SHARKNINJA SPIN (SN)
We are hosting a Consumer Staples Black Book on Wednesday, July 19th. JS Global (SEHK:16891) has announced plans to spin off 100% of SharkNinja, a household products company based in the U.S. & EU. JS Global shareholders will receive one share of Shark Ninja for every 25 shares held in the company as of the record date of July 4, 2023. SharkNinja is anticipated to trade under the ticker SN on the New York Stock Exchange by the end of the month. SharkNinja will continue to focus on the North American and European markets while JS Global will remain focused on the SharkNinja APAC region and Joyoung segment. The two companies will continue to cooperate on product development, R&D, engineering, and supply chain management. The company is splitting to enhance growth in both regions, not for balance sheet reasons.
SharkNinja's current CEO & President, Mark Barrocas, has been with the company since 2008 when it predominantly sold vacuum machines. Revenue has grown at a 26% CAGR between 2018 through 2022 to $3.7B. Today, the company operates in 26 markets and has expanded into 27 sub-categories. The Shark brand, which has a focus on household cleaning supplies, operates in 11 total sub-categories and had $2B in sales in 2022. Shark was the number 1 selling vacuum brand in the U.S. for the past four years. The Ninja brand, which has a focus on household kitchen appliances, operates in 16 total sub-categories and had $1.7B in sales in 2022. Ninja was the number 1 small kitchen appliance brand in the U.S. for the past three years. During our presentation, we will outline the company's addressable market and positioning, competitive environment, future opportunities, findings from our model, innovation history, and much more.
Event Details
Date & Time: Wednesday, July 19th, @ 2 PM ET
Webcast & Slides: CLICK HERE
DNUT
Krispy Kreme (DNUT) announced partnering with M&M'S candy for the first time in the U.S. The partnership will create four new doughnuts to give consumers a new way to experience DNUTs for a limited-time test. Beginning Monday, DNUT M&M'S doughnuts are available in-shop and for pickup or delivery via Krispy Kreme's app and website. The specialty dozen contains four Chocolate Iced Doughnuts Topped with M&M'S, four Peanut Butter Kreme Filled Doughnuts Topped with M&M'S, and four Original Glazed doughnuts. Regular-sized doughnuts also are available individually and as a specialty three-pack. The Mini Chocolate Iced Doughnut Topped with M&M'S is available in an assorted box of 16. The Krispy Kreme 6-pack featuring the Chocolate Iced Doughnut Topped with M&M'S will also be delivered fresh daily to select grocery stores, including at some local Walmart, Kroger, Food Lion, Publix, Stater Brothers, Wakefern, and more.
WING
WIING is a SHORT bias. 2Q23 is the last quarter of easy comp comparisons [June 2022 Company SSS (-4.9%) and System (-3.3%)], and then we see things get more challenging in 2H23. The stock reflects the SSS acceleration when trading at 44x 2024 NTM EV/EBITDA. In June 2022, when comps were negative, the stock traded at 22x NTM EV/EBITDA. Lots of downside when things inevitably slow.
One of the drivers to the accelerated SSS has been a strong consumer value proposition and the company is not letting up. Wingstop is offering a meal option for two people, introducing the new Chicken Sandwich Meal for two at participating locations. Priced at $15.99, each Chicken Sandwich Meal for Two includes two chicken sandwiches, a large order of seasoned fries, two 20-ounce drinks, and two dips. Purchased separately, the total cost of all these items would be around $25.34, so you’re saving over $9 off the regular menu price. The Wingstop Chicken Sandwich features a crispy-fried, juicy chicken breast fillet sauced in your choice of flavor and topped with pickles on a buttery toasted bun. The offer is valid for pickup or delivery orders placed online at Wingstop.com or through the Wingstop app at participating locations nationwide for a limited time while supplies last.
