The Best One Yet - 🛒 “Where the rich shop” — Walmart’s renaissance. Jersey Mike’s $8B sandwich. Google’s Chrome divorce.

Episode Date: November 20, 2024

Google’s Chrome Browser is used by 61% of us… but now Google may be forced to split it off.Jersey Mike’s sandwich chain was just acquired for $8B… but it’s really an education company.The #1 non-tech stock of 2024? Walmart… It’s winning on rich families with six-figure incomes.Plus, can a banana duct-taped to a wall sell for $1.5M?... The art market decides today (so take our Spotify poll).$WMT $GOOG $BX🧢 The TBOY holiday merch drop ends Thursday 11/21: Shop now @ www.tboypod.com/shop🎙️ Check out the latest episode of our new weekly deepdive show The Best Idea Yet: The untold origin story of “Levi’s 501s… The World’s 1st Jeans” 👖Wondery.fm/TheBestIdeaYetLinks —-----------------------------------------------------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/ Subscribe to our new (2nd) show… The Best Idea Yet: Wondery.fm/TheBestIdeaYetLinksEpisodes drop weekly. It’s The Best Idea Yet. Hosted on Acast. See acast.com/privacy for more information.

It's Wednesday, Saviche Wednesday, November 20th, and today's pod is the best one yet. This, this is a T-Boy. The top three pop business news stories you need to know today. I mean, I could get used to this, Jack. We're wearing the same sweatsuit three days in a row. I don't like it. Yeties, the winners have been picked for our T-boy holiday merch giveaway, number one. We actually have a second and final giveaway.

If you missed it, go to Instagram for details. We're giving away our T-boy holiday merch. And you know what, Jack? I'm going to wear it tomorrow. I'm going to go four days a while. in the same T-Boy sweatsuit. It looks beautiful. Our T-Boy holiday merch collection, pre-orders end Thursday at noon Pacific, and they'll arrive by Christmas. Go to T-boypod.com slash shop. Snag yours now. In the meantime, Jack, we got three wonderful stories for today's show. What's on the pod man?

For our first story, Google's Chrome browser dominates the internet. It's used by 60% of Americans. But now the courts may order Google to sell off its record-breaking browser. For our second story, Jersey Mikes. Submarine Sandwich Chain was just acquired by PE for $8 billion. But Jersey Mikes isn't really in the food industry. We think Jersey Mikes is in the education industry. And our third and final story is the best performing company of the year that isn't tech. What is a Jack, Walmart?

It's Walmart, Yeti's Walmart is winning thanks to six-digit salaries. But Yeties, before we hit that wonderful mix of stories, I mean, I'm comfy, your comfy, three wonderful stories. I love the mix, Jack. How much would you pay for a banana? Jack, I'd pay 25 cents. How about a banana and a piece of duct tape? Maybe 50 cents. How about a banana duct tape to a wall? Jack, I'm going back down to 10 cents. I'm going to 10 cents. False. How about $1.5 million, Nick? One and a half million bucks for a banana taped to a wall. Please go on, Jack. Get this, Yeties. A piece of art is expected to sell today for one and a half million at a Sotheby's auction.

And that art is a banana duct taped to a wall. This normal but really expensive banana is actually the work of an Italian artist named Maurizio Catalan. He's actually made three pieces of this one-of-a-kind artwork. Yeah, no joke.

There are three versions of this one piece of banana stuck to wall. Oh, and twice, the banana actually got eaten. The art was on display in South Korea and a museum visitor ate the banana. We're actually glad someone this really expensive banana because otherwise it would have rotted in like three days. Rodding aside, the investors don't care because the first banana duct taped to a wall

sold for 120 grand five years ago. But today, this provocative banana art is going for one half million dollars. Unclear whether they replace the banana or not with a fresh one. And yet it is going for 10 times the original price. Sit down, stand up and peel it again, man. Nick, I know banana prices have risen the past five years, but this better be organic. Oh, yeah, it is Jack and I. We are taking bids right now in a poll on Spotify about this banana art. Will this banana duct tape to the wall go over $1.5 million or under $1.5 million. FYI, the wall is not included.

Congratulations in advance to the Bitcoin, bro. Who is the new proud owner of this banana artwork? You're going to have to DIY and tape that banana to the wall after you drop a million and a half bucks on it. Let's hit our three stars. Hey, Shakita, you hear the price on this thing? 15 years before this song, two boys from the Northeast met in the dorm. They had an idea that caused a cultural storm. It's the best one yet, but the best is an norm.

Jack Nick, that's a big diss. 50% that's a fat tip. Tea Boy City on your at list. If you know, you know, because we're ready to go. We can't wait no more, so just start the show. Start the show. First, a quick word from our sponsor. For our first story, Google may have to split off its prized internet browser.

Google Chrome. If that happens, Google would be the first big tech company ever to be forcibly broken up. We've got like three relationship analogies to explain all of it. But Jack, I'm looking back on the history of this fantastic podcast. And we've covered Google search. We've covered Google ads. We've covered Google Maps. We've covered Google Gmail. Covered pretty much the whole Google universe, except Google Chrome. Google Chrome, the web browser that controls 61% of Holo of our access to the internet. Three billion people use Chrome to access the internet. It's installed on MacBooks, iPhones, iPhones, PCs, Android phones, anything connected to the web, it might be connected to Chrome too. Besties, you want to know how Google has 90% of all internet search? A key part

is the 61% they get from Chrome. The Google universe, it's bigger than the Marvel superhero universe. But wait, there's more. Chrome also tracks your activity while you're logged in on Chrome, which lets Google target you with freakishly relevant ads that are even more freakishly profitable for Google. You want to know how Jack shows up in this podcast studio and a new cute top every other week? Well, it's because he's Googling these ads and Google Chrome serves them up some cute tops.

Well, here's the news. Chrome might be forcibly separated from the rest of Google by our courts. Now, Jack, could you please approach the bench and sprinkle on some legal context for us over there? In August, a federal judge ruled that Google is an illegal monopoly when it comes to online search. So to remedy that, you know, illegal monopoly situation, the Department of Justice is asking the judge to force Google to sell Chrome. We've never covered a story like this on our pod.

No, we have not. So, yeah, Google might have to break up with Chrome. I mean, I'm feeling the vibes here. Now, we should point out, investors might actually be relieved by this news because the DOJ could have asked the courts for something. even more painful. Good point. The government could have asked the courts to make Google sell YouTube or sell Android or sell Gmail. Those are hugely valuable, all of them to Google. Or randomly sell Waymo, which would have made no sense, but would have been a wild story too. Could happen too, but still for the first time ever, a big tech company may be forced to sell a hugely popular

product that's also a profit puppy. If Chrome became its own company, that'd be really cool for the news. We would dive in T-Boisd outside S-1. We'd be on the New York Stock. exchange for that IPO. I mean, this would be fun for us to cover. I mean, think about it. If Google had to do this, they would probably end up IPO in Chrome and selling off all the stock in this internet browser company. Besties, what we're saying is you could end up buying stock in Chrome, the number one internet browser. That could be its own publicly traded company soon. Or instead of an IPO, Google could just sell Chrome to one company. Let's whip out the whiteboard here, Jack. Who even thinking that Chrome could get sold to? Open AI would love to own Chrome. Oh, they would. Oh, and Chrome's price tag,

it's estimated by one analyst to be worth about $20 billion. Now, we should point out, if Alphabet does have to sell Chrome, don't cry for them. They're going to get paid if they get rid of Chrome, handsomely. Google would get paid billions of dollars in cash from the spinoff. Again, Chrome is worth about four lifts. And then they could use that money to build another internet browser. But either way, this big news update is like a chaperone breaking up two teenagers who've been grinding on the dance floor, Jack.

The DOJ thinks that separating Chrome from the rest of Google would restore competition on the internet and that customers would be better off. So, Jack, what's the takeaway for our buddies over in big tech? Would consumers actually benefit from this split up? Yeties, there is a reason why our government has broken up monopolies since the Teddy Roosevelt days. Monoplies, like standard oil company. Classic. They destroy competition, they raise prices, and consumers get screwed. But interesting alternative argument.

here today with tech, it's possible that consumers are fine with it. After all, all these big tech products, they are free. The way that big tech abuses their monopoly is very different than the way old monopolies abuse their monopoly. Yeah, picture this yet is your everyday usage. Like, there is a frictionless magic to iPhone, AirPods, and IMessage all syncing up in the Apple universe. And there's a frictionless magic to Google Calendar, Gmail, and Google Chrome all syncing up on your laptop. So in theory, yeah, consumers, yeah, we benefit for more choices like splitting up Google and Chrome. But in practice, consumers might be okay with this big tech monopoly situation. You may prefer the seamlessness to the split up. But besties, we want to know what you think.

Drop an idea in the comments. Do you think consumers would be better off if Chrome was separated from the rest of Google? For our second story, Jersey Mike's, the sandwich chain, just sold for $8 billion. But Jersey Mike's, the sandwich chain, just sold for $8 billion. But Jersey Mike's, Subs isn't actually in the food business. Good point, Jack. They're in the education business. And we'll explain. But funny things yet is, you know, Jack and I have noticed that even more so than politics, few things are more divisive than the terms we use for sandwiches. Where I grew up, we called the sandwich a grinder. Like, I want a six-inch meatball grinder. Jack, where I grew up in New York, they were calling them heroes. When I was in Philadelphia for business school, they were calling

them hoagies. Down on the Jersey Shore, though, they're called submarines. Oh, and the submarines from Jersey Mikes are huge. Jersey Mikes basically turned the cold cuts into a hot business. Let's jump in Jack. Founded in 1956 in Point Pleasant, New Jersey. Jersey Mikes has 4,000 locations today. Jersey Mikes is basically Subway's cooler, more profitable, cousin topped in oil and vinegar, drowning in oil and vinegar.

Or the juice, as they called in Jersey. If you know, you know. But here's the news, Yeties. Jersey Mikes was just acquired by a private equity firm for twice the vows. value of lift. Blackstone is the proud new owner of Jersey Mikes, but they didn't buy it for the Capacola night end. They bought Jersey mics for the cash flow. Yeah, you know, the state of New Jersey, it is known for Taylor Hamjack, but Jersey Mikes is known for turning profits, and we got the numbers and receipts. But Nick, now that they're owned by P.E., those meat slicers are going to have a lot

of mileage put on it. Blackstone, they're getting hungry for that gobble goal. But Jack, I got to ask at this point. Let's talk more to Della. I mean, money. Um, what is the context on the broader restaurant industry right now. This is the worst year for restaurants in years. Besties, remember that whole $20 Big Mac drama we talked about over the summer? People are upset about restaurant prices and they've been trading down to like frozen pizzas. In fact, so far in 2024, it's been a record number of restaurant bankruptcies in America. And yet, Jersey Mikes is defying all those trends. They're feasting on record revenues and just had a really nice exit to private equity. In order for us to really analyze Jersey mics, Jack and I thought we needed a comp, a comparison.

So Jack, how can we compare Jersey mics to Subway? We can compare it to Subway. There's 4,000 Jersey Mike's locations compared to Subway's 40,000. Okay, so Subway is 10 times as many locations. But what about Jersey Mike's performance on a per location basis? Average Jersey Mikes has $1.5 million of sales per location, which is three times more than your average subway location. Subway's only doing $500,000 per location. I mean, Quiznos would kill for these kind of Jersey Mike's numbers.

So Jersey Mike's is crushing it at each location, and they're growing really fast, too. In the last five years, Jersey Mike's has opened more locations than any other fast food brand other than Starbucks. Mike's way must be the right way. But what is Mike's way? It's actually our takeaway. It's in the gab of goose. What's the takeaway for our buddies over at Jersey Mikes? Jersey Mikes is actually an education business.

Now, Yeti's Jack and I have talked about franchise businesses before. But Jersey Mikes is 95% franchisees. Basically, the vast majority of the company is run and managed by other people. So the success of this chain depends on the small business person who opens a Jersey Mikes in their neighborhood. And Jersey Mikes doesn't own these locations. They just give the brand, the recipes, and the playbook, the franchisee owners are the ones who own and operate most of the locations. And that's why the CEO said last year, we're really a training company. That's right. Jersey Mike's ran over 5,000 classes last year to train the franchisees.

That was their real business. They're teaching those local franchise owners who are just getting into the sandwich business how to properly slice that salami. In fact, Jersey Mike's nine-week training program for new franchisees, it's twice as long as the Burger King program. So Jersey Mike's real success, it's not insane. It's in seminars. So in a year of record restaurant bankruptcies, why is Jersey mics enjoying record revenues? Because Jersey mics realized they're actually in the education industry.

Now a quick word from our sponsor. For our third and final story, Walmart only speaks one language and that language is low prices, which is why Walmart just had its best quarter in its entire history. Here's why the best non-tech stock of 2024 is Walmart. And why rich people love Walmart now? But Jack, why don't we just kick things off by going straight to the charts? What kind of numbers are we seen over at Walmart, man? Walmart stock is up 66% so far this year, which is its best year since 1999. Bessies, if you want to know why Walmart stock's doing so well, well, just read their slogan again. Walmart's slogan used to be always low-press. prices. Always. They threw in like three always. They had to make it really, really clear.

But since 2007, it's been saved money, live better. So in this year of inflation, a vibe session, and people getting pissed about the price of a peach in this economy? Record numbers of shoppers have been coming to Walmart for those low prices. Shut down, stand up and attention Walmart shoppers. Here's the news. Walmart just announced their best ever revenue and best ever profit for the third quarter. Besties, every fast food chain we cover has been offering value meals because they're desperate to win back the love of customers. Value meals is all that Walmart does. That's all they are. In every aisle of the store. Walmart is basically a value meal company from aisle one to aisle 42, especially in grocery, which now makes up 60% of Walmart sales. But yet here's what Jack and I

found fascinating about this story. Jack, who is Walmart thanking for their new sales record? People with six-figure salaries. Wealthy people are fueling the latest Walmart search. It's the six-figure salaries. Bessie's interesting detail we noticed in the earnings, but it is not just lower-income people shop in a Walmart right now. They've always gone to Walmart to save money. It is now high-end people shopping at Walmart too. Walmart said that last quarter they gained market share, meaning some people left competitor stores and went to Walmart instead. And the shoppers, they were put in their Walmart goods in a Birken bag. Walmart said that three-quartered of their new customers were upper income, people who made over 100 grand per year.

I heard that Jeff Bezos now shops at Walmart. No, you did it. Yeah, our buddy Timmy texted us. For the record, yet, this is a rumor. Unconfirmed, unconfirmed. In the meantime, though, the rich, like Bezos, didn't just go to Walmart for the low prices. They were going for the combo of low prices and convenience. Used to head up Target, J. Crew, and Whole Foods on a Saturday, but now one Walmart trip does the trick.

And it's because of Walmart Plus. free shipping for online and a bunch of other perks that are in one annual new subscription. Walmart Plus has 50 million paying members. 50 million. Now, that is about a quarter as big as Amazon Prime, but it is still 50 million Americans, man. And most of them are the upper income folk. And that's why I just saw Bugatti in the Walmart shopping market. No, you did.

It could have been Bezos. So, Jack, what's the takeaway for our buddies over at Walmart? Execution is underrated. Yeah, it is interesting thing Jack and I have noticed in over a decade of working and cover on Wall Street. Many of the most valuable companies in the stock market are valued so high based on their potential. Right now, Tesla has the potential to win in autonomous driving and humanoid robots, so it's worth a trillion dollars. Jack, right now, every tech company has the potential to blow up profits through AI, so they're all valued really high. Even oil companies, they're at record high valuations, partly on the potential to transition to,

clean energy. But Walmart, Walmart pretty much only gets rewarded for its execution, not its potential. And the people in Bentonville, Arkansas, they've been executing on transitioning to the Amazon dominated e-commerce world, which is why Walmart is shockingly the best-performing non-tech stock of 2024. Execution. It's underrated. Jack, you'll whip up the takeaways for us for Saviche Wednesday. To end Google's monopoly, the DOJ wants Google to be forced to sell. To sell But if that happens, besties, would consumers actually be better off? Would you take a monopoly for efficiency? Let us know what you think in the comments. For our second story, it's Jersey Mike's. They just sold for $8 billion. It is booming while other restaurants are busting. Jersey

Mike's advantage? It's training. This food chain is really an education company. And our third and final story is Walmart. It's the best non-tech stock of 2024 as everyone flocks to their low prices. Walmart stock. It is proof that. that execution is underrated. And that's why Bezos gets his avocados from Walmart. I'm not fact-checking, man. Buddy, Timmy, it was in the text. But yeties, this pod's not over yet. Here's what else you need to know today. First, Greece. Yeah, the country that struggled with all those debts, they just repaid

$5 billion in long-term debt early. It's an incredible show of financial strength for a formerly debt-ravaged country. Second, shake-shack and Delta. just formed a new partnership 35,000 feet high. Delta will now serve Shake Shack Burgers on domestic flights starting on December 1st from Boston, and then it expands. That sounds amazing. The Shack Burger is Delta's new competitive advantage for airline loyalty. And finally, we just got the numbers on that epic Netflix fight.

It was the most stream sports event in history, 108 million watchers globally. But that live stream was riddled with glitches. This puts Netflix under some major pressure on Chris. Day when they're streaming their first ever live NFL game. And as we mentioned yesterday, Beyonce is doing the halftime show of that Netflix Christmas Day football game. No pressure, Netflix. If Netflix glitches that halftime show, there's going to be riots. No pressure. Now, time for the best fact yet. This one sent in by Yeti Vito over in sunny Santa Monica.

On Monday, we did a story on the only child economy. How the only children in America make different financial and career decisions that have an impact on our economy. Only children are less likely to be entrepreneurs, but they're more likely to become CEOs. Now, interesting detail here. We mentioned that Leonardo da Vinci was an example of a legendary only child in history. Slight correction here. Yeah. While he was an only child from his two parents together, he ended up having 17 half siblings. After Da Vinci's parents had him, they both went on to have more kids with other spouses in Tuscany. So Leonardo da Vinci ended up with 17-5 siblings. It was a complex family situation though.

So he kind of, he was basically risen as an only child. Yeah, and then he basically just focused on flying things and building rocket ships and making a lot of drawing. So he never interacted with him. I love how Mona Lisa is like an afterthought when it comes to Da Vinci's resume. That's why Leonardo da Vinci would have shopped at Walmart, Jack. Okay, that's enough. Yeties, you look fantastic for Savicei. Wednesday, but you'll look even more fantastic if you snag some T-boy merch because you only got

24 more hours to do it. It's a pre-order. It's going to arrive before Christmas, and you're going to look fantastic if you buy this product. Jack, I'm going to move right up to the camera right now so people can see the merch. It's a puffpoint hoodie. The hoodie's amazing. Yeah. It really is amazing. If you're watching on YouTube, check this out. If you're not on YouTube, check us out on Instagram. All these products look fantastic. I'm so proud of it, Jack. It feels like really running a lifestyle business here. The best one yet. This is so cool. Alex is really upset. I haven't gotten her a set yet. I know. We got to get more orders. So yet he's going to t-boypot.com slash shop and grab your merch ASAP. We dropped a link in the episode description too. Nick and I, we'll see you tomorrow.

Before we go, a congratulations to Yeti's Nick and Bridget Rothwell and Hanover, Massachusetts, just outside Boston, who are celebrating their fourth and most fantastic wedding anniversary. Congrats, guys. Happy 35th birthday to Nevin, who's celebrating with his girlfriend Sonia at an incredible dinner, Alby, in Washington, D.C. And Karen Sye and Overland Park, Kansas is celebrating a birthday as a huge Chiefs fan, almost undefeated. Happy birthday to the future business dragon, Luke Baker, in Skinny Atleys, New York. And Jacob Havt, happy 25th birthday doing logistics in Chicago.

And a happy 70 to Sandy Freshie in Menlo Park, California. What a birthday bash, 70th, not too shabby, and Grover Bayer to turn in 13 years old, celebrating down in Jacksonville, Florida. Happy 10-year birthday to Matthew Stewart of Houston, Texas, who like me, loves tall buildings. Loves them. I still look up at the skyscrapers when I'm in New York City. Never gets old.

Congrats Matthew. And Austin Bell Hansley in Morrisville, North Carolina is celebrating his best birthday yet with wife Lex and their cats, Mays and Max. And finally, a big shout-out to Jeremy Brunchfag who reaches out to us on Instagram. Jeremy's been a Yeti for years because he says this show makes him

a most interesting person in the room. But he just shared it with his sister who now may become the most interesting person in the room. So thanks for sharing it, Jeremy, and sharing the spotlight of being the interesting. Yeah, Jeremy, you kind of backfired actually. You're number two now. You're both the most interesting. This is Jack. I own stock of Amazon and Netflix. Nick own stock of Delta and Shake Jack. And we both own stock of Apple. And we both own one Bitcoin whose name is Ben.