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- 🍋 Chipotle CEO Bullied By WF Analyst
🍋 Chipotle CEO Bullied By WF Analyst
Chipotle might have gotten bullied into giving away $50 million of larger portions to keep customers happy.
Together With
“Success in almost any field depends more on energy and drive than it does on intelligence. This explains why we have so many stupid leaders.” — Sloan Wilson
Good Morning! IPOs are back - and cold-storage leader Lineage made the biggest one since Arm yesterday. The U.S. economy grew at a faster-than-expected pace last quarter, but stocks struggled to keep the mid-day rally going. Blackstone is betting big on private credit. CrowdStrike losses might be the biggest test yet for cybersecurity insurance. Plus the salary needed to buy a home in 50 U.S. cities and 3 essential public speaking skills every leader needs.
Attention private equity professionals: You can go from CIM to an LBO model in less than 5 mins with Mosaic. It’s already used by funds like CVC and Warburg Pincus, get a demo here.
SQUEEZ OF THE DAY
Chipotle CEO Bullied By WF Analyst
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It turns out that Chipotle might have gotten bullied into giving away $50 million of larger portions to keep customers happy. And it’s all thanks to that Wells Fargo analyst who compared dozens of bowl sizes across the city, or the TikTokers who complained of shrinking serving sizes.
When Chipotle’s CEO spoke to shareholders this week, he addressed the portion control rumors. And he said that they are reemphasizing portion sizes and making sure all guests are getting an adequate amount of food. In short, they’re making a point to hook us all up with more food.
It’s a far cry from even last month - when Niccol denied the smaller-portion rumors and just told customers they could always just ask for more pico or rice by just giving a passive-aggressive nod.
If you’ve been going to Chipotle since before Covid, then you probably agree the portions have gotten smaller. But while perhaps anecdotal - Chipotle realizes that generous portions being part of the brand matters - and brand equity might be worth far more than the $50 million in costs Chipotle is expected to incur by providing larger portions.
Takeaway: Shrinkflation is real - from the smaller portions you might get in a box of cereal or bag of chips. And Chipotle was really trying to pin the blame on about 10% of stores that weren’t meeting the mark. And it goes to show - TikTokers bullying large companies into giving away larger portions or more food might just work in 2024.
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HEADLINES
Top Reads
Lineage’s shares jump almost 4% in biggest IPO since Arm (YF)
The economic slowdown that wasn't (Axios)
US economy grows at faster-than-expected pace in second quarter (YF)
Southwest Airlines will get rid of open seating (CNBC)
Why more U.S. adults are choosing not to have kids (Axios)
The salary needed to buy a home in 50 U.S. cities (VC)
CrowdStrike losses may be biggest test yet of cybersecurity insurance (CNBC)
Blackstone bets on growth in private credit (YF)
Barclays reaps hedge fund riches in battle of the prime brokers (Reuters)
Elon Musk thinks there's one real reason to own Tesla stock (YF)
CAPITAL PULSE
Markets Rundown
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/671a880d-196c-46d6-aa7f-ca107fc225d9/master_index.pptx__4_.png?t=1721951495)
S&P 500, Nasdaq close lower Thursday as tech comeback attempt falters.
Movers & Shakers
(+) Viking Therapeutics ($VKTX) +28% after the drugmaker moved its weight loss injection to late-stage trial.
(+) ServiceNow ($NOW) +13% after strong earnings thanks to AI hype.
(–) Lululemon ($LULU) -9% after a downgrade by Citi.
Private Dealmaking
T-Mobile will spend $4.9 billion to buy Metronet in a joint venture with KKR
NYCB will sell its mortgage servicing unit for $1.4 billion
Chainguard, an open-source security startup, raised $140 million
Myrta, a warehouse robotics startup, rasied $78 million
Exottica, an online vacation package seller, raised $66 million
Pearl, a dental diagnosis startup, raised $58 million
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BOOK OF THE DAY
Crypto Confidential
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/fc05fb8d-33ca-4242-9f3f-7707afcd6248/Screenshot_2024-07-26_at_12.48.48_AM.png?t=1721980876)
Nat Eliason had six months to make as much money as possible before his first child was born. So, he turned to where countless others did in 2021: Crypto.
Within a year, he'd made millions writing code holding hundreds of millions of dollars of other people's money. He'd been hacked. He'd sold a picture of a monkey for two hundred grand. He'd become an influencer, speaking at conferences, and writing a weekly newsletter to tens of thousands of fans. Best of all, Nat had amassed a small fortune. But how much of this money was even real? And how many times can someone double down before they eventually lose everything?
Crypto Confidential is Nat's unfiltered, insider's account of the hyperactive, hyper-speculative, hyper-addictive, nearly unregulated, completely insane world being built on the blockchain. A behind-the-scenes exposé of the bull runs and breakdowns, revealing exactly how the crypto-sausage gets made. A story of getting rich, going broke, scamming and getting scammed— and how we can all be more educated participants during the inevitable next bull run.
“Crypto Confidential is the perfect way to understand the culture of the crypto craze.”
DAILY VISUAL
Consensus Getting a Bit More Worried
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Source: Apollo
WHAT ELSE TO READ
The Best PE, VC & M&A Newsletter
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Every month, you get insider details on the month’s top 3 deals. For this month’s edition, we cover the following deals:
Waste Management acquires Stericycle for $7.2 billion
Elliott acquires a $2 billion stake in Southwest
BlackRock acquires Preqin for ~$3 billion
Read the full edition here and subscribe to the newsletter below.
DAILY ACUMEN
Boundaries
Boundaries are not walls, they're bridges to healthy relationships and a fulfilling life. They're not about keeping others out, but about defining what's okay and what's not okay.
Where in your life do you need clearer boundaries?
Think of boundaries as personal property lines.
They define where you end and others begin.
They protect your time, energy, and values. Learn to say no without guilt. Communicate your needs clearly. Respect others' boundaries as you want yours respected.
Remember, "No" is a complete sentence.
ENLIGHTENMENT
Short Squeez Picks
3 essential public speaking skills every leader needs
The No. 1 country where expats are happy with their careers
7 signs you will be successful in life, according to psychology
The dark side of workplace recognition
6 ways to bring strategy into your work every day
MEME-A-PALOOZA
Memes of the Day
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