✈️ Airlines' summer squeeze |
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(Jabin Botsford/Getty Images) |
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| Ticonderoga's back, baby: the TikTok generation of elementary schoolers is collecting and trading No. 2 pencils like they're Pokémon cards. The kids are all write. US consumer prices came in hotter than expected for a third month straight. Investors got the inflation ick and stocks fell yesterday. Hot rate-cut summer may not happen: traders are now pricing in just two cuts this year, starting in September instead of June. ICYMI: Sherwood Media (psst, that's us) launched Sherwood News, a super-scrollable site for fresh biz stories. Swing by for Snacks coverage and a trove of other gems (pop quiz, anyone?). |
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Catch flights, not feelings… Delta flew past Wall Street's estimates yesterday with stellar first-quarter earnings. The Biscoff icon said it swung to a quarterly profit while revenue jumped 6% to $12.6B — a Q1 record. FYI: winter is typically the least profitable season for US airlines. Delta benefited as its lucrative business-travel category rebounded and fliers kept splurging on premium seats. |
- Passport stamped: Bookings for Delta's international flights continued to boom with revenue for the category jumping 12% from last year.
- Bags packed: Delta forecast record spring and summer revenue as warm-weather travel kicks off — and said it's already notched its 11 highest sales days ever this year.
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Made it outta the group chat… Postpandemic revenge travel has turned into YOLO travel as consumers keep prioritizing getaways over material goods. Worldwide, the International Air Transport Association expects a record 4.7B people will fly this year, which would beat a high of 4.5B in 2019. In the US, inflation isn't curbing vacations: nearly half of Americans in a recent survey said they planned to take a trip requiring a flight or hotel this summer. In another survey, 40% of respondents said they expect to travel more this year than last. |
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Brace for a summer squeeze… As peak travel szn nears, airlines could be caught in the middle seat as soaring demand meets limited capacity. American carriers are expected to receive 32% fewer aircraft than planned (blame Boeing delays). Meanwhile, seat capacity is still down from prepandemic. US airfares, down 7% from a year ago, could pick back up if stronger demand + lower capacity leads airlines to raise prices. |
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Did you know It takes 10,000 iPhone batteries worth of Lithium to make 1 EV? With over 350 million EVs projected to be sold globally by 2030 demand for Li is projected to soar and current extraction methods, won't be able to meet the demand. So when EnergyX revealed that their technology could extract 300% more lithium than traditional methods, investors everywhere took note. They've inked deals with top lithium producers including POSCO who is building a 100k ton/year plant, secured a $50M strategic investment from GM, and won a $5M DOE grant. Most recently, they acquired a 90,000-acre mining asset with ~5.5M tons of lithium. Now EnergyX is accepting shareholders for a limited time. This is a unique opportunity to invest on the ground floor as the company is set to unlock a massive lithium supply. Learn more about becoming an EnergyX shareholder here.* |
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Did you know It takes 10,000 iPhone batteries worth of Lithium to make 1 EV? With over 350 million EVs projected to be sold globally by 2030 demand for Li is projected to soar and current extraction methods, won't be able to meet the demand. So when EnergyX revealed that their technology could extract 300% more lithium than traditional methods, investors everywhere took note. They've inked deals with top lithium producers including POSCO who is building a 100k ton/year plant, secured a $50M strategic investment from GM, and won a $5M DOE grant. Most recently, they acquired a 90,000-acre mining asset with ~5.5M tons of lithium. Now, EnergyX is accepting shareholders for a limited time. This is a unique opportunity to invest on the ground floor as the company is set to unlock a massive lithium supply. Learn more about becoming an EnergyX shareholder here.* |
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Extra-cheesy pizza… with a Capri Sun. A watchdog group reported that Lunchables sold in K-12 cafeterias contain high levels of sodium, along with lead, cadmium, and chemicals known as phthalates. Consumer Reports is petitioning regulators to remove the Kraft Heinz-owned compartmentalized meals, which were introduced in 30M students' lunch lines last year. |
- Off shelf: Cafeteria Lunchables are different from regular retail ones. Kraft developed two school versions of its packaged meals that meet USDA standards. It says the turkey-and-cheddar and extra-cheesy-pizza packs have less saturated fat and more protein and whole grains than grocery-store versions.
- Divided: Critics argue the reformulated meals are still too processed for the lunch line, but pro-Lunchables parents say kids like having familiar options.
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Pizza sauce and fries count as veggies… according to US school-nutrition regulators. The push for healthier school lunches has ramped up over the past decade, with former first lady Michelle Obama campaigning for rules that cut calories and saturated fats and boosted whole grains, fruits, and "veggies." Brands don't want to leave the lunch line, and Kraft isn't the only one adapting to meet the higher standards. Domino's has a "Smart Slice" pizza option (think: whole-grain crust, light mozzarella) that's served in 900+ school districts. |
- Gen Alpha: Kraft says schools are a $25B growth opportunity. Read: a virtually free marketing opp to reach 30M kids who will grow up to be spending adults.
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Customer acquisition starts early… Adults have shown they have a soft spot for the products they grew up with. Sales of J.M. Smucker's Uncrustables have soared in recent years (swiftly approaching $1B/year) as millennials snatch up the circular PB&Js, and General Mills brought back Dunkaroos in 2020 for nostalgic kidults. At the same time, companies spend billions on advertising to kids, especially on YouTube. |
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The next big thing in coffee ain't coffee |
Sherwood headed to Coffee Fest New York to hear about the biggest trends in the industry. 75% of Americans drink a cup of joe daily, but there's a new barista beverage that's thriving: "refreshers." Since Starbucks introduced the Very Berry Hibiscus refresher in 2012, iced non-coffee bevs have taken off at java joints big and small (think: shaken iced teas, fruity refreshers, and coconut-milk-based #ombre drinks). It's a refreshing way to keep customers ordering after the morning caffeine rush. Read more at Sherwood. |
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A direct-to-consumer casket company is trying to upend the funeral industry |
The "Warby Parker for caskets" is shaking up the death biz. Josh Siegel, cofounder of D2C casket company Titan Caskets, told Sherwood he was uncomfortable with the way funeral homes would mark up the caskets he'd sold to them. So he started selling caskets directly on Amazon. Read more at Sherwood to learn about predatory pricing plans at funeral homes, undercover FTC shoppers, and whether Titan will ever collab with Supreme. |
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- Airbust: Airbus's deliveries rose 12% in the first quarter to 142 jets. Boeing, which is under intense scrutiny after a string of safety incidents, said its commercial deliveries dropped 36% to just 83 planes.
- W: For the first time, the NCAA women's-basketball tourney final attracted more viewers than the men's. Still, the women's final got 99% less in TV money.
- Premium: Car-insurance prices are up 22% from last year, and 45% since pre-Covid 2019. Insurers are trying to recoup lost profits, blaming hikes on higher costs for replacement parts during the pandemic.
- Dude: The creators of YouTube channel "Dude Perfect" (picture: absurd trick-shot challenges) just scored a $100M+ private-equity investment. Investors are increasingly pumping $$ into social-content creators.
- UniSue: Uniswap's CEO said his decentralized exchange got a Wells Notice, suggesting the SEC's prepping a suit. The issue isn't public, but the regulator's previously accused crypto cos of unregistered sales of securities.
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- Masters Tournament tees off
- Earnings expected from CarMax and Constellation Brands
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Authors of this Snacks own uniswap and shares of: Alphabet, Amazon, Delta, and Starbucks |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more |
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