Hey Snackers,
In case you were wishing for a way to 3D print your burger patty: this startup is 3D printing burger patties (steak also an option). Make sure to go with "double-sided."
Markets dropped as Monday's tech rally fizzled. Stocks most eager for an economic reopening like Carnival and Delta plunged. States are rolling back reopening as COVID-19 cases surge — the number of US cases nearly doubled over the past week and a half.
Ditching styrofoam cups wasn't enough... Dunkin' (dropped the 'Donuts') just hit a new extreme in its fancy-fication quest. Dunkin' will close 450 locations in Speedway gas stations by the end of the year. These smaller in-station spots offer a limited menu — you hit 'em up mid-tank fill and order just "coffee."
Stirring the (coffee) pot... Over the past few years, Dunkin' has inched toward this "Next Gen" vision — but it risks alienating OG fans as it fancy-fies. Dunkin' wants:
Dunkin' wants to change its brand perception... That's because it makes more $$$ from premium drinks and alt-meat sandwiches than $2 cups of joe and glazed donuts — Espresso now makes up 10% of Dunkin's sales mix. The Speedway locations account for a small fraction of Dunkin's sales (less than 1%), but they have a big impact on its brand perception. Dunkin' is crushing the lowest part of its brand identity: Speedway Dunkin-ettes.
Calculating calories in a "medium" avocado... Acquisitions get a lot of buzz, but today we've got an un-acquisition on our hands. Under Armour bought MyFitnessPal back in 2015 for a caloric $475M. Now it's trying to sell the diet tracking app, according to The Information. Let's rewind to a time when UA was trying to expand beyond apparel:
Protect This Clearing House... As consumer tastes shifted, Under Armour focused too much on the "ath," not enough on the "leisure." Its 2019 sales grew just 1.4% (compared to Lululemon's 24% growth). Now the corona-conomy is messing with its financial struggles:
Big acquisitions have big opportunity costs... UA spent $710M on three fitness apps that seemingly haven't done much to help its brand. What could Under Armour have spent that money on instead — aka what was the opportunity cost? UA could have acquired or built its own athleisure line to slow Lululemon's threat. It even could have tried to buy a company like Peloton which was worth way less than $710M when Under Armour splurged $710M on these apps.
Soaking up that summer sun... Residential solar energy company Sunrun is acquiring Vivint Solar in an all-stock deal valued at $3.2B. Vivint stock soared almost 40% on the news, and SunRun shares jumped 23%.
Corona-conomy rained on solar... On one hand, the pandemic made cost saving and self-sufficiency sexier. Home solar allows you to ditch the $100/month electricity bill and harness free energy (aka sunlight) from panels on your roof. But you still have to pay to get them installed, even with $0 down monthly financing.
Solar has a customer acquisition problem... Even for those who aren't motivated by renewables/the environment, solar can save $$ on monthly electric bills. But only around 2% of US homes are using solar power. That's partly because the market is absurdly fragmented: there are 10K solar companies and no clear industry go-to. Consolidation could help a national brand emerge to bring solar mainstream.
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Disclosure: Authors of this Snacks own shares of Uber, Alphabet, Microsoft, Lululemon, Twitter, and Amazon
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