The Best One Yet - 🍝 “We spat out our marinara” — Olive Garden’s record high. Pacaso’s (Millennial) 2nd home. Suez Canal’s big number.

Episode Date: March 26, 2021

Olive Garden’s owner is at a record high, but there’s more lasagna layers to the numbers. Pacaso just became the fastest ever US company to become a unicorn by making your 1st home your 2nd home (or a 2nd home your 1st home?). And we’re looking at the most important 120-mile stretch in the global economy.$DRI $ZGot 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 Friday, March 26th. Happy early birthday to my oldest brother, Nick. Nice job. It's fair. It's confusing, but you're not more than one Nick.

Yeah, there's two Knicks in my life. It's weird, but it's cool. Also, we're about to finish the first quarter over here, Jack. Yes, and Alex and I are about to enter the fourth trimester, because this baby is due April 5th, baby. It is. That's the due date. Have you memorized the 4S's, or is it the 5S's,

it's the 5S's? I think I've memorized 4. You got swaddling, shushing, swinging, sucking, and I think it's syrup, as in candy, candy, cains, and cereal. I'm going to have to phone a friend. This is our best podcast yet. Jack, what we got for our first story? The Olive Garden's owner is at a record high stock price. But the numbers, they have layers, like lasagna.

They got layers. For our second story, Picasso is the fastest U.S. company to become a unicorn. Worth over a billion dollars to make your first home a second home. Or your second home of first home? It's a snake to the mongoose situation, Jack. The mongoose to my snake. For our third and final story, the Suez Canal thing that we mentioned yesterday. Oh, remember it well.

It's still blocked. Still blocked. We're looking at the most important 120 miles in the global economy. But before we hit those three fantastic stories. Wonderful mix. Last week, Nick and I mentioned a scientific academic study in Australia. Yeah, people apparently hate Zoom happy hours. That was the conclusion.

So guess what they did at Citigroup, the New York-based investment page. You're not going to believe this. They killed the 5 p.m. Friday Zoom happy hour. New thing at Citibank? Zoom free Friday, starting immediately. In fact, all internal meetings are banned the day before a weekend. Carol in accounting is going to have to just figure out that issue herself that she emailed you at $450 on Friday afternoon. I'm sorry, Carol, we'll see you on Monday.

It can wait. And Citibank went one step further to hook up its employees with little rest. Their own company holiday. This almost feels illegal. City Reset Day. It's May 28th. The entire company, boom, just gets the whole Friday off. The day before Memorial Day, it's a great thing. Not too shabby. They just made it up. Poof. Citibank is a calendar magician. There's a thing going on where investment banks are nervous about overworking their employees. Understandably. So their rival investment bank, Jeffries, is giving every junior employee a Peloton instead of like extra time off.

Must be nice. Hey, Goldman Sachs, your move. Yeah, we suggest you one up these rivals with the permanent three-day week. weekend. We've been asking for it forever. Jack, less spreadsheets, more bed sheets. Less business meeting, more brunch, eaters. Less number crunching. More crunching on dinner at a reasonable hour. Let's hit our three stars. 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 hearing food. It's air candy. They don't reflect the views of the robberhood family. It's all informational just so. We're not recommending any securities. Nope. It's not a research report or investment advice. Not a offer. or sale of a security.

Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member FINRA slash SIPC. For our first story, the Olive Garden, its stock just jumped to a record high. Nick, the era of year-of-year shrinkage is over. The era of year-of-year growth has arrived. Oh, we're talking the Olive Garden, but we're not really talking the Olive Garden.

We're talking Darden restaurants, Jack. It's kind of just the Olive Garden. They also own Longhorn Steakhouse, Bahama Breeze Capital Grill. some go-toes out there. But only the Olive Garden was where I worked for four months, winning three consecutive wine salesman of the month awards. I was about to say Snaggers, every time we start this pod, Jack's like, what can I do to get you into a Brunello tonight? When you're here, your family. This guy's got D-O-C-G tattooed on his left calf. You've never been to the Olive Garden. I was a volume salesman. He was volume, not quality. Dude, I was working on volume. Now, honestly, Jack and I, like, spat out our

Maranara when we saw the Darden stock price record high. You might think restaurants have been the biggest losers of the pandemic. Jack, you'd be wrong. Yes. Now, thousands of independent restaurants have suffered badly. They've had to close their doors. Brutal. But if you figured out how to do takeout and delivery efficiently, you might have been okay.

Okay, you may have gotten through. But honestly, there is a sad reality right now because he got nationwide chains emerging stronger than ever with less competition. Because some mom and pop restaurants definitely went out of business. Case and point. Darden, Darden Restaurant Group's revenues in the past 12 months. All pandemic months are only 20% lower. That's it from where they were a year ago pre-pandemic. That's pretty good. Yeah. And Darden just announced this week that they brought home $260 million in profits from December through February. Honestly,

they're bullish that diners are going to keep taking tours of Italy via the breadstick basket. It's unlimited. They are so confident. They just reaffirmed that they will send shareholders 206, million dollars worth of dividends this next quarter. This is like a birthday check from your grandma. For every share that exists of Darden, they're going to send 88 cents on May 3rd. So if you have a bunch of shares, that money adds up. Oh, and Jack, they just reaffirm plans to spend 500 million dollars on their own stock boosting the value of those shares even more. They are dishing out cash like they're hosting their daughter's wedding. On this, the day of my dividend payment, you don't even call me shareholder. So Jack, what is the takeaway for our buddies? Oh,

over at the Olive Garden. The year-over-year thing, it's going to change how things look the next year. Darden, they show every week how this week sales compared to the same week one year ago. They love donut. This is called a year-over-year comparison. Yep. And guess what, Snackers, for over 52 weeks, year-over-year sales were negative for Olive Garden because the pandemic Olive Garden was worse than the pre-pandemic Olive Garden. The most important thing about Darden's earnings report is big. was that last week, the week that ended March 21st, big week. Sales grew year over year for the first time since the national emergency was declared.

And that is big because we're now at a point where we're comparing the pandemic year two to the pandemic year one for the first time. It's a milestone. And the pandemic year one, 2020, was so bad for restaurants. It was really bad. That Darden expects each week of this coming year to be better year over year than last year. So Snackers, don't be shocked when you see Darden's. second quarter, third quarter, fourth quarter results come through and they show huge growth.

Year over year. And it's not just Darden. 2021 is going to show a reversal of year-over-year trends for all companies most likely. Peloton's growth this year is going to look like a slowdown from last year's search year over year. And Planet Fitness's growth this year will look like a surge from last year over year. So whatever 2020's year-over-year numbers look like, reverse them for 2021. It's a year-over-year For our second story, the Suez Canal is clogged by a huge ship. It's created an epic traffic jam. But it's also a huge tax on commerce. Yeah, spread across the entire world.

That's how you got to think of it. And also, don't call it a boat. Don't call it a yacht. Don't call it a ship. Jack, what do you want to call it? This thing's a vessel. It's a 224,000 ton vessel. Oh yeah, we got vessel status on this thing.

The ever-given, it has clogged one of the most important waterways, really in the entire world, maybe the most important. It's the length of the Empire State Building. Impressive. It's a quarter mile long. Okay. If you walked it from tip to tip, would you walk it? I think about it.

I'd do it for exercise. You get a lot of steps on the ship. Tip to tip is the equivalent of walking around the track at your local high school. The Suez Canal is the body of water we're talking about. It connects the Mediterranean Sea to the Indian Ocean via the Red Sea. All right. So, Jack of Chicago does logistics. The Suez Canal, it does logistics plus.

True. But Mother Nature got involved with. 30 mile per hour winds, an epic sandstorm, low visibility, which caused the ship to get stuck on Tuesday. Basically, they perpendicularly parked in a parallel parking zone. They brought in the experts. They're trying to dig out the sand from underneath this thing to straighten it out. But experts say it could take days to weeks to move this ship out of the way. Okay, fun to kind of jump into the Suez Canal history on this thing, Jack. It's not just featured in the Crown season two.

No, it's not. It is a 120-mile human-built waterway. It is to the world's economy what the LIE is to the entire island of Long Island. It's my way or the Long Island Expressway, baby. Get these numbers. 13% of global shipping trade among nations goes through Suez. 19,000 vessels pass through this canal every year. Jack, every day, 52 ships don't deliver their cargo because of this mis-parked ship. Nick, do you think you could just take a detour? That'd be lovely. That's a lap around the continent of Africa. Then you got to get through Gibraltar.

And Jack, you know how you get through Gibraltar? It's a narrow strait. You got to like, you got to suck in a bit. Then you got to squeeze in a bit. Oh, it'll also be a two-week delay to do that. It's kind of brutal. So, Jack, what's the takeaway for the entire world because of this ship? This giant ship has become a huge tax on the global economy.

It is a tax snackers because billions of dollars of money is being lost every single day. But those billions are spread across the entire world. Whether it's TVs, tank tops, or tomatoes, each one uses oil in some way to get from raw materials to product for you. Okay, Jack, again, huge number here. 10% of seaborne oil goes through the Suez Canal, and this crisis has been a dent to the whole global oil supply. Let me put on my econ hat. When supply shifts up into the left, like we're experiencing with oil, prices rise. And if you buy oil and gasoline right now, you're going to see that directly.

But if you're buying TVs, tank tops, or tomatoes, you're only going to see that higher oil price. Indirectly. Okay, but here's the think, Snackers. That increased cost we're talking about, it's spread across the entire world. It's like an Olympic-sized swimming pool. It's big, but it's being spread across Lake Michigan. That's why you haven't seen the price of oil change, despite this Suez Shiptastrophe. For our third and final story, Picasso just became the fastest U.S. company ever to become a unicorn ever. It's worth a billion bucks, and they're trying to make vacation homeownership a thing for millennials. It's special. I'm spelled Picasso, but they like threw in a few typos in there because, you know, startups.

It's written just like Pablo Picasso. Actually, no, it's not. It's spelled differently. But you get to say, I own a Picasso, but not that Picasso. Right, but there's going to be some like Googling issues. They're going to be like, did you mean Pablo Picasso? No. Jack, what we're throwing in is there are a lot of butts involved in this situation.

Now, the co-founder of Internet real estate company Zillow has raised $90 million for Picasso in equity in six months. Just six months. it is now worth a billion dollars. And to buy up the properties that this company is peddling, they also raised a billion dollars in debt because real estate's expensive and I guess they need mortgages too. So here's what Jack and I find fascinating about Picasso. They know it's hard for you to buy like your first home.

So they're trying to make it easier for you to buy your second home but first. Right. They're in the business of vacation homes, particularly for like city folk who are probably renting. Yeah. Vacation homes are like only used five weeks out of a year on average. By the owner. So you might be the business.

thinking, is this a time share business? Kind of? Yeah, we jumped in snack style. You go to the Picasso website. It's like a top shelf, Trulia. Yeah. The first property you see is in Napa. It's got a sundack. Nice. For private yoga. There's a lot of private shabasna going on in the pictures. And then there's a Lake Tahoe house that's four bedrooms and three bathrooms available on Picasso. It is lovely. You got the wood beams that wrap you in warmth, Jack. This house is gorgeous. And Picasso shows right on their website that it costs $2.6 million to buy this house. and they put in $34,000 of renovations to make it so glamorous. The Stoneheart didn't put itself in there.

Now, Picasso set up an LLC to buy this $2.6 million house. That part is key. And then they sliced up ownership of that LLC into eight different pieces. Right. So you're going to pay $403,000 to get one of those eight pieces and access for 44 nights out of the year. Picasso cleans the house between owner visits. And get this. They swap out the photos, like the framed picture.

to make it feel like it's your house when you show up for the weekend. Which is both satisfying and creepy at the same time. Now, that's what you get. One-eighth of an unbelievable house. What Picasso gets is a couple of juicy fees. Jack, they're getting the 12% transaction fee, which in this case is like $300,000. And then every year, they get 1% of the home price to manage that home,

which in this case is like $26,000 per year. If so facto, you're paying $3,000 a year in dues. Right, each of the eight owners. So it's basically a timeshare coated in millennial paint. So, Jack, what's the takeaway for our buddies over at Picasso? First, we got the sharing economy. This company is the splitting economy. Snackers, in the last decade, the sharing economy has become the dominant trend.

If you got a car, share it with Uber. If you have a home, share it for the weekend on Airbnb. Yeah, and sharing makes a lot of sense because it's optimizing assets that are just sitting idle most of the time. The average car is idle. Sitting in a parking spot, 95% of the time. Yeah, no reason a condo can't be used. when you're away too. And unlike the sharing economy, though, the splitting economy involves ownership and gives you upside. That Malibu Picasso condo is professionally managed. And only a small,

limited crew of fellow owners get to use it so they will take care of it, unlike maybe an Uber or an Airbnb. And because you own it, you can grow your wealth if the house appreciates. The splitting economy could be the next variant of the sharing economy. Jack, and you'll whip up the takeaways for us before the weekend, man. In stock is at a record high. Get ready for the year-over-year thing to reverse. Second story, the Suez Canal, it's still jammed. The ship, it is a tax on the global economy, but that cost is spread out across the whole globe.

For our third and final story, Picasso is trying to make vacation homes achievable. It's not the sharing economy, future, splitting economy. Now, time for our snack fact of the day. This won a record, I think Jack, fifth submission from Kelsey. Let's let's let her take it away. Hello, Snackers. This is Kelsey Black from Austin, Texas. Youana's Gutenberg invented the printing press in 1440.

By 1452, he was printing calendars, pamphlets, and newspapers. He only ever produced one book, though, the Gutenberg Bible. I mean, he printed about 180 copies, but it was one book, and it was the first book ever printed on a printing press. The invention of the printing press was instrumental in the scientific revolution and spearheaded the Renaissance. Because when printing presses became more widespread across Europe, more secular books were printed. The access to printed information was the cornerstone of communicating and advancing scientific knowledge. That was impressive. Yeah, she like stuck the landing on it. That was exactly 30 seconds. A lot of information. And the printing press,

revolutionary. Dissemination of ideas. Couldn't have the podcast without the printing press is what we're trying to say. True. Snackers, you look fantastic today. Remember, it's five star Friday. Scroll down, drop us five stars. Leave a rating, leave a review. Follow us Spotify. Follow us Apple. We'll see you Monday. And if you want to submit an audio snack fact, there's a link to a Google forum in the description of this episode. If you know, you know. And before we go, happy birthday to Nina down in Guatemala. And Eddie Ortiz in San Juan, Puerto Rico. And Dr. Jennifer, Davis, and Dallas. Sounds like a TV show.

And Amy Greenhut in Manhattan, New York. And Pughey, Morganville, New Jersey. And Reck A.B. in Redding, Massachusetts. And Ryan Duriger in Newport, Newport, New York. And Matt Kovalchick in Amas, Pennsylvania. And Kevin Van Delden in Boston, Mass. And Jared Barton in Omaha, Nebraska. And Kevin Herrick in Albuquerque, New Mexico.

And John Reutman in Tampa, Florida. And happy birthday, Valerie Viramantes and Encinitas, California. Happy three-year anniversary to Matt and Sophie Warner in Southampton, UK. Jack, Lindsay and Alex just got engaged over in Chicago. Congrats to Eric McKinney for getting a CPA in Broken Arrow, Oklahoma. And Jack, Mike is quitting his job to start a company up in Toronto. Brave man, Mike. Congrats to Parshanti, Puff the Potty for moving into a new place in Oakland.

And Alex Jordan got into the Berkeley's Masters program. Happy long-distance anniversary to Lucas and Peyton in New York City and Dallas. in this long distance. And Jack, look out your window because Caroline and Alex Angler just moved up to Vermont. Honestly, look out your window. I heard this guy's like making some delicious cheese down there. I'm serious. Look out your window. This is Jack, Nick on Stock of Zillow. 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.