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This is Nick, this is Jack, and this is Snax Daly. Welcome back. It is Monday, August twenty fourth. Today's podcast is the best one yet, best snacks daily we've ever done. Jack, what's the first story for us? John Deere sells a three ton tractor that you can supersize to five tons. Yeah, huge equipment companies are struggling to sell their million dollar machines right now because the world is just too crazy right now. Second story, Jack, what do we got?
Taco Bell just unveiled its restaurant concept of the future.
Spoiler alert, no tables to drive thru lanes and a GPS tracking system that knows when you're almost there and hungry for our third and final story, the holy grail of e-commerce delivery is Bouis.
So Bastin based drizzles business model reveals the challenges of delivering highly regulated drugs because don't forget that lesson from seventh grade health class.
Alcohol is a drug. But before we jump into all that good stuff, Jack, Sunday fun day. Not happening right now, Jack.
Rosé all day, rosy. No way. Jack Sun's out, guns out. Well, if you're alone in the middle of a field with one big town, I guess you can.
Yeah, Jack and I can never really pull that one off, but er B and B we noticed right before the weekend whipped up the party ban effective August 20th. If you're booking an Airbnb, you may not host a party at that Airbnb property. And Airbnb says that policy shall remain in place indefinitely. Now, 73 percent of Airbnb s already had banned parties per the House rules, which are determined by the host of that property.
If you got to say per a lawyer was definitely involved, as well as being of lawyers, it is now a corporate policy. No parties known internally at Airbnb as the party pooper policy, yet the old PTP, the other PP.
But Airbnb is lawyers, we noticed, didn't do much diligence on the fine print for this thing. We were trying to figure out like what is a party? And all they said was that there are definitely no gatherings allowed of more than 16 people adding Airbnb.
But then they clarified in a terrible way by saying no parties, even if fewer than 16 people as well. So if fifteen people, it's fine unless it's a party. So what constitutes a party? How does one define a party, Jack? And you have chips and no, you may not. You may have chips or dip. Choose one, because if there's both, it's a party, Jack. And you have a theme. I just ask the judge, is that Airbnb?
If there's costumes, it's a party.
Jack, what if your host Tammy says, please bring your own. I don't know anything. If the letters B, y'know, are on the invitation, it's a party.
So how old do you make love in all the. Not old enough for what?
Old enough to party three stories. You tune in the next day. He spoke to the lawyers and we got to get some legal out of the way. That's about the Henry food is the candy. They don't reflect the views of her family. It's only formational. Just so you know, we're not recommending any securities. No, it's not a research report or investment advice, not an offer or a sale of a security by next is digestible business news for you.
Finance, LLC member, Fagbug APC. For our first story, Taco Bell just announced an entirely new store concept.
It's called Go Mobile, and it is the next level of convenient vacation in restaurants knackers.
You know, we're thinking we've all got it. It's in the back of the pantry. It's kind of near the oatmeal. It's the old El Paso Taco Seasonings.
Well, you finally used during this covid-19 shelter in place. So Taco Bell sales fell by eight percent last quarter.
But here's the wild thing about Taco Bell. They also served five million more cars this spring than they did last year.
And that's a nice sign. So Yum Brands, which is the company that owns Taco Bell, its stock is just below its pre covid-19 highs. So Taco Bell is like this. Their sales are down, but their drive thru sales are killing it. So they came out with this completely new concept. They're calling it Go Mobile and it comes out on January twenty twenty one. This is basically air traffic control by the FAA. Yep. But for Nacho's think, LaGuardia meets Doritos Locos Tacos.
Now, this restaurant looks like a small, square shaped Taco Bell surrounded by parking spaces and drive thru lanes are basically with just a kitchen inside. Now, there are to drive thru lanes, which is like that's marginally better than a one drive thru lane operation. But Nick, one of those drive thru lanes is like TSA PreCheck are clear. It's reserved for Taco Bell loyalty members only.
So here's where it gets interesting and why Jack and I found this concept so fascinating. Taco Bell is going to know when you're almost at the Taco Bell. Get this snackers. Your Taco Bell app will alert the restaurant when you're like one point three miles out.
And then the manager of the Taco Bell is going to be like, Jessica Jassi, finished that burrito, put it under the heat lamp because they're going to be here in three minutes. Then you get the alert on your phone. Supreme soft taco party pack for party of one awaiting your jeep. That window three. It's incredible. You get your supreme soft taco party pack without having to touch anything. Because we assume they have those grocery store style doors open up for you, plus Taco Bell is doubling down on the number of parking spots in the space by like literally having double as many parking spots.
If you don't want to run up to window three to pick up the food yourself, who does? They're going to have those old school bellhops. But with I. Yes. Doing curbside drop off so you don't even have to get out of the fancy. Well, expensive. They're going to replace the roller skates with an Apple product.
Now you get to eat in your car and Taco Bell, does it have to interact with you? This is Jack Nicholson, stock of Apple, the new Taco Bell store concept we're talking about. It knows Dynan is dying. So it's all about eating on the go as much as possible. So, Jack, what's the takeaway for our buddies?
Over at Taco Bell, restaurant chains are leading the greatest jump in convenience innovation ever snackers. When it comes to these new Taco Bell stores, you benefit from all the knows.
You don't need to wait in line. There's no human contact. There's no waiting for your credit card to process. And there's no cold, soggy food because it's been sitting there waiting for you.
But what's key is that the stores have Taco Bell. They are benefiting from all this all those things we just said that there's none of that means less wasted time for the restaurant doing slow things and more time cooking the food and getting them into customers. So honestly, Jack and I are looking at this and we thought Chipotle Chipotle lanes were like peak restaurant takeout convenience. Those drive through is that you access only with the app. They are app optimized to increase speed and they've boosted sales by 10 percent at Chipotle locations that have.
But Taco Bell just kicked it up a notch with a drive thru that's basically stocking it. And those are two and a half miles away. Taco Bell is go mobile restaurant concept is like passing where the receiver's going to be true, not where the receiver is. Right. I love what you did with that. Now, there is no limit at this point to where we can eliminate friction in the food buying process. Who will be the first to replace those N.W. rollerskating beer servers with roller robot servers?
That's the next step for our second story.
John Deere? S multi million dollar Mualla machines aren't getting enough love in the current economy.
They're not getting bought. So we're jumping into its famous waterfall profit chart.
All right, Snackers, if you want to appreciate John Deere, you got to look at this like the machines they make. Jack Salmiya, picture one. It's so big I couldn't even download the PDF.
Apple can't handle the size of these tracks. It's like a gigantic tractor pulling another gigantic tractor that's like harvesting millions of corn on the cob.
It looks like Starship Enterprise is the kind of thing that lives with its legs, not with its back. But John Deere announced bad news Friday, but it wasn't as bad as expected. Yes, the stock actually ended up jumping five percent before the weekend. Now, John Deere, a man who was born in Vermont but a company that's based in Illinois, has two divisions, agriculture and turf. That's the first division. It's for farmers. Its profits were up.
The second division is construction and equipment. They sell huge machines to construction companies and properties are actually way down for that division.
So Jack and I toss down some overalls and we are jumping in literally snack style to their earnings report to see the waterfall profit chart.
Now, the CFO of industrial companies that build physical things, they love great guys, waterfall profit charts, they don't the fancy ties they prefer waterfall charts, waterfall charts, the Instagram bio of every industrial earnings report. Absolutely. These things explain the five accounting reasons the profit changed from like last quarter to this quarter for John Deere.
They showed that last year's second quarter profit and this year's second quarter profit with all the ups and downs in between that caused the difference. The first thing you notice is that like volume, how much they're selling. That was way down. John Deere sold way fewer backhoes, way fewer planters and way fewer fertilizers than last year.
But here's the kicker. The prices for all that good stuff, those were way up.
Not that many companies make diesel tractors the size of small planets like John Deere.
So John Deere had leverage to determine those super high prices.
Now, also, there's like three other categories for smaller ups and downs, like foreign exchange, like how many farmers said, my tractor is broken, you need to replace it with a new warrantees.
Then you got the research and development costs because they're trying to whip up like a plant based self-driving tractor.
So there were ups and downs, but it was mostly downs because it resulted in profits and sales falling by 10 percent. You'll look at all that and it's neatly arranged in a waterfall chart that looks like a waterfall and well tweeted out well tweeted out.
It'll give every former investment banker PTSD. It's not fun. So, Jack, what's the takeaway for our buddies over at John Deere? There is no demand problem going on over John Deere. There's an uncertainty, prop snackers.
The pandemic hasn't changed like people's need to eat food. Right? So John Deere is customers are just as busy planting an. Harvesting tomatoes now, as they were before covid-19, but the difference, Jack and I have noticed is that there is uncertainty. Think about it. Big farms have some flexibility when it comes to timing of buying new tractors and buying new equipment. All right.
Now we've got a huge political election and a huge trade war with China. So sales of tractors are down because things are so uncertain if you're playing it up soybeans.
But you don't know if China is going to buy them because the tariffs, you don't know how many soybeans to plant. So farmers are thinking to themselves, I could spend two million dollars on a shiny fancy new track. Nice. Or I could keep it as cash because I don't know what's going to happen tomorrow. The answer is you always treat yourself.
So when political and international and pandemic situation stabilize, we're thinking sales for John Deere like companies should improve. You don't buy a million dollar twenty five foot tractor when things in the world are insane. Or maybe you do.
Jack, that actually seems like a perfect time, actually. The farmers did last quarter, but not as many as the previous one.
For our third and final story, we got our unicorn of the day drizzly, the largest alcohol delivery platform in the US. It just raised fifty million dollars to show that not all delivery is created equal. So true, Jack. Now, before we jump to this, Jack, I got a surprise for you. I missed you over the weekend, so I invented a cocktail for you. Martels Mocktail. Actually, no, it's called a Jack Tale.
And here's what it is. It's two parts German brandy, two parts seltzer, pimple mousse. I love that. And one part extra organic maple syrup.
Oh, house waiting for the maple syrup to go. And I made one for myself, too. It's called a Nick Rhône, but we'll save that for another pot.
The perfect amount of maple syrup is always a symbol of maple syrup.
So snackers alcohol delivery is basically like the fros of twenty twenty. Your favorite local watering hole is closed, but you're wanting to get your drink on is up. So it turns out like in January, only a measly two percent of alcohol sales were actually conducted online and that is expected to climb to twenty percent in just a couple of years.
And that's being accelerated by shelter in place covid-19, which leads us to Boston based Drizzly, whose second quarter sales quintupled and it's now profitable. This is the booze delivery beast who experienced a seven hundred fifty percent jump in first time users coming to drizzly dotcom this spring. The most innovative thing out of Boston since the hazelnut pump over at Dunkin. But here's the shocker. About their fifty million dollar fundraiser drizzly. Some of it's going alcohol delivery, but a lot of it's go into a thing called Lantau.
That's right. Booze wasn't enough for drizzly. So they also launched a cannabis delivery company. Yeah, so drizzly, Sonya, like forty three different types of cars, lanterns actually selling something called bootylicious strain of cannabis, which apparently tastes like cookies and cream.
Pineapple Express is so last year.
This year it's all about the bootylicious, cannabis, booze and gambling. Those are things that just like they can't use insta cart to deliver them to you. The executives at Door Dash would have a panic attack if they had to start delivering those products. So what separates Drizzly from the rest of those other delivery apps is their expertise in regulated consumer products, pot, booze, gambling products.
That's what Drizzly does. And it's only available in thirty three states and it can only add four states a year because it's so complicated to get approvals.
The thing about alcohol and cannabis, every state has their own laws. So Drizzly has a team of lawyers who need to like pass the bar in Kansas before they can sell product. You need to pass it like twice up there. Case in point, everything's different in every state.
In Vermont, you can't change beer prices depending on the time of day, which technically means happy hours illegal.
It's actually the only flaw of the great state of Vermont. They could remarket this and just say every hour is happy hour. We'll see if they run with it. We extended happy hour by twenty three hours. Everybody in the state of Illinois, your doorman can sign for alcohol, but maybe in the state of Montana you need like an ID and someone to verify it for you to make that happen in New York, if you sell liquor, you may not sell food.
It is completely illegal to cross over those to see you got a church and state situation drizzly has to navigate it all. So, Jack, what's the takeaway for our buddies over at Drizzly to be a successful platform, drizzly has to nurture both sides of itself. Snackers. Every platform has two sides. Grizzly has the booze consumers and it has the booze retailers who sell on its site. The CEO of DURSLEY has confessed that they have prioritized the consumer in the past at the detriment of the sellers who are selling the booze.
For example, they like optimize your easy way to check out to buy that mescal, but not the way that the retailers can sell that message on their website. So drizzly promises to make up for it with this next. Fifty million of funding to make retailers happy and invest in their needs.
The first use of their funds raised fifty million. They're pouring it into ads. They need to get the word out to Bud's Liquor Mart that they can boost their sales if they start selling online through drizzly, they got to nurture both sides of drizzly.
Jack, can you whip up the takeaways for us to start the week? Taco Bell. Knows there's less dining happening in restaurants, so it's optimizing for takeout. It's thrown burritos where you're about to be, not where you are right now.
Second story, John Deere sales dipped as some farmers put off new tractor purchases. The problem isn't demand. It's all about uncertainty. For our third and final story, Drizzly specializes in the sticky situation of state by state laws for alcohol and cannabis delivery. But it's made its platform great for consumers.
So now it's focusing on the retailers. Now time for our Snack Fach. This one sent in a way across the pond from Norbert Zabo in lovely Budapest, Hungary. Every autumn, children are allowed to exchange acorns and chestnuts for Haribo gummy bears at the Haribo factory in Germany. Those gummy worms are fantastic. This was a wonderful tradition started by the founder of Haribo Gummy Bears, Hans Riegle, the first in the nineteen thirties. He wanted all the kids to have an opportunity to enjoy candies regardless of their economic status.
And anyone can find an acorn. We know what you're thinking. Why not? Because Hohns was actually an avid hunter, which is called a yagur in German, and he used the nuts to feed the animals on his game reserve before he would shoot them.
For every charming tale with a German component, there is a dash of unpleasant ending.
Before we go. Happy birthday to Bob Gruening from Rio Rancho, New Mexico, and Darrell D train Williams in Gainesville, Florida. We got another one from Thibeault Gator Country, David Barretto in Orlando, Florida. Happy birthday. Happy sixty. First to David Lorsch in Scottsdale, Arizona, and to Nicholas Glover in Palm Springs, California. And Michela Yamen in San Jose, California. And happy birthday, Bentzi, who lives just outside of Austin, just like everyone in a Nasdaq school.
And Alissa and Walker just got their first apartment in Rockville Center, New York. Robin Ruska just landed a new gig out and solve his big suite at Julia Hops a fellow a nickel Izabel and just got engaged. I love this one. Stephanie and Nate Salazar have a seven year anniversary in Thornton, Colorado, and a happy graduation to Jose Maria Palencia, Mexico and happy graduation to Irey out in the Philippines. Let's get more people snack in this week.
Ask your friends why. Why have you had your snacks daily? Nick and I can't wait to see it tomorrow. It's going to be great if you know. You know. This is Jack Nicholson, stock of both Chipotle and Apple, the Robinhood 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 Inc 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.