🍔 McDonald’s Cardi B(eef)

…and Eli Lilly slashes insulin prices (and others could follow) [Disclosures](   McD’s announced a Cardi B and Offset promo (Jeff Kravitz/Getty Images)   Yesterday’s Market Moves   Dow Jones 32,662 (+0.02%) S&P 500 3,951 (-0.47%) Nasdaq 11,379 (-0.66%) Bitcoin $23,531 (+1.71%) Dow Jones 32,662 (+0.02%) S&P 500 3,951 (-0.47%) Nasdaq 11,379 (-0.66%) Bitcoin $23,531 (+1.71%) Hey Snackers, Gotta dream ’em all? Pokémon [showed off]( its latest game, "Pokémon Sleep," which looks like a gamified sleep tracker. Yawn. The S&P 500 and Nasdaq dipped yesterday to kick off the new month, while the 10-year Treasury yield briefly topped 4% for the first time since November. Saucy McDonald's Cardi B promo sparks beef with franchise owners, highlighting their saucy relationship Cardi B likes it like that… but [McDonald]( franchisees aren't lovin' it. The fast-food fave announced a new combo meal last month highlighting the date-night order of rappers Cardi B and Offset. Picture: a Quarter Pounder with cheese, a cheeseburger, fries, and apple pie. But some McDonald’s franchise owners are [reportedly]( refusing to promote it, worried the couple's R-rated lyrics could tarnish the brand's family-friendly golden arches. The chain's own policies might back them up: - Burger bible: The "Golden Arches Code" of corporate policies forbids music partnerships involving offensive language. But Cardi B songs often get bleeped. - Celeb-centric: McDonald’s “famous orders” partnerships with artists like BTS, J Balvin, Travis Scott, and Mariah Carey have been major [sales drivers](. A beef biz's beating heart… 95% of McDonald’s locations are franchised, aka: owned by individuals. While they benefit from hitching their wagon to established brands, they pay licensing fees and often fork over a % of earnings back to HQ. It’s not the first time McD’s franchisees have pushed back against corporate: last year 87% of McD’s owners said they disapproved of the CEO. And in 2020 franchisees were in an uproar after corporate [ended]( the $300/month Happy Meal toy rebate. THE TAKEAWAY Franchising is a two-way street… Heavy franchising has helped brands like McDonald's, Subway, [Taco Bell]( KFC, and [Chipotle]( spread across the US. But it's more than just fast food: nearly 300 industries (like: beauty salons, motels) offer franchising. It can be a symbiotic relationship, but when disagreements arise, corporate can’t afford to ignore the people powering their profits. Meds Pharma giant Eli Lilly is slashing insulin prices 70%, which could pressure its rivals Refill relief… [Eli Lilly]( is [lowering]( the price of its best-selling insulin drugs, which could ease the financial burden for millions of people with diabetes. Yesterday, Eli Lilly said it would cut prices of its name-brand Humalog and Humulin insulins by 70% this fall. The company added that it would cut its generic-insulin prices by a third. - It’s a big deal because Eli Lilly and rivals [Novo Nordisk]( and [Sanofi]( supply 90% of the world’s insulin — and 100% of the US’s (#three-opoly). - Big Pharma companies can charge as much as $200/dose of insulin, though it typically costs less than 10 bucks to produce. Last year Eli Lilly earned $3B+ in insulin sales. The discount push… Of the 37M Americans who have diabetes, nearly a quarter use insulin. But lofty prices have led many to ration or skip doses. While insured folks typically pay less than $35/month for insulin, those without coverage face an average of $900/month. Now retailers and governments are scrambling to fill the affordability gap: - Governments: Dozens of states have already implemented out-of-pocket caps on insulin spend, and President Biden wants $35/month to become the national norm. - Companies: In 2021 [Walmart]( started selling a lower-priced version of analog insulin for people without insurance. In December, Mark Cuban’s discounted Cost Plus biz said it would consider testing a three-month supply of insulin for $170. THE TAKEAWAY The first mover can move the rest… especially in a three-opoly like the insulin market. If Eli Lilly’s market share soars thanks to its price cuts, rivals may follow suit to keep customers. Biden and the American Diabetes Association applauded Eli Lilly’s move to cut costs, saying other drugmakers should do the same. Competitive prices, coupled with public pressure, could lead to more affordable medications for those in need. What else we're Snackin' - [Guac]( Instacart’s sales and profits reportedly soared last quarter (ahead of its anticipated IPO). But the grocery-delivery platform’s growth may’ve been less about avos and more about ads. - [Pop]( [AMC]( shares tumbled after the world’s largest movie-theater chain said that quarterly revenue fell 15% from the previous year. The box office hasn’t rebounded to prepandemic levels. - [Rack]( [Kohl’s]( unpacked a surprisingly large loss and declining sales for its holiday quarter. The department-store giant also gave a weak outlook as consumers pulled back on discretionary spend. - [Pint]( More poutine, less Pilsner: beer and wine sales in Canada fell to an all-time low. US alcohol sales also ticked down last year, a bad sign for booze biggies like Bud maker [AB InBev]( and [Molson Coors](. - [Biscoff]( [Delta]( pilots agreed to a new contract that features 34% raises over four years. [United]( [Southwest]( and [American]( are still negotiating with pilot unions, who are seeking higher pay as travel booms. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day Vanilla flavoring comes from the pod of an orchid [Read more]( Thursday - Earnings expected from AB InBev, Victoria’s Secret, Best Buy, Costco, Six Flags, Dell, Nordstrom, TD Bank, Kroger, Hormel, Utz Brands, Broadcom, and Macy’s Authors of this Snacks own shares: of AB InBev, Delta, Molson Coors, Walmart, and Yum Brands ID: 2767238 Robinhood Snacks newsletters reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are for informational purposes only, and are not a recommendation of an investment strategy or to buy or sell any security, digital asset (cryptocurrency, etc) in any account. 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