Chipotle's new product unveil: the e-rrito plus
Want to spice up your company's Zoom life? You can now invite a llama, goat, or other farm animal to your video conference through a new service: "Goat 2 Meeting." We heard cows are udder geniuses on marketing calls.
It all comes down to this... The #SnacksMadness Championship is upon us: Tesla Model 3 vs. Costco Annual Membership. Who will be your Snacks Madness TBOY? Vote here.
Stocks jumped Wednesday as some solid earnings lifted investor morale. We're looking at you, Netflix and Chipotle.
So like, did Carole do it?... Asked the 34M people who streamed “Tiger King” in its first 10 days. We know Netflix has been benefitting from the lockdown economy — it’s practically the epitome of a “stay-at-home” stock. But its quarterly numbers shocked even the biggest optimists:
“I just finished Netflix”… Highly unlikely. Those new shows “magically” appearing on Netflix during quarantine?… That warm feeling that Netflix will continue releasing thrilling Spanish-language series even when the world ends? All part of the plan...
The more you grow now, the slower you grow later... Just like the growth spurt you had as a kid, Netflix is having a major growth spurt in the lockdown economy — but it's not likely to last at this crazy pace. Netflix already takes up 72% of home streaming time. The new subs it's gaining now will likely take away from its future growth. Plus, people who aren't getting on the Netflix bandwagon during lockdown will probably never get on at all.
Guac is virtual... Chipotle was feeling the pain of the corona-crisis: after two months of double-digit growth, its sales dropped 35% during the last week of March. But the burrito legend stuck to its guns and saw the bowl half full — it even bumped hourly employee pay by 10% and doled out bonuses. Most importantly, though... it went extra digital this quarter:
A techy burrito factory… Chipotle has been turning into one, and the transformation has accelerated while its tables are closed:
A new leader can completely change a company's direction... CEO Brian Niccol (formerly Taco Bell's leader) took Chipotle down a completely different Chipotlane. In the 2 years before he became CEO, Chipotle's stock fell 60%. In the 2 years since, Chipotle is up 246% thanks to Niccol's forward-looking biz moves (shoutout Chipotlanes). Niccol may not be a gourmet foodie, but his digital strategy is coming in clutch.
Not just a phone network… AT&T is a jack of all media and communications trades. It owns pretty much everything, except for your spirit: CNN, HBO, TBS, Warner Bros, DirecTV, and (of course) AT&T wireless are just a few of its many possessions. There's a lot going on. And you know what they say about jacks of all trades...
Master of none?... AT&T's earnings this quarter were not pretty, with sales and profits both declining. The corona-conomy has dealt a triple whammy blow to AT&T's prized media possessions:
It's official: cord-cutting has accelerated... Last month, we summarized “accelerating trends” that we predicted would happen in the corona-conomy. AT&T's earnings provide the data confirming that cord cutting is taking off. AT&T has lost 19% of its cable and DirecTV subscribers in the past year. HBO Max, which launches on May 27 for $14.99/month, is AT&T's big streaming hope to offset cable losses.
Netflix's earnings proves it's thriving in the corona-conomy (not surprising). What struck us was just how much it's thriving and why it's beating all its streaming peers.
But with Quibi, HBO Max, Disney+, and Peacock around now, will the lockdown boom last? More in our (highly digestible) Snacks Daily pod.