McKrispy

Hi, today we explore: (1) The vinyl revival, (2) Canada Goose’s sales, and (3) Krispy Kreme’s ongoing renaissance. TOGETHER WITH Today's Topics Good morning. The tragic news of the [Francis Scott Key Bridge]( in Baltimore collapsing on Tuesday morning has rocked the US, with 6 missing workers now presumed dead. Today we explore: - Track record: Vinyls are outselling CDs once again. - Up and down jackets: Canada Goose’s sales growth is slowing. - Krispy Kreme dreams: McDonald’s is teaming up with the doughnut maker. Have feedback for us? Just hit reply — we'd love to hear from you! [Read this on the web instead]( Track record Almost a century after the first [long-playing record]( was pressed, it seems that vinyl is still spinnin’. A [new report]( from the Recording Industry Association of America (RIAA) yesterday revealed that people in the US bought a collective 43 million vinyl records last year — some 6 million more units than the number of CDs sold, marking the second year running that the vintage format has won out. While streaming remains king, making up ~84% of US recorded music revenues, vinyl sales still raked in an estimated $1.4bn, compared with just $537m for less pricey CD formats. Turning tables With sales peaking in the late 1970s, before it was dethroned by CDs/cassettes in the 80s and throughout the 90s and 00s, vinyl’s popularity has seen a resurgence over the past decade, in no small part because of its modern day consumer advantage over other mediums: the “[cool factor](. But, hipsters aside, the recent uptick can also be attributed to vinyl records breaking into the [mainstream]( with Kendrick Lamar, Harry Styles, and Lana Del Rey all releasing their latest albums on wax — as well as megastar Taylor Swift, whose album 1989 (Taylor's Version) was the best-selling vinyl LP of 2023, making up 7% of all US vinyl album sales last year. Feeling the chill Canada Goose, the outerwear brand favored by chilly film set workers and heat-seeking high-end shoppers, [yesterday announced]( plans to shed ~17% of its corporate workforce as part of a cost-cutting “Transformation Program”. The layoffs could affect ~150 staff as the brand, where you can pick up a parka for $1850, looks to slash overheads. In the wake of the pandemic, the experience economy boomed, and, so far, it’s showing [few signs of slowing down](. Meanwhile, demand for luxury items has started to slip as years of inflation have led to American consumers tightening their belts... a trend that almost certainly played a part in Canada Goose’s North American sales dropping 14% last quarter. Furgive and furget Slumping sales in its homeland and the US didn’t stop the brand from shipping more than $600m globally — buoyed by strong demand in China — but it does suggest that the feather-stuffed company’s golden days of growth are behind it. Even so, the ultra-warm coats still see seasonal sales surges as temperatures drop, despite using controversial materials. Indeed, Canada Goose has long faced criticism from animal rights activists for using coyote fur to line its hoods, but the company’s decision to move away from buying new fur has helped it score with younger shoppers in particular: [last year]( over 50% of its customers were millennials or younger. [Sponsored by Masterworks]( The art investment platform with 21 profitable exits How has the art investing platform Masterworks been able to realize a profit for investors with each of its 21 exits to date? Here’s an example: an exited Banksy was offered to investors at $1.039 million and internally appraised at the same value after acquisition. As Banksy’s market took off, Masterworks received an offer of $1.5 million from a private collector, resulting in 32% net annualized return for investors in the offering. Every artwork performs differently — but overall, Masterworks assets held longer than one year have delivered median returns of 17.6%, 17.8% and 21.5%** (respectively). [Masterworks takes care of the heavy lifting]( from buying the paintings, to storing them, to selling them for you (no art experience required). How can you get involved in Masterworks' next offering? [Just use this exclusive link]( to unlock VIP access. [Get VIP access to Masterworks' next investment opportunity]( McKrispy Imagine you are a Krispy Kreme executive, tasked with working out how to sell more than the $1.7 billion worth of doughnuts that your company shipped last year, and maintain the decade-plus streak in revenue growth. New flavors, more stores, and marketing might help, but your dream partnership would involve getting the product in front of millions of already-hungry people ready to treat themselves. That dream became a reality this week, after [McDonald’s announced]( plans to sell Krispy Kreme’s famous glazed rings at all of the burger chain’s ~13,500 US locations by the end of 2026, supersizing their existing partnership and sending DNUT shares up a stunning 39% on the news. The deal follows other recent [savory/sweet fast food collabs]( like Wendy’s/Cinnabon and Subway/Auntie Anne’s. Double glazed The rollout will require the [doughnut-maker’s distribution]( to more than double to satisfy demand — and, in addition to reaching millions more sweet-toothed customers, the company intends to build on the ~6,800 third-party stores (like gas stations and grocery stores) that it already serves across America. Both are perfect examples of the chain’s “hub and spoke” model, which uses nucleated production sites (hubs) to make doughnuts that are delivered to nearby locations (spokes). Down the hole: Krispy Kreme may be on a sugar-induced high now, but its shares have actually lagged over the past year, in part due to fears that the popularity of [weight loss drugs]( like Ozempic may reduce the nation’s appetite. More Data • Not nineteen forever: Trader Joe’s famous 19 cents banana is getting [more expensive]( for the first time in over 20 years, with the store upping the price to 23 cents. • The iconic door from Titanic, which many argue to this day could easily have carried both Jack and Rose safely to shore, just fetched ~$719k [at auction](. • With each of its 21 exits to date, [art investing platform Masterworks]( has realized a profit for investors. Assets held longer than one year have delivered median returns of 17.6%, 17.8% and 21.5%** (respectively) — and [Chartr readers can get VIP access to Masterwork’s next offering here]( • A single ticket in New Jersey just scooped the $1.13 billion Mega Millions jackpot — the 8th largest lottery payout in [US history](. ***This is sponsored content. Hi-Viz • Time share: Visualizing the brands with the [biggest splits]( of the Swiss watch market. Thanks for reading. See you on Sunday for our deep dive! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi%2C%0A%0AI%20like%20the%20newsletters%2C%20but%20I%20had%20a%20thought%20for%20you...) or want to [sponsor]( this newsletter? Not a subscriber? Sign up for free below. [Subscribe]( **Advertiser’s Disclosure: The content is not intended to provide legal, tax, or investment advice. Past performance is not indicative of future performance. Investing involves risk. “Net Annualized Return” refers to the annualized internal rate of return, or IRR, net of all fees and costs, to holders of Class A shares from the primary offering, calculated from the final closing date of such offering to the date the sale is consummated. A more detailed breakdown of the Net Annualized Return calculation for each issuer can be found in the respective Form 1-U for each exit. The 3 median returns above represent the ones closest in percentage to the median of the 12 exits with holding periods over 1 year. Masterworks internally appraises artworks that are held by entities administered by Masterworks Administrative Services on an ongoing basis, and obtains an independent review of appraisals by a third-party appraiser on an annual basis.Appraisals are prepared in accordance with the 2020-2021 Uniform Standards of Professional Appraisal Practice (“USPAP”) developed by the Appraisal Standards Board of the Appraisal Foundation, although it is noted that there are potential conflicts of interest given that some or all individual members of the appraisal committee are employees of Masterworks and Masterworks retains an ownership interest in the subject artworks as well as ownership of the Masterworks Platform. Masterworks compiles historical data from public auctions to produce metrics that we believe can be helpful in measuring and analyzing historical trends in artist markets and the historical price appreciation of specific artworks. 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