...Target, Walmart, and others are sweetening the pot
| When Tarjay picks up the grad check [Ariel Skelley/DigitalVision via GettyImages] | |
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Yesterday's Market Moves | | Dow Jones
35,102 (-0.30%) | S&P 500
4,432 (-0.09%) | Nasdaq
14,860 (+0.16%) | Bitcoin
$46,631 (+6.47%) |
| Dow Jones
35,102 (-0.30%) | S&P 500
4,432 (-0.09%) | Nasdaq
14,860 (+0.16%) | Bitcoin
$46,631 (+6.47%) |
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Hey Snackers, Crack open a Bud for Buddy: Bud-maker AB InBev released Busch Dog Brew, its first (non-alcoholic) drink made for pooches. Just don't drink it by accident. Bitcoin surged to its highest level since May yesterday, breaking $46K. Meanwhile, in DC: the Senate was putting the finishing touches on the $1T bipartisan infrastructure bill. | |
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Battle of the Benefits: Target and Walmart offer to pay 100% of college tuition for workers | Textbooks cost more than the MacBook... At least they double as a door jammer. College education in the US is notoriously pricey. To ease the burden, Walmart and Target are offering free college tuition to their workers. - Walmart is offering 100% of tuition and book fees to 1.5M associates at 10 universities. It's allocating $1B over five years to cover career development offerings.
- Target is offering paid tuition and textbooks to its 340K full and part-time workers. They'll have access to 250 (mostly online) programs offered by about 40 colleges.
Two birds, one scone... It's no coincidence that two of America's largest retailers are upping their benefits now. The labor market is tight, so companies are sweetening the pot to attract workers. Covid fears, child care needs, and boosted unemployment benefits have prevented some employees from returning. Unemployment is still higher than pre-pandemic levels — but there are way more jobs than job seekers. - Record openings: Your local bistro wants its waiters back. Job openings surged above 10M for the first time ever in June, as employers scrambled to hire while the economy reopened.
- Record wages: The average pay for US supermarket and restaurant workers topped $15/hour for the first time.
|  THE TAKEAWAY | The power dynamic has shifted... This year, you've probably seen more commercials targeted at DoorDash drivers than DoorDash customers. From Uber's signing bonuses, to CVS' wage raises, employers are catering more to workers' needs. Nearly 80% of US workers now earn at least $15/hour, up from 60% in 2014. And it's not just lower-wage jobs: some bankers and other white-collar workers are getting salary hikes — and even free Pelotons. | |
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Two food giants splurge $4.5B to get in on the Chicken Wars — but they're already late | Tyson chicken nuggies are shaking… There's a new poultry powerhouse on the scene. Cargill, whose wholesale food products end up in everything from baby formula to cat food, is the second-largest private company in the US (#flex). Now, it's partnering with Continental Grain to snatch up Sanderson Farms, the US' third-largest poultry producer (#doubleflex). Sanderson shares jumped 7% on news of the $4.5B acquisition. The coop is hot… Demand for chicken is soaring, and wing prices have nearly tripled from last year. In the meat aisle, Cargill is known for its big beef business δΈ not chicken. Now, it's paying an 11% premium to add Sanderson's poultry to its cart. The goal: catch up to spiking demand while it's hot. - Fry it: Popeyes viral fried chicken sandwich has helped sales skyrocket since it launched in 2019. Since then, KFC, Wendy's, Burger King, McDonald's, and even Taco Bell have joined the lucrative Chicken Sandwich Wars.
- Deliver it: Dine-in chains like Applebee's and Chili's launched chicken wing delivery services to keep sales up during the pandemic.
- Love it: McD's crushed sales projections for its Crispy Chicken Sandwich last quarter, and says it's only at the beginning of its "multiyear chicken journey."
| THE TAKEAWAY | It's expensive to be late… Chicken was trending years before Popeyes ever fried a sandwich. It surpassed beef as America's most popular meat in 2012, and has kept its favorite fowl status since. Case-in-point: Chick-fil-A has earned more per restaurant than McDonald's since 2018. Cargill missed the early chicken wagon. Instead of buying into the poultry trend low, it's jumping in when prices are through the coop with a multi-billion dollar acquisition. | |
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What else we're Snackin' | - Spendy: Dems released a $3.5T budget plan that sets the stage for massive investments in social programs and climate policy.
- Diverse: The SEC approved Nasdaq's proposal to boost the number of women, racial minorities, and LGBTQ people on US corporate boards.
- Pump: Oil prices fell to their lowest levels in more than two months, on worries that the Delta spread will hurt rebounding demand.
- Rent: Hertz's quarterly sales jumped 62% compared to last year's mid-pandemic quarter — as flights rebounded, so did airport car rentals.
- Trendy: Turkey's largest ecomm platform Trendyol raised $1.5B at a $16.5B valuation, making it one of Europe's most valuable tech startups.
- Cloudy: Tencent Music's streaming rival Cloud Village is pausing its $1B Hong Kong IPO plan, while investors grow wary of China's tech crackdown.
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The Snacks Daily Podcast | All of AMC's US movie theaters — and 95% of its international theaters — were open as of June. That helped AMC beat earnings expectations last quarter, but it's still losing big money. AMC's real pandemic strength = storytelling. | |
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Tuesday | - Earnings expected from Coinbase, McAfee, FuboTV, Poshmark, and ThredUp
Authors of this Snacks own: shares of Walmart, Uber, CVS, and Bitcoin ID: 1 |
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Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed Robinhood account or any other account, and are not an offer or sale of a security. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and customers may lose money, including their original investment. Robinhood Financial LLC, member FINRA/SIPC. Testimonials may not be representative of the experience of other customers and are not guarantees of future performance or success. Robinhood Financial LLC, member FINRA/SIPC. | |
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