle and then the best one yet across the thigh? Yeah, let's go with that. That sounds better. I think you could get, if you know, you know, but then when someone asks you about that tattoo, you just say, well, if you know, you know. Snackers, get this. Tattoos in America are surging right now. Per the Seattle Times, getting a tattoo is a great way to sort of reclaim your space, your time, and your body after a year of the pandemic. Tattoo studios nationwide are booked solid.

Booked. After not seeing people for 15 months, you'll want to surprise them with a little skin art. You don't want to. Timmy! Timmy! You look the same as 15 months ago. Not a good luck. But get this, Snackers. Jack and I also noticed that while tattoo sales are popping, tat removals are also popping.

According to our buddies at the Pittsburgh Daily Gazette, great paper. People had more time to look in the mirror during the pandemic, and they saw tattoos they didn't want to have post-COVID. So tattoo removal studios, they're booked nationwide too. You spent so much time in front of the mirror. You're sick of that six-inch Philly fanatic you put on your calf in high school. Jack, no fresher way to start 20. 2021, then you get in your ex's initials erased from your thigh.

The takeaway here is Snackers. Tattoos are surging. Yes. Tattoes are also purging. Mark up your bicep. Then control Z or tricep. 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. It's snacks about the hair 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. Nope. It's not a research report or investment.

Not an offer or sale about security. Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Fenra slash SIPC. For our first story, McDonald's just launched a rare collaboration with an epic boy band with a specific strategy. The future of happy meals? Yeah.

Is for adults. Okay. Jack, BTS, the Bangtan boys? Do we have to go any further on this? Oh, they're like Eminem. They have multiple names, Slim Shady, Marshall Mathers. We're talking the seven member. South Korean boy band. Jack, are you more of a Juncukuk or are you more of a Jay Hope?

I've just been lost in their eyes, man. I mean, who wouldn't be? This is a boy band Snackers that has seven Guinness World Records just in the last year. The accurate analogy is that they're the Beatles, but right now and in South Korea. They generate three and a half billion dollars for the South Korean economy, no joke. All right. So apparently McDonald's thought all that was worthy of one of their very rare celebrity collaborations. They don't do this often. The only one we remember is the McJordan Burger from 1992, and we were literally four years old and don't remember it. I was four. Michael Jordan was on the commercials, but also last year they did something with Travis Scott, the rapper. Yes, they did. Which was so popular. So popular. It caused a shortage

in key ingredients like lettuce across the whole economy. Derek, we're going to need more Sprite, like a lot more Sprite. Now, according to the McDonald's CEO, nothing had a greater impact on our digital business than these famous order programs. Snackers, let them. Let them. that sink in. These famous orders are driving their digital business at McDonald's. Right. And McDonald's refers to these celebrity endorsed food items as famous orders, because you can order the same thing as BTS. But here's what Jack and I are thinking, now that we've jumped in snack style, to really analyze this strategy, we think they should call them adult happy meals. The BTS famous order, Nick, it's adult sized. It comes with a 10-piece chicken McNugget,

a lot of calories. French fries, a Coca-Cola and some Korean dipping sauce. I mean, huge miss here, Jack, not calling these the dynamite nugget. I don't know what the marketing team's thinking. Dynamite's their hit song. Yeah. For the advertising for the specific BTS, as we call it, adult happy meal, they kick things up a notch further. Just yesterday, BTS dropped a new hit single called Smooth Like Butter.

And the whole world heard it for the first time. They did. Just as McDonald's launched a new ad campaign with that hit song, but referring to it as Smooth Like Burger. So on TV, people are seeing a new song in a McDonald's ad. And they're like, that's a great song. What is that? It's in the BTS meal. But Snackers, here's what Jack and I find so fascinating about this partnership.

They're also doing something that McDonald's says has never been seen digital surprises. BTS grabbed some camera to film exclusive footage just for this McDonald's partnership. Okay. So we jumped in Snacksdale, got the McDonald's app. And guess what? When you open the McDonald's food ordering app, you're actually going to see a section that says go backstage. There, you will see behind the scenes footage of this incredibly popular band. that you can only find in the McDonald's app. So let this sink in. All restaurant apps are just for food delivery,

except for McDonald's, which now has augmented reality video camera footage of a boy band from South Korea. It's like if Beyonce dropped an album at midnight tonight, but you could only listen to the album in the Taco Ball. That is exactly the situation, Jack. So what's the takeaway for our buddies over at McDonald's? We call this the Golden Repackaging stretch.

Snackers, Golden Repackaging. Here is the revelation. that McDonald's hat. You don't need a new product to gain new customers and generate hype. The best thing about this BTS collaboration. It's food that McDonald's is already cooking. It's just reorganized and repackaged. I mean, here's how the McDonald's executives put it. They're maximizing their digital investments without adding any restaurant complexity at all. Even the new Korean dipping sauces is just a combination of existing McDonald's sauces. Snackers, the golden repackaging strategy. It's a blue.

blueprint for a whole new mindset. The greatest value creation can come from value that's already been created. Boom! Socrates. For our second story, ExxonMobiles Management just got embarrassingly rebuffed in a way we haven't seen in like, Jack, I want to say almost a century. The shareholders have spoken. They just voted that the biggest oil company in America has to get green. All right, Snackers, we're going to sprinkle on a little context here.

A month ago. We covered news that an activist investor had picked a fight with the way Baker ExxonMobil. The problem the little company noticed. ExxonMobil seems to have no climate strategy. They're doubling down on business as usual oil and gas. A little side note here, Exxon is kind of considered a villain among climate change activists for allegedly suppressing science that showed climate change was a problem. And then funding counter science to sow doubt in climate change.

So this little hedge fund whipped out a whiteboard and apparently like a whole bunch of check. and bought enough stock in ExxonMobil to try to mess with and change ExxonMobil. And then they demanded publicly, they started a campaign that ExxonMobil should embrace clean energy and stop resisting. Then they got out like a second whiteboard here and came up with a game plan. And Jack, can you share with us the game plan here? This little hedge fund nominated formally four board members who would force the CEO of ExxonMobil to set a goal for carbon neutrality just like its British oil rival did, British Petroleum. Okay, Snackers, here is where things got really interesting yesterday.

Basically, this became a Cinderella story starring the little engine that could literally. The hedge fund, the activist we're talking about. Its name is engine number one. No joke. And yesterday, they won a shocking victory. That's right. Snackers, get this. Engine number one, the hedge fund with the incredible name, only owned 0.02% of total Exxon mobile stock.

That's it. That's all they owned. So for their proposal to pass, they needed 49.98% of all the other Exxon shareholders to agree with them. So ExxonMobil sees this happening and their management team recommends publicly that all the shareholders reject these four green board nominees who that little engine that could is hoping this is going to make happen. And given that Exxon Mobile shareholders are invested in oil. Yeah. They're not like tree huggers. We assumed they would fall into formation with the CEO's orders.

And yesterday was the annual shareholder meeting, one share, one vote. Straightforward, here we go. What's going to happen? In a shocking victory and demand for change, two of Engine Number One's board nominees won. Yes. And we'll join the board of directors at ExxonMobil. I mean, Jack, this is the kind of comeback. You'll only seen a Mighty Ducks movie.

Insane. Now, the CEO of ExxonMobil, he'll have to start implementing some of the environmental changes suggested by those board members or else he could get fired. This is like Exxon CEO started dancing at a party, thinking his oil buddies would come join in, have fun with him on the dance floor. He took a risk. He stuck his neck out there. And then he starts dancing. All his oil buddies stayed at the bar. Didn't come. Left him moonwalking on the dance floor alone. Oh, and by the way, in another blow to old school oil,

Shell was just ordered by a Dutch court to cut its carbon emissions also yesterday. So, Jack, what's the takeaway for our buddies over at Exxon and Big Oil? This story is really about BlackRock. Yeah. The bedrock of big money. Snackers, Black Rock. It controls $9 trillion with a T dollars in investor money through their mutual funds and through their ETFs. And that is power because corporations are democratic. Yes, they are. And since BlackRock votes on behalf of all the money they manage, BlackRock's voting power at corporations is like California, New York, and Texas combined. Well, their CEO, Larry Fink, back in 2018, wrote a letter to other CEOs urging them to serve a social purpose. Interesting timing. In 2020, he wrote that climate risk is investment risk and promised to start exiting high carbon investments. And then this year, Larry Fink said

that all companies BlackRock funds or invests in should be carbon neutral by 2050, period. Not for environmental reasons. He argued it was a profit imperative to embrace decarbonization. Well, on Wednesday, the bedrock of big money, BlackRock cast its votes. 6.7% of all the votes for ExxonMobil for change at ExxonMobil. BlackRock has been talking for three years about making companies go green. And the bedrock of big money just walk the walk with this Exxon vote. For our third and final story, you're going to call me the podfather. Are you going to call me the podfather?

FGM was just officially acquired by Amazon. Now it's official, not just a leak. A $9 billion acquisition, the second biggest in Jeff Bezos's Amazon history. All right. So, Jack, we're going to backtrack here a bit. Last week, we told you that PFWTMs were like whispering about an Amazon acquisition deal. Amazon and MGM studios, M-E-R-G-I-I-E-E-I-E-A. I and Gene. Sitting in a tree over in Seattle. Now, MGM is 97 years, y'all. You look great.

A Hollywood icon with 4,000 movies and TV shows. I mean, Jack, and I interest in James Bond, handmaid's tail, legally blonde. Love it. Rocky. My favorite. Have you heard about the next Rocky film? No, but when he punches out Drago at the end of the second round, I have to get up and sit back down. Rocky 9, return of Drago's nephew. So Nick and I thought to ourselves, if Amazon is investing in movies through MGM, maybe the rumors about their AMC acquisition could be true. The movie theater chain's only worth $8 billion. May as well throw that in the shopping cart, Jeff. We fantasized.

We thought about AMC Prime Movie Theater, which could give out free popcorn to Amazon Prime members. Or let you reserve seats if you're a prime member. And throw up Thursday night football, which they just bought rights to, so you can scan your palm for a 68 ounce soda for free. Use an Amazon technology. But Snackers, we're going to zoom out here now that the deal is official. Here's what Jack and I are thinking.

Amazon is kind of like a kid in high school who's so rich, he'll give you his allowance to take the exams for him. Here's the thing, Snackers. Yeah. Amazon is in the video business with Amazon Prime Video. And their biggest asset is their money. Yeah. Amazon has $71 billion in cash. That's right. 71 billion in cash enough to buy four lifts. Amazon could open up a brokerage account.

Yes. And buy all the stock of Lyft four times. So they got all the money, but here's the funny thing. Amazon doesn't really have the content talent with all that money. Nick, Nick, Nick. They did produce Manchester by the sea, which got a couple Oscars, but that's a dark movie. It is. You watch that once and you're scared to watch it a second time.

Marvelous Mrs. Maisel is also Amazon Prime Video. Great show. Fantastic. But it's no shit's creepy. No, it's not. So Amazon Prime Video is in the streaming wars and they are desperate for content and loaded with cash. That's why they reportedly bid for the entire Sony movie video collection, but lost to Netflix and Disney.

And then apparently Apple was reportedly trying to buy MGM2. Amazon jumped in and offered 40% more to make the deal happen. Their pockets are so deep, they just bought the rights to Thursday night football, which cost a billion dollars a year. But do you think, Jack, because that's the same amount that Amazon spent to buy Zappos a few years ago. They also just produced Borat, the sequel, a low production movie, which they paid $80 million for. And they said, you know what, we need even more stuff.

we'll drop $125 million to have the rights to coming to America too. Can't wait to watch that movie, by the way. Which leads to the big question we know you're asking, Snackers, why is Amazon splurging so much money on content right now? Why are they so desperate for Amazon Prime Video to succeed? We don't think it's about beating Netflix. We think it's about Amazon itself. So, Jack, what's the takeaway for our buddies?

Over at Amazon. With any Amazon move, it all comes down to the passion of the prime. The passion of the Prime. Snackers, Amazon Prime, $119 a year, it's their profit puppy, shipping stuff to you in two days like a dream. Definitely a profit puppy, but Amazon Prime is 15 years old and it needs something fresh to keep things interesting. Yeah, because Prime, honestly, Jack, I mean, this is a utility relationship. You're basically playing for efficient delivery and that's not that fun. So media and content, that is fresh and new and that can uniquely spice up the Amazon Prime

relationship and keep things fresh. Boom, Amazon can spend the cash to make sky. Skyfall or Casino Royale free for primers and then do spin-off schmovies on both those flicks. That way, you stay in love with Amazon Prime. Even after fast and free shipping has become the norm. Media turns Prime from a logistics transaction into an emotion of feeling, a connection. Amazon bought MGM Studios not to beat Disney Plus, but to light the passion of the Prime. Jack, can you whip up the takeaways for us over there?

McDonald's didn't have to change their menu. They just had to collaborate with BTS. Golden repackaging. That's the strategy for the adult happy meal. Exxon mobile management has a new board. Black Rock and a tiny little engine voted to change Exxon. Amazon now has an iconic Hollywood movie studio. And it's $9 billion to keep Amazon Primers love and Prime, the passion of the prime.

Annoyingly, I just convinced my father-in-law to buy the whole James Bond collection, which he's now going to get for free on Amazon Prime. And did he do it on Blu-ray? I feel like you should get a refund for this. stuff. There should be a statute of limitations. Now, time for our snack back to the day. This one tweeted in from a legendary snacker, Srinny Sankar, over in lovely Boston, Massachusetts. Spencer Silver passed away last week. Unfortunately. Now, he was the inventor at 3M of the not too sticky glue that you actually use a whole bunch. The not too sticky glue is the adhesive. That's not too

sticky. No, it's not. And that's why it makes Post-it notes possible. Yeah, we made up the name not too sticky glue, but he created the glue by accident and was actually, actually hoping for it to be more sticky. You pull the sticky note off the whiteboard. You put it on another whiteboard. You put it back on the same whiteboard and it still sticks. Is it magic? No, apparently it's this funky adhesive. And now there are more than 50 billion post-it notes made by 3M every single year. I was going to do something, but it's not a video. So Zach's full disclosure, Jack just pulled out a sticky note. But because this is an audio first podcast, you're just going to have to take my word that it looks fantastic. Multicolors. I don't like the

orange ones. I know what you mean. You look fantastic. Fantastic, today, Snackers. If you haven't yet, drop down, give us five stars. Maybe a review helps us grow. And then mention in your family text chain. I know you got a family text chain. Mention your favorite part of today's episode. Everyone's got a family text chain now. Nick and I'll see you Friday. And before we go, congrats to Zach, great work on the weekend runs over at Lion's Street Steps. Hope you're enjoying the pod with your mid-girlfriend.

Happy birthday to Anna Mirabella in San Francisco, California. And to Jason Jay down the street, also in San Francisco. and Baby Doe in Leon France. And Matt Schaefer in Madison, Wisconsin. And Trey Shigley in Madison Heights. And the Dow Jones Industrial Average turned 125 over in New York City. You don't look a day over 99. And Hillary Keio, happy birthday in Portland, Oregon.

And happy birthday, Ellie in San Diego. Oh, by the way, Jack, Amin and Yasmin, getting married snackers who snack together in Agadir, Morocco. Danielle and Ray, we're thrilled you're getting married in Delanco, New Jersey. And Christy Tom, congratulations on the graduation from 8. HBS feels like a case study kind of day. And Milan, Kuryanov, congrats on graduating from middle school in Sacramento. And to anyone else celebrating anything today, make it a T-boy.

Celebrate the wins. This is Jack. I own stock of Amazon and Netflix. Nick on 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. 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.