WEBVTT - Palantir's Premium Valuation, Yum Considers Offloading Pizza Hut, Spotify Rules Audio Streaming

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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<v Speaker 2>All right, let's get back to some of these tech

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<v Speaker 2>earnings coming in here. Palanteer Uber. Yes, I arbitrage between

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<v Speaker 2>Uber and Lyft and people who don't do that. I

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<v Speaker 2>don't understand those people because I get huge discounts twenty

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<v Speaker 2>thirty percent.

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<v Speaker 3>Wait, so you whenever you need to go somewhere, you're

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<v Speaker 3>going to check both apps and then figure out which one.

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<v Speaker 2>It takes an incremental like eight seconds, and it saves

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<v Speaker 2>me real money. And Matt Miller and I had this

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<v Speaker 2>fight on the air. He doesn't do it. He's brand loyalty.

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<v Speaker 4>I'm like, you're leaving money.

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<v Speaker 3>No, No, there's no loyalty to this. This is all

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<v Speaker 3>about how much it costs. Yeah, I don't know, it's

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<v Speaker 3>just a commodity. How about the money?

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<v Speaker 4>Exactly right?

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<v Speaker 2>Man Deeps saying somehow he's built a career on doing

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<v Speaker 2>this stuff and Deep seeing these are senior tech analysts

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<v Speaker 2>Bloomberg Intelligence.

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<v Speaker 4>Mandy, let's start with pat Palenteer. What you call on

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<v Speaker 4>that and what do you make of the stock action today?

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<v Speaker 2>What I'd love to just get your thought on the company,

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<v Speaker 2>the stock and what do you think of the action today?

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<v Speaker 5>The solo, I mean, Palenteer still is the most expensive

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<v Speaker 5>enterprise software business. So at a five hundred billion dollar valuation,

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<v Speaker 5>you have to ask yourself, you know, is this the

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<v Speaker 5>best software company that I can own or is there

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<v Speaker 5>something else out there in the world of AI, which,

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<v Speaker 5>to my mind, open Ai and Entropic are also recurring

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<v Speaker 5>revenue software businesses. Yes, open ai is much bigger in

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<v Speaker 5>their ambitions with regards to a consumer business and an

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<v Speaker 5>enterprise API business. But these companies Open Ai and Tropic

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<v Speaker 5>are growing triple digits and open Ai, for example, is

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<v Speaker 5>at a thirteen billion plus revenue run rate. So when

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<v Speaker 5>I compare an open Ei and Tropic to Palenteer Talenteer,

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<v Speaker 5>you're at four billion dollars rund rate, growing at a

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<v Speaker 5>very healthy fifty percent, trading at one hundred times cv

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<v Speaker 5>DO sales. That is where I think the valuation is

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<v Speaker 5>what gives me a stop.

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<v Speaker 2>Here, Okay, I was raised by gentlemen where you did

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<v Speaker 2>pe ratio, and then I got converted to EV to ibata,

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<v Speaker 2>and then you people in technology got me focusing on

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<v Speaker 2>multiples of revenue.

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<v Speaker 5>Where it comes to software companies not other businesses. Yes, exactly.

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<v Speaker 2>And then I said, all right, I can kind of

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<v Speaker 2>get used to five, six, seven, eight times revenue.

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<v Speaker 4>Now you're telling me what one hundred times?

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<v Speaker 3>Yeah, that's that's It's like peg ratio and eyeballs back

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<v Speaker 3>in the day. So mandeep when it comes to Pounder

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<v Speaker 3>on what it does though there's no other company like it, right,

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<v Speaker 3>that's the issue. It counts big governments as its customers

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<v Speaker 3>and then now increasingly big companies. And as much as

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<v Speaker 3>you can compare a Pounder as a stock to other

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<v Speaker 3>AI plays, the actual responsibilities has the business that it

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<v Speaker 3>conducts is irreplaceable, irreplicable.

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<v Speaker 5>They clearly have a very strong mode in terms of

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<v Speaker 5>you know, creating an ontology. That's what they call basically

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<v Speaker 5>making sense of data that an enterprise may have. And

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<v Speaker 5>think about you know, any enterprise, they'll have ten twenty systems,

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<v Speaker 5>a lot of data replication, and Talenteer can give you

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<v Speaker 5>like a master data where they can help you get

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<v Speaker 5>rid of all their interundancies and give you data that

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<v Speaker 5>really matters for your AI. And so think about an

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<v Speaker 5>organization that has a billion dollar IT budget spending billions

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<v Speaker 5>of dollars on AI. Why would you not spend fifty

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<v Speaker 5>million dollars on Talenteers, especially if you are a government

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<v Speaker 5>or bank or a manufacturing company and not a tech company.

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<v Speaker 5>That's why Palenteer's customer base is not your sophisticated tech

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<v Speaker 5>companies like Google, a Meta or you know, any of

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<v Speaker 5>the tech players, because they do their own thing, but

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<v Speaker 5>it's your bank. Not that they're not sophisticated, but they

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<v Speaker 5>need more help with organizing their data and Talenteer gives

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<v Speaker 5>you an out of the box solution. And in this

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<v Speaker 5>age of AI men, things are really kind of getting

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<v Speaker 5>bigger and bigger in terms of spend. The last thing

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<v Speaker 5>you want to save on is spending on data because

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<v Speaker 5>if your overall project fields since you didn't have good data,

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<v Speaker 5>then it's bad ROI. And that's where Talenteer is really

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<v Speaker 5>benefiting and making a case Guys, you're spending so much

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<v Speaker 5>on infrastructure, why are you not spending on data? And

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<v Speaker 5>I think that's a good pitch.

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<v Speaker 4>Don't ship out on the data. Stay with us. More

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<v Speaker 4>from Bloomberg Intelligence coming.

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<v Speaker 1>Up there For this, you're listening to the Bloomberg Intelligence podcast.

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<v Speaker 1>Catch us live weekdays at ten am Eastern on Apple,

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<v Speaker 1>Cocklay and Android Auto with the Bloomberg Business App. Listen

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<v Speaker 1>live on YouTube.

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<v Speaker 2>Looking at young brands today, that's a stock in the news.

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<v Speaker 2>Uh sucks up five point six percent today, It's up

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<v Speaker 2>about ten percent year to date. Launching a strategic review

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<v Speaker 2>focusing on their Pizza Hut brand. There, let's break it

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<v Speaker 2>down a little bit with Michael Halen. He's a senior

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<v Speaker 2>restaurant analyst for Bloomberg Intelligence. Michael, when I was in

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<v Speaker 2>college in Richmond, Virginia, Pizza Hut was the bomb. That's

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<v Speaker 2>all we had down there for pizza. What's going on

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<v Speaker 2>with the Pizza Hut and what's Yum's thinking about?

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<v Speaker 5>Yeah?

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<v Speaker 6>Uh, you know, I miss I missed Pizza Hut from

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<v Speaker 6>back in the day.

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<v Speaker 4>You know, I feel like the quality.

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<v Speaker 6>Has slipped since then. Man, I lost those breadsticks especially Uh.

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<v Speaker 6>You know, UH International has been okay, but US has

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<v Speaker 6>been a big time drag on UFC. On a on

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<v Speaker 6>young brand's results. So yeah, so I think this was

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<v Speaker 6>kind of a long time coming. It's really been a

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<v Speaker 6>drag on the top and bottom line growth. You know,

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<v Speaker 6>Taco Bell is an absolute monster, is putting up unit

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<v Speaker 6>growth as well as same store sales growth quarter after

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<v Speaker 6>quarter after quarter. KFC has had some well documented same

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<v Speaker 6>store sales issues in the US, but that seems to

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<v Speaker 6>be turning. They had a solid little quarter here with

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<v Speaker 6>flat same store sales versus six straight quarters of decline,

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<v Speaker 6>so that business seems to be accelerating a little bit.

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<v Speaker 6>And KFC unit growth overseas is phenomenal, absolutely phenomenal.

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<v Speaker 4>They crush it overseas.

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<v Speaker 6>Yeah, so Pizza Hut has been this drag on this

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<v Speaker 6>business for quite some time. I think the street is

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<v Speaker 6>really excited about a potential divestiture here.

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<v Speaker 2>Any potential buyers out there that you can identify, No.

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<v Speaker 4>We don't have.

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<v Speaker 6>We don't think any of the companies in the public

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<v Speaker 6>market are going to be an acquirer of Pizza Hut. Yeah,

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<v Speaker 6>you know, this thing is, like I said, has struggled mightily.

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<v Speaker 6>I mean, we can see pete private equity. I think

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<v Speaker 6>private equity would be a good fit right, because it's

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<v Speaker 6>going to take you know, management set on the call.

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<v Speaker 6>It might take some of their markets two three years

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<v Speaker 6>to get them back to like their rightful position as

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<v Speaker 6>market leader in those countries they which they see as

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<v Speaker 6>their rightful, you know position. I think Dominos would have

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<v Speaker 6>something to say about that. But you know, it's gonna

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<v Speaker 6>take a few years to turn around some of these markets,

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<v Speaker 6>and private equity obviously looking out a five to seven

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<v Speaker 6>year time horizon would be a good fit.

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<v Speaker 2>All right, Mike, Let's step back the restaurant space in general,

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<v Speaker 2>getting through you know, earning season here. What are you

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<v Speaker 2>learning about kind of the consumer out there from the

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<v Speaker 2>restaurant perspective.

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<v Speaker 6>Yeah, today we heard from Wingstop and another fast casual

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<v Speaker 6>chain that's struggling also partly been a victim of its

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<v Speaker 6>own success.

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<v Speaker 7>Right.

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<v Speaker 6>It's absolutely crushed it over the last six years and

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<v Speaker 6>is lapping very very strong results from last year. But

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<v Speaker 6>they talked some more about lowing come consumers and Hispanic

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<v Speaker 6>consumer weakness and it broadening here in the third quarter.

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<v Speaker 6>The stock is up pretty significantly, though. We think there's

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<v Speaker 6>some couple of things going on. Number one, is stock

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<v Speaker 6>sold off big time off that Chipotle's poor third quarter print.

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<v Speaker 6>And secondly, there's some optimism here, I think around the

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<v Speaker 6>smart kitchens. So what's a smart kitchen they're so they're

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<v Speaker 6>rolling out some kitchen technology that's boosting operations. It's speeding

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<v Speaker 6>up service times. You know, they're they're putting out consistent

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<v Speaker 6>ten minute service times, which is fifty percent better than

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<v Speaker 6>they were doing prior. Accuracy is better, Food's getting to

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<v Speaker 6>customers hotter and fresher, and people are going to have

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<v Speaker 6>a better experience. And so stores that have had this

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<v Speaker 6>technology right now, it's in about two thirds of the

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<v Speaker 6>US stores, It's going to be in all three thousand

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<v Speaker 6>by the end of the year. But stores that have

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<v Speaker 6>this equipment and have had it the longest are outperforming

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<v Speaker 6>on same source sales by five hundred basis points.

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<v Speaker 4>So we think that's that's why the stock is up

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<v Speaker 4>so much.

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<v Speaker 6>People are now a little bit more confident in a

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<v Speaker 6>positive twenty twenty six despite the decelerating trends here in

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<v Speaker 6>the third quarter.

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<v Speaker 2>Boy, big Big Pop today stocks up thirteen percent today,

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<v Speaker 2>down fourteen percent year to date, but a good move today.

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<v Speaker 2>I don't think there's wingstops in Jersey, Are there Mike,

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<v Speaker 2>I haven't seen one.

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<v Speaker 6>Yeah, there's there's some, but there's there's not you know,

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<v Speaker 6>there's not a whole bunch. You know, Texas, it's strong

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<v Speaker 6>in Texas.

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<v Speaker 4>They're talking about the Southwest being strong.

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<v Speaker 6>But now, man, we need some more new Jersey wing

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<v Speaker 6>stuff franchisees.

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<v Speaker 2>The product's pretty good, absolutely. So what's going on on

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<v Speaker 2>the laborfront for restaurants? I'm thinking quick service restaurants. You know,

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<v Speaker 2>with the southern border shut off, that was one of

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<v Speaker 2>the industries that said we may have some labor problems

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<v Speaker 2>associated with that.

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<v Speaker 4>You heard from your companies about that.

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<v Speaker 6>Yeah, you know, our companies just talk about the fact

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<v Speaker 6>that they use Everify and there and they do everything

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<v Speaker 6>by the book, which you know, I think is predominantly

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<v Speaker 6>the case. The impact that you know you're seeing a

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<v Speaker 6>is with more of the independent restaurants.

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<v Speaker 5>OK.

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<v Speaker 6>But then be also kind of causes labor costs to

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<v Speaker 6>go higher here for the public chains, right, and they're

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<v Speaker 6>seeing another four to five you know, wage rate inflation

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<v Speaker 6>this year. That's been pretty common year in and year

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<v Speaker 6>out since the pandemic.

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<v Speaker 4>Stay with us. More from Bloomberg Intelligence coming up after this.

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<v Speaker 1>You're listening to the Bloomberg Intelligence Podcast. Catch us live

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<v Speaker 1>weekdays at ten am Eastern on Apple, Cocklay and Android

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<v Speaker 1>Auto with the Bloomberg Business app. Listen on demand wherever

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<v Speaker 1>you get your podcasts, or watch us live on.

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<v Speaker 2>YouTube, Ranganath and she covers all the media names, including Spotify,

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<v Speaker 2>and she explained it to me very clearly early on in.

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<v Speaker 4>Coverage of this company.

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<v Speaker 2>I think of Spotify as kind of the Netflix for music,

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<v Speaker 2>and it's like, okay, now I get it.

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<v Speaker 4>Keitha, thanks so much for joining us here. What did

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<v Speaker 4>you make of the Spotify numbers?

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<v Speaker 7>I actually like the Spotify numbers, Paul. I mean, you know,

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<v Speaker 7>the big numbers that we always look for are, of course,

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<v Speaker 7>the user metrics. We want to see them kind of

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<v Speaker 7>do well on both monthly active users, which are basically

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<v Speaker 7>the free listeners, as well as the premium subscribers, which

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<v Speaker 7>is basically, you know, everyone paying about twelve dollars a

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<v Speaker 7>month for a Spotify subscription, and both those numbers came

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<v Speaker 7>in well ahead of guidance. The other number that we

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<v Speaker 7>look for in Spotify results is gross margin. This has

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<v Speaker 7>been you know, a constant point of debate, but Spotify

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<v Speaker 7>has done really well in terms of expanding their gross margin.

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<v Speaker 7>They again delivered numbers ahead of guidance both for you know,

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<v Speaker 7>third quarter as well as ahead of forecast for the

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<v Speaker 7>fourth quarter in terms of guidance. So fundamentals seem to

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<v Speaker 7>be really strong. I think the one concern, Paul, that

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<v Speaker 7>has really kind of emerged with Spotify over the past

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<v Speaker 7>few months is pricing power. You know, are they going

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<v Speaker 7>to keep you know, being able to increase prices? And

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<v Speaker 7>this is something that has dominated the conversation for not

0:12:16.080 --> 0:12:18.839
<v Speaker 7>just Spotify, but of course for any streaming company. We've

0:12:18.840 --> 0:12:22.000
<v Speaker 7>seen Netflix, as you just pointed out, demonstrate really good

0:12:22.040 --> 0:12:24.360
<v Speaker 7>pricing power. I think Spotify has very good pricing power

0:12:24.400 --> 0:12:27.000
<v Speaker 7>as well, but people are really waiting for the next

0:12:27.040 --> 0:12:30.520
<v Speaker 7>big US price hike to really gain more confidence in

0:12:30.559 --> 0:12:30.920
<v Speaker 7>the story.

0:12:31.320 --> 0:12:34.679
<v Speaker 2>Keith, what's the competitive landscape for Spotify out there? Because

0:12:34.800 --> 0:12:37.560
<v Speaker 2>as we think about the video business, it's Netflix and

0:12:37.559 --> 0:12:39.360
<v Speaker 2>then a kind of a big drop down to Disney

0:12:39.400 --> 0:12:41.360
<v Speaker 2>and then a bigger drop to kind of everybody else

0:12:41.559 --> 0:12:42.160
<v Speaker 2>fighting it out.

0:12:42.200 --> 0:12:44.920
<v Speaker 4>What's the landscape for in the audio business.

0:12:45.840 --> 0:12:49.199
<v Speaker 7>It's actually very similar, Paul. In fact, you know, Spotify

0:12:49.360 --> 0:12:51.920
<v Speaker 7>just leads by a wide, wide margin. So if you

0:12:52.040 --> 0:12:55.599
<v Speaker 7>just look at both the global audio streaming market in

0:12:55.679 --> 0:12:57.760
<v Speaker 7>terms of subscribers, they have about a thirty three percent

0:12:57.840 --> 0:13:01.319
<v Speaker 7>share globally. They have close to almost forty percent share

0:13:01.440 --> 0:13:04.800
<v Speaker 7>in the US market, so way ahead of their competitors.

0:13:04.840 --> 0:13:07.920
<v Speaker 7>So obviously gives them a lot of I think, you know,

0:13:08.200 --> 0:13:11.040
<v Speaker 7>again we come back to pricing power. Gives them definitely

0:13:11.040 --> 0:13:13.400
<v Speaker 7>a lot of pricing power in the market.

0:13:13.880 --> 0:13:16.599
<v Speaker 2>So what's the on the cost structure for them? What

0:13:16.880 --> 0:13:18.880
<v Speaker 2>are the real levers for them? It seems like you know,

0:13:18.960 --> 0:13:21.240
<v Speaker 2>the I know at Netflix and they got to write big,

0:13:21.240 --> 0:13:25.520
<v Speaker 2>big checks to you know, either license content or you know,

0:13:25.559 --> 0:13:27.000
<v Speaker 2>create their own content.

0:13:27.040 --> 0:13:29.120
<v Speaker 4>What's it like on the Spotify side.

0:13:30.040 --> 0:13:31.880
<v Speaker 7>Yeah, you bring up an excellent point, Paul, And this

0:13:31.920 --> 0:13:33.880
<v Speaker 7>has kind of again been one of the pain points

0:13:33.920 --> 0:13:36.880
<v Speaker 7>for Spotify because again, this is a music streaming service.

0:13:36.920 --> 0:13:41.520
<v Speaker 7>They don't own any of you know, the music music itself.

0:13:41.520 --> 0:13:44.920
<v Speaker 7>That's all kind of controlled by the labels, and as

0:13:44.960 --> 0:13:46.560
<v Speaker 7>you well know, content is king.

0:13:46.640 --> 0:13:48.079
<v Speaker 4>So this is really where.

0:13:47.840 --> 0:13:50.400
<v Speaker 7>Spotify has a lot of trouble because for every dollar

0:13:50.440 --> 0:13:53.719
<v Speaker 7>that they earned, about seventy cents goes back to the

0:13:53.840 --> 0:13:56.719
<v Speaker 7>music label, so they have very little leverage. They've been

0:13:56.840 --> 0:13:59.680
<v Speaker 7>trying to kind of change that whole dynamic, that whole

0:13:59.679 --> 0:14:02.240
<v Speaker 7>EQUI come up with more of their content. So a

0:14:02.240 --> 0:14:05.640
<v Speaker 7>big investment area for them has been you know, podcast

0:14:05.720 --> 0:14:08.440
<v Speaker 7>has been audiobooks where they kind of get better you know,

0:14:08.720 --> 0:14:09.720
<v Speaker 7>profit dynamics.

0:14:10.000 --> 0:14:11.120
<v Speaker 4>It has worked well.

0:14:11.760 --> 0:14:13.640
<v Speaker 7>But actually one of the things that we're kind of

0:14:13.679 --> 0:14:16.840
<v Speaker 7>looking for next year is we're going to see a

0:14:16.960 --> 0:14:20.440
<v Speaker 7>step up in all of the royalty costs. And that's

0:14:20.480 --> 0:14:23.360
<v Speaker 7>again something that the street and investors are a little

0:14:23.400 --> 0:14:26.880
<v Speaker 7>bit nervous about because we need to see how you know,

0:14:26.960 --> 0:14:30.720
<v Speaker 7>Spotify kind of manages their whole margin expansion story as

0:14:30.760 --> 0:14:34.240
<v Speaker 7>those royalty costs go up, So the amount that they're

0:14:34.280 --> 0:14:36.040
<v Speaker 7>paying all of the music labels, the warners, and the

0:14:36.080 --> 0:14:38.040
<v Speaker 7>universals of the world is going to go up slightly.

0:14:38.520 --> 0:14:40.080
<v Speaker 7>But we still think that they're in good shape. They've

0:14:40.080 --> 0:14:42.200
<v Speaker 7>been adding a ton of new features to all of

0:14:42.240 --> 0:14:45.920
<v Speaker 7>their tiers. They're probably going to debut some new tiers again.

0:14:46.000 --> 0:14:47.960
<v Speaker 7>All of that bills to that whole pricing, power and

0:14:48.000 --> 0:14:49.000
<v Speaker 7>monetization story.

0:14:49.320 --> 0:14:52.520
<v Speaker 2>And how is Apple as a competitor here, Because anytime

0:14:52.560 --> 0:14:56.080
<v Speaker 2>I see a company that's even remotely in competition Apple,

0:14:56.120 --> 0:14:56.800
<v Speaker 2>I get nervous.

0:14:58.440 --> 0:15:00.360
<v Speaker 7>So Apple, you know, if you're just kind of looking

0:15:00.400 --> 0:15:04.920
<v Speaker 7>at it. In terms of share, they are way below Spotify,

0:15:05.000 --> 0:15:07.520
<v Speaker 7>both globally as well as in the US market, so

0:15:07.720 --> 0:15:12.240
<v Speaker 7>not much of a competitor from from a share standpoint.

0:15:12.400 --> 0:15:15.680
<v Speaker 7>In fact, they've even priced their products slightly lower. Some

0:15:15.760 --> 0:15:18.320
<v Speaker 7>of the you know, some of the noise around Spotify

0:15:18.400 --> 0:15:20.760
<v Speaker 7>and Apple has been you know, in terms of the

0:15:20.800 --> 0:15:23.840
<v Speaker 7>iOS and whether you know, Spotify can kind of get

0:15:23.880 --> 0:15:26.400
<v Speaker 7>better terms, and they managed to do that as well,

0:15:26.640 --> 0:15:29.080
<v Speaker 7>So some of the changes on the iOS system have

0:15:29.160 --> 0:15:33.040
<v Speaker 7>actually helped Spotify in terms of getting a better market

0:15:33.040 --> 0:15:37.120
<v Speaker 7>share and getting better economics. Actually, so Apple Music not

0:15:37.240 --> 0:15:39.720
<v Speaker 7>too much of a worry for Spotify.

0:15:39.800 --> 0:15:41.920
<v Speaker 2>All right, let's switch gears to some of the big

0:15:42.000 --> 0:15:44.920
<v Speaker 2>cat media names you cover. I need to get an update,

0:15:45.120 --> 0:15:51.360
<v Speaker 2>Githa on Paramount, Warner Brothers, Discovery, Comcast, any movement forward

0:15:51.400 --> 0:15:53.880
<v Speaker 2>there or have to wait to the Allen Company conference

0:15:53.880 --> 0:15:54.440
<v Speaker 2>next summer to.

0:15:54.400 --> 0:15:55.360
<v Speaker 4>Get something done.

0:15:56.160 --> 0:15:58.240
<v Speaker 7>Yeah, we really don't know. We haven't heard anything. So

0:15:58.360 --> 0:16:01.480
<v Speaker 7>just a few days back, I think it was just

0:16:01.520 --> 0:16:03.640
<v Speaker 7>for last week and we heard that Netflix was kind

0:16:03.640 --> 0:16:06.760
<v Speaker 7>of poking around. So Warner Brothers Discovery at this point

0:16:06.760 --> 0:16:09.720
<v Speaker 7>has opened up their books to any of the interested parties.

0:16:10.560 --> 0:16:13.280
<v Speaker 7>There were news reports and Netflix is looking at some

0:16:13.360 --> 0:16:16.200
<v Speaker 7>of the financials of Warner Brothers Discovery. Again, this doesn't

0:16:16.200 --> 0:16:19.320
<v Speaker 7>necessarily mean that a bit is coming, but of course

0:16:19.440 --> 0:16:22.640
<v Speaker 7>anybody who you know has a chance, I'm sure, wants

0:16:22.680 --> 0:16:24.560
<v Speaker 7>to take a look at the Warner Brothers Discovery, especially

0:16:24.600 --> 0:16:26.280
<v Speaker 7>the studio and the streaming asset. So right now we

0:16:26.320 --> 0:16:29.440
<v Speaker 7>know Comcast is interested, we know Netflix is definitely interested,

0:16:29.640 --> 0:16:32.960
<v Speaker 7>and of course Paramount Skydance is interested. But again Paramoun

0:16:32.960 --> 0:16:36.080
<v Speaker 7>skid as interested for the whole company, so streaming studio

0:16:36.240 --> 0:16:37.680
<v Speaker 7>plus the TV networks.

0:16:37.920 --> 0:16:38.440
<v Speaker 5>So this is.

0:16:38.400 --> 0:16:41.040
<v Speaker 7>Again you know, I don't know it's how it's going

0:16:41.040 --> 0:16:43.040
<v Speaker 7>to play out, but hopefully we should get to hear

0:16:43.680 --> 0:16:47.360
<v Speaker 7>from you know, somebody pretty soon. Warner Brothers Discovery is

0:16:47.360 --> 0:16:49.200
<v Speaker 7>reporting a little later this week.

0:16:49.560 --> 0:16:51.720
<v Speaker 4>Boy. Yeah, you think about it, Gith.

0:16:51.800 --> 0:16:54.440
<v Speaker 2>I mean, you've got a company whose board and whose

0:16:54.440 --> 0:16:56.280
<v Speaker 2>CEO seems to be open to a deal. You would

0:16:56.280 --> 0:16:59.800
<v Speaker 2>think that something get happened quickly, but it's not.

0:16:59.880 --> 0:17:03.760
<v Speaker 7>How is it? Price has been a sticking point, Paul,

0:17:03.880 --> 0:17:07.200
<v Speaker 7>So we know that. Yeah, so we know that you know,

0:17:07.400 --> 0:17:09.320
<v Speaker 7>a paramount has come in with about twenty four dollars

0:17:09.400 --> 0:17:12.359
<v Speaker 7>a share. It looks like David's also was looking for

0:17:12.400 --> 0:17:15.359
<v Speaker 7>something north of thirty dollars, so again it's you know,

0:17:15.400 --> 0:17:17.600
<v Speaker 7>it's all going to come down to those negotiations.

0:17:17.640 --> 0:17:22.320
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