WEBVTT - Wingstop Expanding Globally, Aims To Be A Top Ten Brand: CEO 0:00:05.800 --> 0:00:08.720 Welcome to the Bloomberg P and L Podcast. I'm pim Fox. 0:00:08.760 --> 0:00:11.520 Along with my co host Lisa Abramowitz. Each day we 0:00:11.640 --> 0:00:15.120 bring you the most important, noteworthy, and useful interviews for 0:00:15.200 --> 0:00:17.840 you and your money, whether you're at the grocery store 0:00:17.960 --> 0:00:20.720 or the trading floor. Find the Bloomberg P M L 0:00:20.840 --> 0:00:32.920 Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot Com. Well, 0:00:32.960 --> 0:00:35.320 if you wanted like to know how many chicken wings 0:00:35.320 --> 0:00:37.720 are going to be consumed during the Super Bowl weekend, 0:00:37.720 --> 0:00:41.199 look no further than the National Chicken Council's annual report. 0:00:41.479 --> 0:00:45.880 Americans are set to eat one point three three billion 0:00:46.000 --> 0:00:51.600 chicken wings and is actually up to from these numbers, 0:00:51.600 --> 0:00:55.360 of course, for twenties seventeen. One point three billion chicken 0:00:55.360 --> 0:00:57.240 wings is a lot of chicken. In Here to tell 0:00:57.320 --> 0:01:00.280 us how it all happens is Charlie Morrison is the 0:01:00.320 --> 0:01:03.080 chairman and the chief executive of wing Stop and also 0:01:03.160 --> 0:01:06.400 joining us here in studio Stacy Peterson, the chief experience 0:01:06.440 --> 0:01:09.759 officer for Wingstop, and they are in our New York 0:01:09.840 --> 0:01:14.000 studios coming from Dallas. All right, Charlie, one point three 0:01:14.440 --> 0:01:19.840 billion chicken wings that it's a little hard to comprehend, right, Now, 0:01:19.880 --> 0:01:22.120 how did you get into this? You, I know have 0:01:22.240 --> 0:01:26.360 done stints at Boston Market. Pizza was also in your past. 0:01:26.760 --> 0:01:29.800 How did you combine all of this to bring it 0:01:29.840 --> 0:01:34.720 to Wingstop? Well, I was honored with the opportunity to 0:01:34.840 --> 0:01:37.759 lead this brand about six years ago when I started 0:01:37.760 --> 0:01:39.479 with wing Stop, and it's a brand that's been around 0:01:39.480 --> 0:01:42.080 since the mid nineties, was founded in the Dallas Fort 0:01:42.080 --> 0:01:46.520 Worth area where we're headquartered, and we realized what a 0:01:46.560 --> 0:01:48.320 great opportunity we had in front of us. We are 0:01:48.480 --> 0:01:51.920 all about this. Capital came in this. This is right 0:01:51.960 --> 0:01:55.360 when Capital came in and then you joined the because 0:01:55.400 --> 0:01:57.360 they thought you would be good to do this. Yes, 0:01:57.440 --> 0:01:59.600 well that's that they thought, and so far, so good. 0:02:00.200 --> 0:02:02.480 Uh yeah. We so wings as a center of the 0:02:02.480 --> 0:02:05.600 plate item where something was something that was really not 0:02:05.920 --> 0:02:09.000 thought of many years ago. But now you look at 0:02:09.040 --> 0:02:10.880 the success of this brand and the fact that people 0:02:10.919 --> 0:02:14.040 are passionate about wings. It is great for the Super Bowl, 0:02:14.120 --> 0:02:17.040 will sell probably fourteen to fifteen million wings just on 0:02:17.120 --> 0:02:20.440 that day alone. But really it's an occasion item for 0:02:20.480 --> 0:02:24.480 anybody for any eating occasion. What okay, you gave me 0:02:24.520 --> 0:02:27.519 the number of of wings. Can you put that into 0:02:27.639 --> 0:02:30.880 some context in terms of compared to a normal weekend 0:02:31.120 --> 0:02:34.640 or other holidays, that may make that more popular. Sure, 0:02:34.760 --> 0:02:37.480 in some cases we'll do as much business on that 0:02:37.600 --> 0:02:40.000 day as we might do in an entire week on 0:02:40.080 --> 0:02:42.519 average for the chain. So it is our biggest day 0:02:42.520 --> 0:02:44.880 of the year, one of the very big days, uh 0:02:44.919 --> 0:02:47.880 for Wingstop. Wings are the number one consumed item for 0:02:47.919 --> 0:02:51.239 the Super Bowl, and UH we're one of the largest 0:02:51.320 --> 0:02:53.880 chains out there that's providing access to those for our 0:02:53.960 --> 0:02:57.200 for our fans. Stacy Peterson, come in for just a 0:02:57.200 --> 0:03:00.400 second and tell us about the uh the new ways 0:03:00.560 --> 0:03:03.440 in which people can consume their food. One of them 0:03:03.680 --> 0:03:08.720 is using the Alexa voice ordering system. Tell us about 0:03:08.800 --> 0:03:11.960 that venture and how you put that together. That's right. 0:03:12.000 --> 0:03:14.280 Digital ordering has been a focus for us, and last 0:03:14.320 --> 0:03:17.320 year we really tried to extend the convenience to our guests. 0:03:17.320 --> 0:03:20.520 So instead of requiring them to download our app, which 0:03:20.639 --> 0:03:23.520 they can do, we decided to bring ordering to them. 0:03:23.560 --> 0:03:27.520 So if they're on Facebook, Messenger, Twitter, Messenger, Alexa, even 0:03:27.520 --> 0:03:30.960 now GM, on Star Marketplace, they can order ring wings 0:03:31.000 --> 0:03:33.800 directly from the apps or platforms that they choose to 0:03:33.919 --> 0:03:36.440 be on. Okay, but I'm just curious, was there a 0:03:37.440 --> 0:03:39.880 just a little insight into the negotiation, because you know, 0:03:39.920 --> 0:03:41.880 people may be listening and thinking, gee, you know, I 0:03:41.960 --> 0:03:44.480 have a product I'd like to figure out how to 0:03:44.920 --> 0:03:49.640 get included in the Alexa artificial intelligence world. What were 0:03:49.680 --> 0:03:52.720 those conversations like, what were some of the concerns and 0:03:52.760 --> 0:03:56.040 what were some of the challenges. Well, for us, integration 0:03:56.080 --> 0:03:58.360 as a challenge. We want our franchise operators when an 0:03:58.440 --> 0:04:01.320 order comes through any digital channel to look the same, 0:04:01.400 --> 0:04:03.960 feel the same. We don't want them to care where 0:04:03.960 --> 0:04:06.920 it came from. And so integrating that into our point 0:04:06.960 --> 0:04:10.480 of sale where at the restaurant they have a consistent process, 0:04:10.600 --> 0:04:13.880 was really key to us unleashing all of these platforms. 0:04:14.000 --> 0:04:17.279 And is the data that is put together and and 0:04:17.520 --> 0:04:20.080 stored about the customer? I mean, is that data the 0:04:20.160 --> 0:04:24.240 thing can be used for ordering U you know, ordering 0:04:24.279 --> 0:04:26.839 and as well as supply chain operation. That's right, there's 0:04:26.839 --> 0:04:29.799 a lot that we can learn from our customers um 0:04:30.000 --> 0:04:32.320 and understand more of their behavior so that we can 0:04:32.360 --> 0:04:35.960 be more relevant to them. All right, Charlie, the menu 0:04:36.240 --> 0:04:39.120 at the wing stop. I understand that many analysts say 0:04:39.160 --> 0:04:42.920 the fact that it's simple is positive for the company. 0:04:42.960 --> 0:04:45.000 Can you speak to that. I think that's a testament 0:04:45.000 --> 0:04:47.839 to any great restaurant concept is to keep it simple, 0:04:48.000 --> 0:04:50.920 especially in today's focused environment where you have menus that 0:04:50.960 --> 0:04:54.360 are focused on certain products. That's what we love about Wingstop. 0:04:54.440 --> 0:04:58.240 We have chicken wings, fries, and sides that makes up 0:04:59.040 --> 0:05:03.280 what we sell. Since our founding in we started with 0:05:03.320 --> 0:05:05.880 eight flavors and added three over the years. We we 0:05:05.960 --> 0:05:09.840 really innovate, as Stacy talked about, through technology more so 0:05:09.880 --> 0:05:12.080 than we do through flavors and products, and we think 0:05:12.120 --> 0:05:14.320 that's the way restaurants are gonna be well positioned into 0:05:14.320 --> 0:05:17.640 the future. You've also got an initiative outside the United 0:05:17.640 --> 0:05:20.680 States franchising there. Tell us about that. Yeah, we operate 0:05:20.720 --> 0:05:23.719 in nine countries around the world today with signed agreements 0:05:23.720 --> 0:05:27.160 for thirteen total countries, a little over one hundred restaurants 0:05:27.200 --> 0:05:30.560 and growing very rapidly. We believe that this will position 0:05:30.600 --> 0:05:33.520 this brand to be a top ten global brand ultimately 0:05:34.240 --> 0:05:37.400 one day in the future. Because chicken and chicken wings 0:05:37.440 --> 0:05:40.479 are the most consumed protein all around the world. What 0:05:40.520 --> 0:05:43.440 about the cost of the prices, They're pretty comparable now, 0:05:43.440 --> 0:05:45.560 they're pretty comparable. Last year was a tough year in 0:05:45.560 --> 0:05:48.719 the US for chicken wings, the commodity spiked, but outside 0:05:48.760 --> 0:05:52.200 the US very similar economics to what we see here. 0:05:52.320 --> 0:05:54.920 Are we going to get kiosks in more and more 0:05:54.920 --> 0:06:00.760 Wingstop restaurant location? Stacy, Quite possible. We would love to 0:06:01.120 --> 0:06:04.680 um expedite and automate the pickup experience, so along with Chios, 0:06:04.800 --> 0:06:07.279 we could envision a day where you order digitally, You 0:06:07.320 --> 0:06:09.799 get a message sent to you that your order is ready, 0:06:09.880 --> 0:06:11.800 and you pick it up from a locker, get a 0:06:11.839 --> 0:06:14.680 code you scan in, you lock our opens, you take 0:06:14.720 --> 0:06:16.599 your food and go. So we'd like to continue that 0:06:16.680 --> 0:06:19.600 digital experience inside the restaurant. Thanks very much for being 0:06:19.680 --> 0:06:22.680 with us. Stacy Peterson is a chief experience officer and 0:06:22.760 --> 0:06:25.479 Charlie Morrison is the chairman and the chief executive of 0:06:25.560 --> 0:06:42.039 Wingstop Oil. Oil prices down by about a half a 0:06:42.080 --> 0:06:44.599 percent right now on the NI Max w t I 0:06:44.720 --> 0:06:47.799 trades at sixty four dollars and thirteen cents of barrel. 0:06:47.960 --> 0:06:50.039 You're to tell us more about the world of energy. 0:06:50.120 --> 0:06:53.680 Is Javier Blass, our chief energy correspondent for Bloomberg Intelligence, 0:06:53.720 --> 0:06:56.679 and he joins us from London, and you can follow 0:06:56.760 --> 0:07:01.320 Javier on Twitter at Javier Blass two. All right, Javier 0:07:01.400 --> 0:07:03.640 Blast too. Before we get to oil, I just want 0:07:03.680 --> 0:07:06.520 you to maybe speak a little bit about a photo that, 0:07:06.680 --> 0:07:10.640 courtesy of your handiwork, I was able to see on 0:07:10.680 --> 0:07:14.880 Twitter having to do with Davos and the crowd that 0:07:15.120 --> 0:07:18.880 was looking to get into the main hall where President 0:07:18.920 --> 0:07:22.400 Donald Trump eventually gave his speech. Can you just tell 0:07:22.480 --> 0:07:24.840 me a little bit about that. I was hoping that 0:07:24.880 --> 0:07:27.480 you have forgotten about it, not at all. I thought 0:07:27.480 --> 0:07:30.920 that was really something because the crush of people to 0:07:31.000 --> 0:07:33.800 get in, as you described it, I think is sort 0:07:33.800 --> 0:07:37.200 of like a rock concert. Yeah, it was about an 0:07:37.200 --> 0:07:39.600 hour before President Trump was delivering in this speech that 0:07:39.840 --> 0:07:43.920 the word gonna before in double Switzerland. And I have 0:07:44.040 --> 0:07:46.400 been in many doubles meetings, and I have never seen 0:07:46.480 --> 0:07:49.640 that lobby area in front of the Congress Hall where 0:07:49.640 --> 0:07:52.880 all the biggest speeches happened. Uh so pack an hour 0:07:53.160 --> 0:07:57.040 before I speech, and I have seen people like Macron Mercal, 0:07:58.320 --> 0:08:00.360 you know, you don't see that. And and it kind 0:08:00.400 --> 0:08:04.320 of felt almost like a few year backs, as would 0:08:04.360 --> 0:08:07.640 say a couple of decades back, being a teenager and 0:08:07.760 --> 0:08:09.760 going to a rock concert, and you know, all the 0:08:09.760 --> 0:08:14.400 teenagers just being uh together, crashing into the doors. And 0:08:14.440 --> 0:08:16.920 so I tweeted that, you know, it was quite extraordinary 0:08:17.000 --> 0:08:20.000 and I felt like um teenagers going into a concert. 0:08:20.000 --> 0:08:22.960 But the main difference is were CEOs and billionaires sort 0:08:22.960 --> 0:08:25.800 of the most powerful men and woman on the planet 0:08:25.800 --> 0:08:27.400 in the in the world of business. I'm fine, and 0:08:27.520 --> 0:08:30.840 so that was quite something. And to my surprise, I 0:08:30.880 --> 0:08:34.640 was actually sleeping overnight the President trauma. I supposed it 0:08:34.679 --> 0:08:39.000 was on Air Force one. So the tweets somehow and retweeted, 0:08:39.320 --> 0:08:42.719 and then I wake up with about twenty five notifications 0:08:42.720 --> 0:08:45.920 on my Twitter timeline. To my shock, Well, all right, 0:08:46.000 --> 0:08:49.200 so that that you become a sort of a Twitter 0:08:49.520 --> 0:08:53.599 poster a child. You know, every utterance is going to 0:08:53.720 --> 0:08:56.200 be picked over. So be careful here when we talk 0:08:56.280 --> 0:08:58.560 about energy. And maybe we can kind of link this 0:08:58.679 --> 0:09:03.040 to a President Arnold Trump, because one of his h signature, 0:09:03.600 --> 0:09:08.760 uh sort of perspectives is to allow more drilling in 0:09:08.800 --> 0:09:14.200 the Arctic National Wildlife Refuge, to push more drilling off 0:09:14.240 --> 0:09:17.199 the coast of the United States, both the East and 0:09:17.480 --> 0:09:21.000 the West coast. And also he's been a big cheerleader 0:09:21.080 --> 0:09:25.800 for domestic oil production. What is the change in US 0:09:25.840 --> 0:09:29.640 oil production doing to global investments? What what we have 0:09:29.679 --> 0:09:32.800 seen is the US production almost at ten million bars 0:09:32.840 --> 0:09:36.720 a day. That's the highest since nineteen seventy. Actually, US 0:09:36.800 --> 0:09:39.400 production is just within a whisker of that level. It 0:09:39.559 --> 0:09:43.000 was put today by the Energy Information Administration, that's the 0:09:43.320 --> 0:09:47.160 statistical arm of the Department of Energy at nine point 0:09:47.400 --> 0:09:50.240 nine two million bars a day. So it's just gonna 0:09:50.240 --> 0:09:52.680 be ten million bars a day within the next two 0:09:52.760 --> 0:09:56.240 or three weeks. And and that is what is being 0:09:56.400 --> 0:10:00.200 UH distrolled by President Trump of Energy Dominance Act. Only 0:10:00.200 --> 0:10:02.800 President Tim probably has done very little for for achieving 0:10:02.840 --> 0:10:05.679 these ten million barrels a day. The stay is deregulating 0:10:05.720 --> 0:10:07.880 the industry and is lower in taxes, but I would 0:10:07.920 --> 0:10:12.360 not have an impact until probably a few months. For now, 0:10:12.440 --> 0:10:15.720 with the taxation, probably we can see more investment, and 0:10:15.760 --> 0:10:19.080 certainly the the regulation of the sector and allowing UM 0:10:19.320 --> 0:10:22.960 drilling offshore of the United States. That's gonna takes if 0:10:23.000 --> 0:10:26.319 not DKs to increase production of the country. But certainly 0:10:26.360 --> 0:10:29.240 we have seen a big increase in UH production in 0:10:29.320 --> 0:10:31.400 the United States, and that's one of the reasons that 0:10:31.440 --> 0:10:34.680 despite all the efforts but opened by cutting production, we 0:10:34.840 --> 0:10:38.080 still see oil prices really struggling to break new ground. 0:10:38.400 --> 0:10:43.200 And we saw Bram prices that the European benchmark jumping 0:10:43.240 --> 0:10:45.959 about seventy dollars, but that was really short lived because 0:10:45.960 --> 0:10:49.000 people are starting to pay attention that while Opak is 0:10:49.000 --> 0:10:52.160 cutting production on sale, producers in Texas and elsewhere in 0:10:52.160 --> 0:10:55.080 the United States are really ramping output. All right, So 0:10:55.240 --> 0:10:57.520 what does that tell you about a forecast? Is it 0:10:57.800 --> 0:11:00.440 just difficult to predict what I mean? I'm it's always 0:11:00.440 --> 0:11:02.960 difficult to predict with the future price of anything's gonna be. 0:11:03.360 --> 0:11:06.520 But we're gonna get results from Royal Dutch Shell tomorrow 0:11:06.920 --> 0:11:10.360 and we'll also get results from Chevron and Exxon for 0:11:10.440 --> 0:11:12.280 the remainder of the week. What can you tell us 0:11:12.280 --> 0:11:14.559 about the future oil prices? Well, I think that we're 0:11:14.559 --> 0:11:16.880 going to have very good results for for the three 0:11:16.880 --> 0:11:19.840 companies that you mentioned. We have Royal Dutch Shell reporting 0:11:20.080 --> 0:11:22.680 before the opening of the market tomorrow morning here in London, 0:11:22.960 --> 0:11:26.560 and we have Excellent and Chevron doing likewise before the 0:11:26.559 --> 0:11:29.240 opening of the market in New York on Friday. Uh 0:11:29.559 --> 0:11:31.400 Q force would be a good month for all the 0:11:31.400 --> 0:11:35.000 oil companies. Prices where up. We have good production number 0:11:35.040 --> 0:11:38.040 from everyone, so I'm expecting that probably where on a 0:11:38.120 --> 0:11:42.080 quarterly basis, probably we're gonna see the strongest quarter since 0:11:42.120 --> 0:11:45.440 at least meet two thousand and fourteen in terms of 0:11:45.480 --> 0:11:48.559 oil prices. For two thousand and eighteen, clearly we're seeing 0:11:48.559 --> 0:11:52.320 a big push towards the upside from opeque production cuts 0:11:52.640 --> 0:11:55.040 led by Saudi Arabia with his cutting even more than 0:11:55.840 --> 0:11:57.880 he said that he was gonna do. But at the 0:11:57.920 --> 0:12:00.400 same time, we're gonna have a ceiling from the ushil 0:12:00.480 --> 0:12:04.040 producers which they're gonna really pump a lot more oil 0:12:04.080 --> 0:12:06.959 that probably the market was expecting only two or three 0:12:07.000 --> 0:12:09.400 or four months ago. So probably what we're gonna see 0:12:09.480 --> 0:12:12.400 prices in a in a very narrow range, probably with 0:12:12.440 --> 0:12:16.400 a sixty dollar floor because of open production cards. But 0:12:16.960 --> 0:12:19.640 any any time that we go about seventy maybe seventy 0:12:19.679 --> 0:12:22.439 five dollars for brain, we're gonna see a huge incentive 0:12:22.720 --> 0:12:25.960 for US producer producers to to to pump more, and 0:12:26.040 --> 0:12:28.679 uncertainly the price will be capped there. Thank you very 0:12:28.760 --> 0:12:30.920 much for being with us. Javier Blast is our chief 0:12:31.040 --> 0:12:35.280 energy correspondent for Bloomberg Intelligence. You can follow him on 0:12:35.320 --> 0:12:38.880 Twitter at Javier Blast two, and you can also check 0:12:38.920 --> 0:12:42.559 out his photographs from his attendance at the Dollar's World 0:12:42.679 --> 0:12:48.199 Economic form last week. Interesting photographs and some images of 0:12:48.280 --> 0:12:51.720 the excitement that was generated by the arrival and the 0:12:51.800 --> 0:13:09.960 speech of President Donald Trump. Well, if you're thinking about 0:13:10.000 --> 0:13:13.760 purchasing an automobile or a vehicle, chances are you should 0:13:13.800 --> 0:13:16.160 place a call to Scott Painter. He is the founder 0:13:16.240 --> 0:13:19.480 of Fair, but he's also the former founder of True Car, 0:13:19.559 --> 0:13:23.800 and he has a history in the automobile industry as 0:13:24.120 --> 0:13:28.000 a disruptor, and he joins us now from Santa Monica. Scott, 0:13:28.040 --> 0:13:30.160 thank you very much for being with us. Maybe just 0:13:30.200 --> 0:13:32.880 give people a little bit of your the short bio, 0:13:33.160 --> 0:13:37.560 because you've been doing this since you were in school. Well, 0:13:37.600 --> 0:13:42.280 I've definitely been focused on trying to improve the way 0:13:42.320 --> 0:13:46.240 that we all buy in Shop four and ultimately owned cars. 0:13:48.080 --> 0:13:50.960 So what we've created, it Fair, is an app that 0:13:51.000 --> 0:13:54.880 represents a totally new way to get a car. It's digital, 0:13:55.480 --> 0:13:58.200 it's all on your phone, it's completely flexible, and that 0:13:58.360 --> 0:14:01.760 customers can actually see the car they want and walk 0:14:01.800 --> 0:14:05.720 away without a commitment to a long term purchase decision 0:14:05.880 --> 0:14:09.280 or ownership contract, and it's designed to be simple. What 0:14:09.440 --> 0:14:12.240 we offer is an all in monthly payment that provides 0:14:12.320 --> 0:14:17.840 the car a warranty, roadside assistance, standard maintenance, and we 0:14:17.920 --> 0:14:21.120 even now offer month to month auto insurance. So it's 0:14:21.240 --> 0:14:23.200 designed to be sort of like an iTunes account for 0:14:23.240 --> 0:14:26.200 your car. Is it similar to a long term rental 0:14:26.360 --> 0:14:29.600 or even a short term rental for an automobile? Yeah, 0:14:29.640 --> 0:14:32.000 it's not a rental agreement, it's not a lease. It 0:14:32.120 --> 0:14:34.800 was created with a deep understanding of how both work. 0:14:35.200 --> 0:14:39.680 It is an entirely new type of contract. It's really um. 0:14:39.760 --> 0:14:45.000 It represents a new way to get access to mobility. Um. 0:14:45.040 --> 0:14:51.080 It's clear that modern customers want simplicity, savings and flexibility, alright, 0:14:51.080 --> 0:14:54.920 But having having that in mind, what can you walk 0:14:55.000 --> 0:14:58.200 us through what exactly happens? Because you mentioned that are 0:14:58.360 --> 0:15:00.720 you've got an app on your phone you'd like to 0:15:00.840 --> 0:15:04.240 drive from where you are a Santa Monica. I don't 0:15:04.240 --> 0:15:08.760 know to uh, San Diego? What happens when you pick 0:15:08.840 --> 0:15:11.480 up your phone? Sure, the way that the app works 0:15:11.560 --> 0:15:13.360 is as soon as you download the app, it does 0:15:13.480 --> 0:15:16.560 ask you to scan your driver's license because you're going 0:15:16.600 --> 0:15:19.840 to be driving our vehicle and you need to be 0:15:19.880 --> 0:15:24.400 a registered legal driver, and so we're looking to actually 0:15:24.520 --> 0:15:28.200 validate your driver's license. We're also looking for ability to repay, 0:15:28.320 --> 0:15:30.920 So unlike a car loan or at lease where you 0:15:30.920 --> 0:15:33.680 actually have to have good credit or a long payment history. 0:15:34.000 --> 0:15:36.400 As long as we can detect that you have the 0:15:36.480 --> 0:15:40.160 ability to repay or to afford the car, we go 0:15:40.200 --> 0:15:43.320 ahead and digitally link you either to your bank account 0:15:43.440 --> 0:15:46.240 or a credit card, and then you begin to subscribe 0:15:46.240 --> 0:15:49.200 effectively to that car. And so you're shopping from cars 0:15:49.200 --> 0:15:52.440 that are all for sale at local dealers, and we're 0:15:52.480 --> 0:15:55.240 simply a better way to get that car. And we're 0:15:55.240 --> 0:15:58.520 an alternative to traditional financing in the sense that we 0:15:58.600 --> 0:16:02.120 are not lend you money. We're just giving you access 0:16:02.120 --> 0:16:04.440 to the car that you want. Once you select the 0:16:04.520 --> 0:16:07.560 vehicle inside the app, you can either have that vehicle 0:16:07.600 --> 0:16:09.600 brought to you or you can pick it up at 0:16:09.600 --> 0:16:13.800 your local dealership. But the entire process happens digitally in 0:16:13.840 --> 0:16:16.160 the app. In fact, you even signed the agreement with 0:16:16.200 --> 0:16:19.080 your finger. There's no negotiating with a dealer or no 0:16:19.200 --> 0:16:23.240 back and forth or confrontation. We effectively buy the car 0:16:23.720 --> 0:16:28.680 and simultaneously provided to you through that new agreement. What 0:16:28.840 --> 0:16:31.240 is what is your venture with Uber? How is that 0:16:31.280 --> 0:16:35.440 tied together? Well, what we're announcing today is that we 0:16:35.480 --> 0:16:40.800 have completed the acquisition of Uber's exchange leasing portfolio and 0:16:41.000 --> 0:16:44.680 entered into an exclusive partnership with Uber on a national basis. 0:16:44.920 --> 0:16:47.600 And it turns out that Uber drivers are just like 0:16:47.720 --> 0:16:52.880 modern consumers. They also want the same simplicity, savings and flexibility, 0:16:53.040 --> 0:16:56.360 and so we provide Uber the technology so that if 0:16:56.400 --> 0:16:58.760 you're an Uber driver and you download the Uber app 0:16:58.880 --> 0:17:01.840 and you indicate that you don't have a vehicle, that's 0:17:01.880 --> 0:17:06.000 when you'll be introduced to Fair going forward. But Uber 0:17:06.080 --> 0:17:08.640 has a community of drivers that they have been supporting 0:17:08.640 --> 0:17:11.600 for the last two or three years with a leasing 0:17:12.119 --> 0:17:16.040 program that allows drivers to get into these vehicles, and 0:17:16.119 --> 0:17:18.920 we have acquired that entire business from Uber and we're 0:17:18.960 --> 0:17:22.080 now their go forward partner to provide those drivers with 0:17:22.119 --> 0:17:25.600 that flexible option. And it really is about an extension 0:17:25.640 --> 0:17:28.760 of their commitment to their driver community, and it allows 0:17:29.200 --> 0:17:31.760 Uber to be focused on its core competency, which is 0:17:31.800 --> 0:17:36.159 growing ridesharing, and it allows Fair and the expert on 0:17:36.200 --> 0:17:38.560 our team to focus on our core competency, which is 0:17:38.600 --> 0:17:42.439 really providing these kind of flexible ownership options through a 0:17:42.560 --> 0:17:48.000 totally digital platform. Scott, how much does this cost? Well? Traditionally, 0:17:48.320 --> 0:17:51.439 Uber drivers today are either renting or leasing vehicles. This 0:17:51.560 --> 0:17:56.080 represents about a fifty savings over a traditional rental. Now 0:17:56.119 --> 0:18:00.280 that's if you're if you're an uber driver. Well that 0:18:00.480 --> 0:18:03.120 whether you're an Uber driver renting a car, or whether 0:18:03.160 --> 0:18:05.040 you're a consumer renting a car. Okay, all right, I 0:18:05.080 --> 0:18:07.200 just wanted to make it make that clear. So for example, 0:18:07.280 --> 0:18:09.879 let's say you wanted to drive from Santa Santa Monica 0:18:09.920 --> 0:18:12.720 down to San Diego. What does it cost to actually 0:18:13.440 --> 0:18:17.640 complete this transaction just quickly? Well, so our cars are 0:18:17.640 --> 0:18:21.439 really for longer term use. So we're really building the 0:18:21.440 --> 0:18:23.680 product so that consumers can keep the car for as 0:18:23.720 --> 0:18:25.480 long or as little bit. Okay, let's say you wanted 0:18:25.520 --> 0:18:28.280 it four months. Just give me a figure. Yeah, so 0:18:28.400 --> 0:18:30.280 it would be about half the cost of a rental. 0:18:30.320 --> 0:18:32.320 So traditionally, if you were going to rent a car 0:18:32.359 --> 0:18:34.040 for a month that you were going to use for 0:18:34.160 --> 0:18:37.080 right sharing, there might be a hundred and fifty dollars 0:18:37.119 --> 0:18:40.199 a week, so maybe four a month. This is going 0:18:40.240 --> 0:18:42.600 to be half of that. And we got to leave 0:18:42.640 --> 0:18:45.240 it there. We got to leave it there. Scott Painter, 0:18:45.359 --> 0:18:47.560 thank you very much. He is the founder of Fair. 0:18:47.960 --> 0:19:04.680 They're based in Santa Monica. Well, coming up today, we've 0:19:04.680 --> 0:19:08.359 got the results from Facebook as well as Microsoft. Tomorrow 0:19:08.400 --> 0:19:11.720 will be getting earnings from Apple and Alphabet as well 0:19:11.760 --> 0:19:14.040 as Amazon. And here to help us understand what we 0:19:14.040 --> 0:19:17.200 can expect is Michael Scanlon. He his portfolio manager for 0:19:17.320 --> 0:19:21.000 Manu Life Asset Management. He's based in Boston, home to 0:19:21.000 --> 0:19:24.439 Bloomberg one oh six one Boston, Newburyport and thirty in 0:19:24.520 --> 0:19:27.879 Metro West and the South Shore. Michael, great to have 0:19:27.920 --> 0:19:30.520 you with us. Let's begin with Facebook if we can. 0:19:30.600 --> 0:19:33.159 This is a company that at least an annual terms, 0:19:33.600 --> 0:19:37.600 is doing thirty six billion in revenue and putting fifteen 0:19:37.600 --> 0:19:41.080 billion dollars in its pocket. That's the net income. Tell 0:19:41.160 --> 0:19:45.120 us what you look for from Facebook? Well, good morning 0:19:45.160 --> 0:19:47.359 and thanks for having me. I think with Facebook, you 0:19:47.359 --> 0:19:50.679 know expectations that results are going to be strong again tonight. 0:19:50.760 --> 0:19:53.320 I think probably more of the focus will actually be 0:19:53.440 --> 0:19:56.600 on the commentary that's given on the call, just in 0:19:56.720 --> 0:19:58.880 light of some of the announcements they made a couple 0:19:58.880 --> 0:20:02.439 of weeks back in terms of de emphasizing third party 0:20:02.640 --> 0:20:06.480 in more emphasizing people's personal network of posts. Well, this 0:20:06.520 --> 0:20:09.200 will be what to get them to stay more frequently 0:20:09.320 --> 0:20:11.479 is to have a longer period of time that they 0:20:11.480 --> 0:20:15.360 would stay on Facebook, and also to blunt the criticism 0:20:15.400 --> 0:20:19.280 having to do with news and information that is perhaps 0:20:19.320 --> 0:20:23.520 not the real or is not backed by anyone who 0:20:23.560 --> 0:20:28.960 actually knows anything about the topics they're they're posting about exactly. Yeah. 0:20:29.000 --> 0:20:31.080 So you know, the argument here is if if you're 0:20:31.080 --> 0:20:33.320 in the bull camp on Facebook, which we own the 0:20:33.359 --> 0:20:36.600 stock and the John Hancock Balance Fund, is that the 0:20:37.000 --> 0:20:40.200 any decline in terms of just adload that you're seeing 0:20:40.200 --> 0:20:43.240 on there will be offset by positive pricing. And you know, 0:20:43.240 --> 0:20:45.119 if they're reducing the amount of space that they have 0:20:45.119 --> 0:20:48.119 available to advertisers, that ultimately the price of that advertising 0:20:48.160 --> 0:20:51.960 should increase in opted any decline in terms of growth 0:20:51.960 --> 0:20:55.200 and adlade. Okay, alright, so that's Facebook. Turn your attention 0:20:55.240 --> 0:20:58.119 now to Microsoft. They were talking about a one billion 0:20:58.200 --> 0:21:03.360 dollar revenue company. They do twenty six billion dollars in profit. 0:21:03.440 --> 0:21:07.800 What are you looking for with Microsoft? With Microsoft, the 0:21:07.840 --> 0:21:10.840 focus continues to be on this transition, which you know 0:21:10.960 --> 0:21:15.520 really gains steam. One. Sofia Nadela came into power Microsoft, 0:21:15.560 --> 0:21:18.320 taking over the ce role CEO role from Steve Balmer 0:21:18.800 --> 0:21:20.960 uh in that you know, it's this whole transition of 0:21:21.000 --> 0:21:24.160 the cloud. Right. Their commercial cloud business is outperformed every 0:21:24.160 --> 0:21:27.520 metric that the company has laid out that the analyst 0:21:27.560 --> 0:21:30.119 community was expecting, and it continues to be on a 0:21:30.160 --> 0:21:33.159 really strong growth trajectory. So I think people will be 0:21:33.240 --> 0:21:35.920 continued to focus on what the revenue growth trajectory looks 0:21:35.960 --> 0:21:37.960 like there and just with a margin profile and the 0:21:37.960 --> 0:21:40.399 commercial cloud business looks like. Do you think that there 0:21:40.400 --> 0:21:43.000 will be any interest in an increase in the dividend. 0:21:43.000 --> 0:21:48.840 The dividend now is about one Microsoft, so not as 0:21:48.960 --> 0:21:52.720 much focused on the dividend, you know, with this tax 0:21:52.760 --> 0:21:55.960 reform package that we're getting in, obviously, Microsoft and a 0:21:56.000 --> 0:21:57.879 lot of the other big cap tech names which you 0:21:57.880 --> 0:22:01.080 mentioned in the introduction are primary beneficiaries here where it's 0:22:01.080 --> 0:22:02.439 going to free up a lot of cash that they 0:22:02.440 --> 0:22:05.199 can put to work. So with Microsoft, there is some 0:22:05.280 --> 0:22:09.720 expectation that they will increase the repurchase authorization or the 0:22:09.760 --> 0:22:12.000 regular amount of buy back that they've been doing, which 0:22:12.000 --> 0:22:14.520 will will be a nice incremental tail one for the stock. 0:22:14.720 --> 0:22:17.000 All right, Well, the shares of Microsoft right now, they're 0:22:17.080 --> 0:22:20.040 up at dollar four. The stock has gained nearly ten 0:22:20.640 --> 0:22:24.040 so far this year, all right, look forward to tomorrow. 0:22:24.400 --> 0:22:26.800 Would you like to begin with Apple, the iPhone maker, 0:22:26.840 --> 0:22:31.440 because they'll be reporting their results tomorrow. So surprisingly, you know, 0:22:31.440 --> 0:22:33.639 the last handful of weeks here, there have been some 0:22:33.800 --> 0:22:36.800 negative supply chain data points that have been coming out 0:22:36.840 --> 0:22:42.840 in commentaries around iPhone X builds. Apple's stock is underperformed 0:22:42.840 --> 0:22:45.880 tech more recently. You know, it continues to be very 0:22:45.960 --> 0:22:50.360