The Best One Yet - 🧊 “The secret cold brew lab” — Starbucks’ nitro party. Athleta’s Simone Biles moment. Chips’ ice cream headache

Episode Date: July 29, 2021

Starbucks just snagged a record quarter because your cold brews are Starbucks’ new profit puppy. Simone Biles just put her mental health before a gold medal, and her sponsor Athleta made the same move. And you’ve heard about the Great Chip Shortage from toys to trucks, but the chip industry may get an ice cream headache.$SBUX $GPS $AMD $NVDA $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, July 29. Hold up. Hold up. Hold up. Nick.

Yep. We have to address the Lassie in the room. Yeah. So she's a collie. She's not a golden. She is not a golden. Are you sure she's a collie? Yeah.

Because I don't want you to collie gate this Lassie gate. I don't want to. I know the cockapoo owners out there aren't happy either, Chuck. Snackers, Lassie's definitely a collie. This is definitely the best one now. Jack, first story for the TBOI. What do we got? Starbucks just whipped.

up a Grande record court. Yeah, it all comes down honestly to one thing. Cold brew. You know who you are? For our second story, Simone Biles is putting her mental health first. Her sponsor, Athleta, is doing the same thing perfectly timed. A new women's wellness initiative. Third and final story from toys to cars. You've heard about the great chip shortage. Funny thing, chip maker, AMD just reported earnings. They could have an ice cream headache sandwich which situation on their hands. Too much. Yeah.

Of a good thing. Unless there's hot fudge, because that's actually really good. Snackers, before we hit our three goldenatures, I mean, our three stars. I can't believe you went there,

Jack. This is a wonderful mix today. I love this. Sometimes you got to shoot your shot. You got to shoot your shot. You got to ask her out. You got to ask him out. You quit your job.

You launch Sam Slam and Sam and Sweater startup. It's what you do. Or another option, you got to finally out Disney, Disney publicly so well that Disney hires you. That is shooting your shot, Jack. That is basically what some CGI artist did on YouTube. This person goes by Shamook.

Well, Shamook, the person thought that the Star Wars, like, computer-generated characters, they thought they looked lame. So Shamook started doing it themselves, Solo. Han Solo. You need a young Anakin Skywalker for the latest Mandalorian movie. Yeah. But Mark Hamill, is it? young anymore? Well, Disney made a young Mark Hamill computer-generated image, but Shamook decided to do it

better themselves. Shamook made a deep fake of young Skywalker so realistic. So realistic. You'll want to lick the YouTube screen. Jack, Master Luke was so clear. You could see the mid-chlorian. Snackers, Disney, which owns Lucasfilm since 2012, could have whipped out a cease and desist and sent it to Shamook. Yeah, they could have sent the lawyers on this guy. And instead, they could have. They sent an offer letter. That's right. This rogue, deep fake YouTuber isn't a rebel anymore. Shmook is now the senior facial capture artist at Lucasfilm. So Jack, what's the takeaway for our buddies over at Disney and this person, Shamook? Trust the force.

Although the force may be a YouTube algorithm. Let's hit our three stories. Let's do it. You're tuned in the snacks daily. We spoke to the lawyers. The snacks about to hear rain 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 advice. Not an offer or sale of a security.

Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Fenra slash SIPC. For our first story, Starbucks just had its best quarter ever. Coffee is officially cold as ice. First of all, Jack, can I just get something off my chest? I just have to say something here.

Happy 50th birthday Starbucks. you don't look a day over eventing. This is the good, clean family fun. Yeah, it is. You only get here. Honestly, Starbucks, it must be the oat milk. Whatever you're doing, keep doing it. Starbucks scored $7.5 billion in revenue last quarter,

which is up 78% from last year. Jack, they threw in a $1 billion profit, not too shabby. Because of what they call the great human reconnection. Yeah, that was the last quarter, Snackers. Like, maybe you weren't going clubbing quite yet. It's kind of a super spreader event. Clubs tend to not have great ventilation, but you may have met your buddies again for a cappuccina. You did. That's easy. It's hands off. You're not rubbing up against the other person.

And when you visited, you probably tried out a cold brew. Snackers, wild stats that Jack and I noticed about cold brew and Starbucks. Three out of four, Starbucks beverages sold last quarter were cold brew drinks. Now, this obviously won't continue in the wintertime. Probably not. But they mentioned the word cold 24 times in their earnings report. That's a lot. Jack, do you know how many times they mentioned the word hot? How many? Like only five times. It was pathetic.

Did you count frigid, chili, and icy? I didn't, but I hope they threw in those synonyms. Snackers, the cold roster is deep. Nitro brew, refreshers, iced shaken espressoes, even a cold tap water. They have a thing called cold foam. Honestly, never had it, Jack, but this kind of makes sense. I think that's just blowing bubbles in a glass of milk. If that's what the barista does, I'm willing to take it. This is great for Starbucks because cold beverages are a premium price. It's harder. to make cold coffee than hot coffee.

What we're trying to say here is cold brews are Starbucks profit puppy. Patient Zero for Starbucks's cold bruise was born at the Starbucks laboratory known as the Trier Center. That's right, Snacker. So Jack and I noticed that they were talking about cold brew so much. We dove in snack style. Notice that Starbucks has a secretive lab to test out new coffees. It's so secret they had a press release that Nick and I read about. This thing is 20,000 square feet.

3D printers, Jack, it is a Willy Wonka factory meets a Graze anatomy. And in this laboratory, they experiment. One of their experiments was a proprietary Starbucks-made cold drink nitro system. They call it tapitha. Is that correct? Do you think that's the right pronunciation? Yeah, because there's a tap to pour out nitro beers. By the way, you know they invented something there called Cloud Macchiata? Is that the cold foam? I think it's related to the cold foam, but I kind of want to sleep on it. Let's focus on tapith, which is now in 2,000 stores, pumping out nitro brewers for all these customers. And that is how Starbucks is able to meet all this demand for all of your cold brew demand.

Tap, tap, tap. So, Jack, what's the takeaway for our buddies over at Starbucks? Starbucks's one goal is to elevate your one ticket. Snacker, Starbucks loves that you habitually go to Starbucks, but you're probably only going for one visit a day, and that's important. So to maximize profits, Starbucks wants to optimize your one order, your one receipt, your one ticket per day. Well, Jack, a year ago, Starbucks tried to do that by pushing you breakfast.

They succeeded. Their avocado egg sandwiches are a nice compliment to the latte. And then last quarter, they tried to up your ticket by pushing you to Alt milks. I just checked out my Starbucks app. There are eight different creamers at my Burlington, Vermont Starbucks. Well, this quarter, they're trying to up your ticket by going cold. There's so many iced beverages you got to try one. Snackers, since cold is a premium, that elevates the one Starbucks ticket.

day. For our second story, the Gap just sees an Olympic moment to launch a women's wellness program. Under Armour is muscle. Lulu Lemon is stretchy. Athleta wants to be mindful. Tuesday morning, Jack, watching the Olympics. By the way, three-on-three basketball is fantastic. It's a half-court game. I was surprised to see that. It's absolutely wild. But all the attention was on the women's U.S. gymnastics team led by Simone Biles, who won four gold medals in the 2016 Rio Olympics. We're talking the queen of gymnastics over here. She jumped off the vault, but then had this kind of uncharacteristic, awkward landing situation. Yeah, she was definitely off balance.

She wasn't herself. And moments later, NBC commentator said, Simone Biles is out. She's not coming back. No. And afterwards, we heard from Simone Biles, and she cited mental health for the reason. Yeah, she posted on Instagram just days before that for like years, it's felt like the weight of the world has been on her shoulders. Jack, I remember watching the CBS interview with her six months ago and the weight of the world was on her shoulders.

Yes. And she wasn't able to perform because of all that stress, didn't want to fail her teammates. So she stepped down. And they ended up getting silver heroically pretty amazing. So everyone's thinking about mental health because the star of the Olympics just stepped down because of it. And this is what happened the very next day. The next day, Gap, launched a new thing with its athletic brand called Athleta Well. This is how Athleta Well describes what Athleta Well is. It's an immersive digital program for women to connect on a range of topics rooted in female well-being. Okay, so we jumped in Snacksdale. We're going through Athleta Well, basically you're getting curated interest groups centered around well-being topics. On topics like boosting your immunity, intuitive eating, and physical therapy.

So you're like engaging with the experts, you're talking to other people, everything from menopause to six ways to be mindful. But to get access to this great content, you must be a member. of Athleta's loyalty program. That's the key. So you got to be loyal to Athleta, but then you're getting access to the community. Perfect timing, though, because not only did Simone Biles have all the attention right now,

she is also an Athleta athlete herself. In fact, she just left Nike, which is like the just do it situation, which is kind of the opposite from taking a break. Right. She left Nike to join Athleta in April. So like, the timing is insane. So, Jack, what's the takeaway for our buddies over at Gap's Athleta?

The athleisure pendulum has swung from product to community. Snackers, Athleta is trying to differentiate an active wear. Because get this, active wear is now like 33% of all fashion sales. Stretchy clothing is a huge part of the American clothing market. Jack, if you're not living the Lycra lifestyle, you're not living. So it was 27% in 2019, 33% in 2020, probably more this year. Athleteasure has gone through an evolution. It all started years ago with Under Armour.

Protect. This house in sweatwicking cold gear leggings. Then Lulu Lemon started protecting this yoga studio. Now Athleta is trying to protect this soul. Just please do it in this Oxygen 2.0 tank top, if you will. The website for Athleta's program is literally community. com. Snackers, to stand out in women's a leisure, Athleta turn to community.

For our third and final story, we just got the first big earnings report from a chip company. But the chip shortage is becoming an ice cream headache. Okay, Jack, can we travel back earlier in the week as you're enjoying that polar seltzer over there? I saw that swig. Oh, I thought you were going to say earlier in the week when we were talking about National Ice Cream Month. Yeah, perfect timing.

You know, it never ends technically. On Monday, Tesla announced a billion dollars a profit. One billion dollars. It was their best profit ever by far. It crushed Wall Street's expectations. But then the stock fell 3%. Okay, very next day, Apple announces $21 billion, which is double the profits from last year. But then Apple stock fell 2%.

The common reason, both Elon Musk and Tim Cook warned investors that a chip shortage was going to hurt future profits. Yeah, because the number of chips they're receiving jack, that's going to decide how many Tesels and how many iPhones they're pumping out for the rest of us. Put this on a bumper sticker. Computer chips are two products these days. what regular chips are to parties. Jack, they're critical. You don't got chips. You don't got a party. You don't got a product.

Now, insane demand for chips should be great for chip companies, right? Jack, it should be fantastic for chip companies. Someone listening right now driving on their way to like AMD or Navidia. They're like, oh yeah, everybody wants me. They're having a lot of fun. It's because everything from cars to PlayStation 5 to every phone needs a whole bunch of chips. Or Jack, like Wall Street loves calling him seven conductors. You got a buddy who's a buddy who's a guy.

an equity analyst. He calls him semi-conductors. It's not Timmy. Well, Chipmaker AMD, funny timing, great name, just announced earnings yesterday. Yes, their profits quadrupled as everyone's looking for chips. That's right. Chipmaker AMD saw its profit margin double last quarter because it jacked up prices on all those chips. If you're AMD and you got 10 chips, but there's 20 customers out there, including Tesla and Apple, you can do some surge pricing. Yeah, you can Jack. No. adjusted on that one. Unfortunately, for Intel, though, not all chips are created equal.

That's true. That's true. Because Intel, they're not benefiting as much. Their chips are not in as high demand right now. But we're thinking this chip party can't last forever. There's one concern we've got to highlight. Great transition, Jack. So, Jack, what's the takeaway for our buddies in the whole chip industry? Insane demand is like an

ice cream headache. Can be too much of a good thing. Stackers, this chip shortage? It's caused wild, unprecedented demand for all these chips. But that has also highlighted the world's dependence on just a few chipmakers. Totally. And that last part? That's a problem for the chip makers, Jack. Yes, we're seeing big tech giants ending their dependence on chipmakers by doing it themselves. Yeah, Apple now makes some of its own chips so it doesn't have to buy only from Intel.

Tesla now makes some of their own chips so they don't have to rely on Nvidia. So high demand, we're thinking, is like a sweet, lovely, delicious ice cream, But excess demand and not enough supply, it may give chipmakers a headache. Jack, can you whip up the takeaways for us for the new Friday? Three of every four Starbucks beverages are cold. Yeah, Starbucks elevated your one ticket with premium cold bruise. Athleta launched a women's wellness initiative, just as women's wellness is having a major cultural moment.

Jack, can we say that Under Armour is swall, but Athleta is whole? Holistic. There we go. Third and final story, AMD is loving this chip shortage we got on our hands. Apple and Tesla aren't, so they may start DIYing their own chips. It's going to create an ice cream headache situation. Now, time for our snack fact. This one tweeted in by Jordan Marcus from lovely Oakland, California.

Facebook has a secret way to find Mark Zuckerberg's Facebook page. Okay, this is weird. This is wild. We checked it out. If you type in Facebook.com, but then add slash four, you get to Mark Zuckerberg's Facebook page. Right. We thought it was Facebook.com slash patient zero.

But it's not. That goes right to Mark Zuckerberg's official profile slash four. Funny weird shortcut. Great snack fact. Thank you, Jordan. Snackers, you look fantastic today. And Jack and I love being with you every single day. Snacks for life.

Nick and I'll see you tomorrow. If you know, you know. And before we go, happy birthday to Snacker Hunter Ladner in lovely Chicago. And happy birthday to Prithka in Lake Hopiton. And Colin Anderson in Fayette, Phil, Arkansas. And Carlos Ventura and King. Campbell, California. And Chris McCluster in West Hartford, Connecticut.

Kevin Brown in Rocky Hill, Connecticut. And happy birthday, Alvin Joseph in Walnut, California. And Emma Jane Gonzalez in Miami, Florida. And Jane McKissick in D.C. in D.C. James Massey in Worcester Mass. What a Massey. And Lainey Wendon in Menlo Park.

Happy birthday, Kelly Mai in Brooklyn, New York. And Mel Scott in Melbourne Beach, Florida. And happy birthday, Kyle Ash Graham Bell in Boulder, Colorado. Oh, and by the way, Jack, Bob Fuller and Sarah Amarrow just got married in San Francisco. Deval Shas just got promoted in the big app. Stanette and Tanya Bird, we got an anniversary in lovely Suffolk, Virginia. Lucas Dean, happy six years of snacking. That's got to be a record in Ann Arbor, Michigan.

That's a snack anniversary. Go Blue. And to anyone else celebrating something today, make it a T-Block. Celebrate the wins. This is Jack, Nick on Stock of Apple and Lulu Lemon. 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.

Tap, tap, tap.