The Best One Yet - “World Fried Chicken War II” — Shake Shack’s unveil. Twitter’s pod-cquisition. Alibaba’s disappearing CEO.

Episode Date: January 6, 2021

Twitter just bought a podcast company — we think it could solve the #1 problem in podcasting. Shake Shack lost The Great Fried Chicken War of 2019, so it’s kicking off a new one for 2021. And Alibaba’s legendary founder was MIA because the #1 rule of doing biz in China: Don’t diss China.$SHAK $TWTR $BABAGot a SnackFact? Tweet it @RobinhoodSnacks @TBOYJack @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Learn 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 Wednesday, January 6th. Nick, my new favorite 2021 pastime, podcasting while crock potting. You want to share with everyone the little meat party got going on downstairs, Jack? Two pounds of raw beef chuck stewing in a crock pot with an onion, some prunes, and a bunch of seasons. Chuck, so you know it's good.

By the way, you're going to buy some carbon offsets for this thing? We need some. Trust me. This is our best one yet. Honestly, it's such a better pod. than yesterday. Jack, first story, what do we got? Twitter just acquired a podcast company. Could potentially solve the one biggest problem of podcasting.

We're going to let that sit. For our second story, do you remember, Nick, the great fried chicken wars of 2019? Jack, how can I forget? Well, Shake Shaq just kicked off the World Fried Chicken War II of 2021. The sequel. The sequel. For our third and final story, Alibaba's legendary CEO, Jack Ma, he's been missing. Like literally the human being, no one's seen him since November 2nd.

Pretty straightforward here because business in China puts party over profits. Or else. Or else, no sequel. No sequel. But Snackers, before we hit those three great stories, we want to fill you in on the most important product that's underrated that no one is talking about. Yeah, there is an innovation that snuck in a major December announcement that came out of Apple. All right. In December, Apple announced like their fourth product event in four months.

Shocker. Air pods max. Because if AirPods are a little too subtle for you, Apple just launched a massive $550 over-the-ear, bow-style noise-canceling wireless headphone that could knock someone off if they walk too close to you. But the surprise feature no one's talking about is transparency mode in these headphones.

Okay, Jack and I heard about this thing a couple weeks ago, we couldn't get enough. It is the opposite of noise canceling. Transparency mode lets you hear the world around you as if the headphones weren't on at all. No. even though they are on these headphones. All right, so we're thinking this is like the perfect coffee shop feature, right, Jack?

The giant headphones over here is they signal that you're working hard and you don't want to talk to anybody, and there's no chance you can take that seat. That's my computer bag seat. The annoying latte guy keeps coming over. Can I borrow that seat? You don't want to talk to him, but now you don't have to say anything because he got the headphones on, but you can still hear with them on. It's like your own personal do not disturb mode.

All right, so let's say you're not at the coffee shop. Big headphones, perfect opportunity when you're at work. Martha sees you wearing these headphones and assumes you're crushing a TPS report because you got those big headphones on. But because these Apple headphones let you hear while having the headphones on, you're not just crushing that TPS report. You're subtly listening in on the rumors about Frank, that coworker that nobody likes. Nobody likes Frank, and you can hear Martha talking about them. Snackers, the AirPod Max's transparency mode. That is the actual best product innovation of 2020.

Let's hit our three store. We got to get something legal out the way. The 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. We're not recommending any securities. 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. Robohood Financial, LLC, member Fenra slash SIPC. For our first store, Twitter, just acquired a social podcast. podcasting app called Breaker. Not the biggest podcast acquisition ever,

but possibly the most interesting. All right, Jack, we've got to travel back in time here. Podcasting, it really began, I mean, it really used to just be, it was one company. That's what it was. Emphasis on the pod in podcast because it was literally named after the iPod

way back in 2004, the first podcast ever. All right, then we got to fast forward 15 years later. Spotify realizes, hey, this whole podcast thing, we could potentially make more money off these podcasts and engage people more deeply than we can with music. Evermore, T. Swift, ever more. So then Spotify ended up splurging a billion dollars on original content podcasts over the next couple years. They own the famous Joe Rogan podcast. They own Michelle Obama's podcast. Yes, they do. Even the royal family, the Windsor family, as a podcast with Spotify. Megan Markle, did you hear Jack? Archie actually said a few words on the podcast the other day. It was charming. I don't even know who Archie is. I guess I'm behind you in the crown.

He's going to be sequel 12, Jack. Thanks to that original content shopping, Spotify has been up to, they've established themselves as the clear number two in the podcast mark. All right. So, Jack, let's go full disclosure on this one. So Snackers, Jack and I jumped in Snack style to ourselves. We host a podcast. Yeah, we do. So we're deep on this stuff. 71% of you listen to Snacks daily through an Apple platform,

whether it's iTunes or Apple Podcast or your Apple Watch. 18% of you are listening on a Spotify app. The rest of you listen through an obscure app that you swear is better than Apple and better than Spotify. Probably recommended by your uncle, and we're going to guess the name probably dropped a couple of vowels to sound startupy. So clearly, two companies dominate, but new developments could challenge the two-player Apple and Spotify podcast dominance. That's right, just over the last couple weeks, Amazon made its first podquisition. $300 million Amazon spent to acquire Wondery, a podcast studio. So basically this deal, Amazon buying Wondery, it's just like Spotify.

It is all about original content. Wondery has dozens of podcast shows that have a lot of downloads and tons of episodes. Three quarters of these shows are, you know, unsolved Midwest crime stories. That's how this goes down. I've still never listened to a single true crime podcast. I haven't either, Jack. We don't even listen to those kind of pods. But those are like, those are the pods people love.

People love those pods. Now, we think Amazon's podcast play is all about smart speaker engagement. They want you asking Alexa, what's the news? And then they'll serve you up a fresh podcast. Oh, Jack, we didn't do a trigger warning. We got to warn people when we say Alexa. Sorry, we said Alexa, everyone. Sorry, we said Alexa.

Snackers, we're not sure if Amazon's podcasts are going to live on Amazon Prime Music or on Audible, but probably both. Okay, so you got Apple and Spotify. They dominate podcasting. Amazon is making its first move into podcasting. But then there was a bigger, more interesting announcement, Jack and I noticed, related to podcasting. Twitter announced yesterday they acquired Breaker, which calls itself the social podcasting app. And here's what Jack and I find so fascinating about this acquisition.

They didn't acquire the content from Breaker. Twitter acquired the technology of Breaker. Breaker actually doesn't even have any content, Nick. All Breaker has built is an app to play podcasts. Yeah, their differentiator is that they're all about community features, not not 143,000 murder mystery episodes of podcasts. Unlike on other podcast apps, you can like and comment on Breaker about your favorite episodes. You can also follow your friends and see what they're listening to, and it's super easy to share your favorite episodes. So Jack, what's the takeaway for our buddies over at Twitter? The number one problem in the podcast industry, there's nowhere to

talk about podcasts. Snackers podcasts are conversation starters. Every takeaway, every single takeaway that Jack and I get to whip up, we do it because we love you, and because we think you'd want to share it with a friend, with a buddy, with a snacker, with your mom, call your mom. We want to talk to you about our takeaways. So we awkwardly, Nick and I at the end of every pod, we're like, hit us up on Twitter or Instagram or Facebook or wherever you talk about podcasts.

And that is because the two dominant podcast players are only one-way conversations right now. They're basically conversation enders. We can't talk to you on the Apple or Spotify apps. Apple just lets you review our pod, and Spotify makes it easier to share, but we can't talk to each other. But if Twitter launches a podcast player using Breaker's technology potentially, then that could be a growth play for Twitter we're thinking.

People might listen to podcasts on Twitter instead so that they can tweet, comment, and troll mid-episode. You, us, we'd all be chatting about our shows on the same place, and you probably already have Twitter. At the end of the day, podcasts are conversation starters. But today, they don't have a conversation space. For our second story, the great 2019 fried chicken wars. They ended. They ended in 2019. But Shake Shack just declared World Fried Chicken War II.

Yes. Two with Roman numerals. So we know we're serious. It's the sequel. This one's the sequel. In 2019 Snackers, Popeye dropped the spicy fried chicken sandwich, ran out in three weeks, and caused human stampedes to find the next one. Jack, I mean, it was like traumatic. Brought me back to the Tomagacci stampedes of 1998. But that triggered the modern poultry space race for other fast food companies to create their own fried chicken sandwich. In fact, we noticed that McDonald's franchise, he actually wrote a letter to McDonald's saying, quote, unquote, JFK called for a man on the moon. We need a fried chicken sandwich from McDonald's.

Ronald McDonald's is rolling in his grave that we don't have a fried chicken sandwich, McDonald's. I think he's alive, Jack. I think he's timeless. Oh, shoot. Yeah. So Jack and I get back to the pot. It's Monday. New Year's resolutions. everywhere, and everyone's resolution is get into better shape. And then, that's why we were surprised

to see McDonald's announced on Monday. Three new fried chicken sandwiches are coming to their menu. Everyone's signing up for Weight Watchers, McDonald's dropping down three fried chicken hammies. Then on Tuesday, Shake Shack launches a Korean fried chicken sandwich with chili paste. They've been working on this thing for five years over at Shake Shack. Goes back to a trip they took to South Korea back in 2015. Well, nationwide until April, That fried chicken Korean sandwich is going to be available at all Shake Shack. So Jack and I are looking at all these different new fried chicken sandwiches, and it's all part of a trend we've seen.

Constant menu innovation like this, that's become the key to fast casual food strategies. Part of it's simple. You want to offer fresh items to get new diners in the store. It's the novelty. Take, for example, Chipotle. Recently tested out their cauliflower rice. Turns out one out of three eaters of their new cauliflower rice was completely brand new to Chipotle.

The other reason for the menu is, innovation is to get ahead of trends. So globally, the chicken category, it's actually twice the size of the beef category, and it's growing even faster than beef in the U.S. So Shake Shack and McDonald's figure they better get more poultry on their menu because the rest of the world's doing it. Case and point, Shakeshack back in September decided to drop some hot chicken sandwiches new to their menu.

And that menu innovation is the reason sales jumped in the third quarter for Shakeshack. So, Jack, what's the takeaway for our buddies over at Shakeshack? The 2021 fried chicken wars, they could signal the official end of the adpocalypse. All right, Snackers, Jack and I have spoken to you about this before. During the pandemic, we said that ad spending would drop because that's what typically happens during a recession. If you're a business owner just trying to keep your store open, you're probably not crafting an expensive new TV app.

No, you're probably not. But since stores have reopened in the last few months, fast food has pivoted to drive-thrues. And like there's vaccine and economic clarity, we've got a different situation than the early pandemic. With a better economic outlook, companies could have the confidence to start spending on ads again. And now we're seeing Shake Check and McDonald's and Wendy's all launching new fried chicken sandwiches to compete with each other in just the last couple months. We think we are about to see a bunch of ads for these new white meat sandwiches.

And if we do, that means the pandemic-induced adpocalypse is officially over. For our third story, Alibaba's stock just jumped 5% yesterday on word. their CEO is not dead. Wow. This shows the huge and fundamental difference of doing business in China versus the United States. All right. So Jack and I are talking here about the other Jack. Jack Ma, former teacher, present billionaire, current location Jack of Jack Ma unknown. The former English teacher, Jack Ma, he is a hard worker. He rode 17 miles a day on a bike uphill to learn English. Both ways. He also applied for a job at KFC with like 23 other people. And he was the only one who didn't get the job. So what we're saying is when Jack Ma falls off his bike, he gets back on the bike.

And then he founded Alibaba 21 years ago, and that became the Amazon of China. Now, we mentioned Jack Ma's hardworking. He actually evangelizes the 996 work week, which is 9 a.m. to 9 p.m. 6 days a week for a total of 72 hours. Sounds absolutely awful. Opposite of the four-day work week. We're way, way bigger fans of the four-day work week. And Snackers, today, you could argue that Alibaba is more innovative than America's Amazon. Yeah, it's basically it's Google, it's Amazon, it's FedEx, it's PayPal, all that rolled into one with a nice bow on an app. Alibaba's stock, however, is down 30% since October on some really bizarre and kind of scary news. All right, so this one's kind of strange.

It all started back in October when Ant Financial, a different company, the PayPal of China, basically, was prepping for the biggest IPO ever. Alibaba, under the leadership of Jack Ma, they invested early in Ant Group because they saw the need for digital payments in the e-commerce future. So Alibaba owned 30% of Ant. So Ant's IPO was going to be like a big payday for Alibaba and therefore, Jack Ma too. That's because Ant has one billion customers. They offer every financial service imaginable. It's pretty much like the Pizza Hut buffet for FinTech Service. Picture the little kale in between all the cottage cheese.

of a thing. But that is when Jack Ma made a fatal mistake, he criticized the Chinese government. Now, Snackers, in the U.S., you perfectly are allowed to criticize the government. People actually do it all the time, even though I'm not a huge fan of the DMV. That's okay. Not everyone's a fan of the DMV. And you're allowed to complain about the DMV because you are protected by the First Amendment of the Constitution. Freedom of speech, though, not a right in China. That's why it was a big deal in October when Jack Ma at a conference during a speech criticized Chinese regulators for stifling tech innovation. Yeah, with outdated regulation. Get this. Here was the result. The Ant IPO, that huge biggest IPO ever, it was blocked by authorities and they called in Jack Ma for questioning.

They wanted to make an example of him speaking out against China. So they actually ordered Ant Group to return to their payment origins because of what Jack Ma said. And Jack Ma hasn't been seen in public since then. And for good measure, the Chinese government decided to launch an antitrust investigation against Alibaba after Jack Ma said what he said, which dropped Alibaba's stock more. Oh, and by the way, PFWTMs just told CNBC yesterday, Jack Ma is alive. He's just laying low right now, keeping a low profile. We're glad to hear that he's alive, but it's a little strange for a stock to jump because he's alive. So Jack, what's the takeaway for the other Jack and our buddies over at Alibaba? The number one stakeholder for Chinese companies, it's always the Chinese government.

Alibaba isn't a Chinese knockoff. Honestly, it is an innovative, profitable, influential, powerful, $650 billion giant. Alibaba is a symbol of China's economic rise. And remember, China was the only economy in 2020 that actually grew. Great point, check. But Chinese capitalism, it has one crucial difference from American capitalism. China's government is always in charge. In the U.S., companies want to please customers and their shareholders. In China, you make sure the Chinese Communist Party is happening, and then you worry about the profits. China's most successful company ever now faces its most challenging moment ever. Because the founder broke the number one on Ridden Rule. You don't diss China.

Jack, can you whip up the takeaways for us over there after you're done the beef? Twitter just acquired breaker, the social podcasting app. So if Twitter has podcast to its app, that could solve the number one problem in podcasting we're thinking, number one. For our second story, Shake Shack just declared a second fried chicken sandwich war. Yeah, get ready for a whole bunch of fried chicken ads. That's what we're trying to tell you. For our third and final story, Jack Ma is alive, but it's alarming that that is even news. Yeah, you're totally right. Alibaba has been punished for forgetting the number one unwritten rule for Chinese business. Now, time for our snack fact of the day. This one tweeted in by Sarah Avizo from El Paso, Texas, now in lovely New York City.

Nick, did you know that January is named after the Roman god Janus? Okay, I'm a January birthday guy. I knew that part. Didn't know the rest of this. This is wild. He has two faces so he can look simultaneously into the past as well as the future. It's deep. Let that sink in.

January, looking to the past and the future. My meditation app this morning told me neither. Yes. Focus on the present. Moment of Zen, Jack. Moment of Zen. Snackers, you looked fantastic this Wednesday. this again tomorrow. Jack, what do you think, H, Y, HY, HY, YSD? I am 100% in. Let's do this. Have you had your snacks daily? Ask your friends. HY HYSD. We'll see you tomorrow. If you know, you know.

And before we go, Snackers, big congrats to Snacker Prince Brooks just had his first art show for his photography over in Pennsylvania. Incredible. And congratulations, Garrett and Jasmine for hitting three years married together in Pahau, Hawaii. And happy birthday, Carlos in Madrid, Spain, and S.B. in Middletown, Connecticut. And Luccelli Adoriblay in Hayward, California. And Evelyn Rose, happy second birthday in Bridgeport,

Connecticut. Snackers start young. And a patch in Cleveland, Ohio. And Michelle Ayala in the Woodlands, Texas. And Mabel in lovely Philadelphia. And Raj in Pacific Palisades, California. And Michael Mervid rolls off the tongue in Dallas. This is Jack. Nick owned stock of Alibaba,

Shake Jack, Apple, and Chipotle, and I own stock of Spotify and Amazon. 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.