Growth is Slowing - DASH
Reality sets in for DASH, the business is not scaling, and the company has never experienced a recession.
DoorDash Inc. is laying off about 1,250 people to rein in expenses, according to a company memo from Chief Executive Officer Tony Xu viewed by Bloomberg. "While our business continues to grow fast, given how quickly we hired, our operating expenses - if left unabated - would continue to outgrow our revenue," Xu wrote in a letter to staff on Wednesday. Bloomberg
As a reminder of how out of touch the CEO was when asked about a potential slowdown in the business on the last earnings call: "But I think the way that we've been thinking about things is really looking at it from a historical, current day and future perspective. Historically, in the last 60 years in that timeframe, only two of the last 60 years have we seen a decline in food spending in the US, and that's specifically in the restaurant and grocery industries. And so, I think even though all of us are wondering how to quantify the macro headwinds, food is the most resilient category. I think historically that's shown to be true."
Now he is saying He said, "that amid the tougher macro backdrop confronting the company presently, these expenses must be reduced."
What has changed in the past 27 days?
CMG
Chipotle is going to start selling "Mystery Boxes" as a form of discounting, but not discounting its food directly. Is this a traffic driver or keeping the PR team busy?
Chipotle Goods Mystery Boxes are available in two versions:
- Small Burrito Box: $30 ($60 value) – three to five items
- Large Burrito Box: $50 ($100 value) – four to eight items
Some ordered in the first 48 hours could feature stainless steel $500 Chipotle gift cards or "Cilantro soap."
