Super Bowls, Burrito Bowls, and Smokin’ Bowls

Between the Big Game, Chipotle’s amazing Q4 report, and a breakthrough in marijuana legislation, this weekend was packed full of bowls of every kind! February 15, 2022 [Turn on your images.]( Super Bowls, Burrito Bowls, and Smokin’ Bowls This past weekend was packed full of bowls of every kind. On Super Bowl Sunday, the LA Rams beat out the Cincinnati Bengals to become NFL champs…but were future-oriented advertisers the real winners of the night? Chipotle, everyone’s favorite destination for low-cost, high-quality burritos, turned in an earnings report that blew Wall Street expectations out of the water. Thanks to new, innovative restaurant design, Chipotle and its investors are raking in profits…so maybe now we’ll be able to afford the guacamole surcharge. And if you’re someone who likes to “partake of the herb”—or just someone looking to partake of a profitable opportunity—then this legal development may put an even bigger smile on your face. Are we on our way to the market’s first “pot stock millionaires”…or will this new effort go up in smoke? --------------------------------------------------------------- [Turn Your Images On] [Super Bowl Advertisers Sell The Future: Did They Waste Their Money?]( Ryan James Those of you who watched the Super Bowl on Sunday—especially those of you who watch just for the commercials—may have noticed that this year’s advertisers were trying to sell the future to you like never before. The Super Bowl commercials were basically one giant agglomeration of what we have been writing about here at Money Moves for the past several months. The Metaverse. Check. Crypto. Check. EVs. Check. NFTs. Check. Battery technology. Check. Apparently, America’s largest marketing firms are big readers of Money Moves. So, thank you guys for reading! In all seriousness, however, the Super Bowl LVI commercials might have been a watershed moment for the future of the economy. Advertisers are starting to advertise about the future and are working to convince consumers that the future is worth investing in and that, in many ways, the future is already here. Cryptocurrencies were featured prominently for the first time during Sunday’s game. Coinbase had a giant QR code bouncing on the screen and, if you scanned it with your phone, it would bring you to the Coinbase website and provide you with free crypto. Eat your heart out, Oprah. [Turn Your Images On] Crypto.com had an ad featuring Lebron James talking to his younger self about all the technological innovations that would come about as he got older, making the point about how far technology has come, with crypto being just the latest in the chain of innovations. And then there was my favorite of the bunch: the FTX ad featuring Larry David. Larry David is an American treasure, a genius comedic mind who gave us “Seinfeld” and “Curb Your Enthusiasm.” Now Larry David has given us one on FTX. The premise of the ad is that Larry David, known as a curmudgeonly figure, was around during times of famous inventions like the wheel, the lightbulb, and the Declaration of Independence. In the ad, David shows that he was skeptical of all those inventions, and now cryptocurrencies are on his list. The ad highlighted the FOMO—fear of missing out, for all you non-hip readers. It is a genuine emotion that FTX was playing on, and it likely worked, because many people are talking about the ad today. [Turn Your Images On]( [( As far as the Electric Vehicle ad, my favorite was the return of Dr. Evil from Austin Powers. Dr. Evil, played by Mike Myers, starred in a General Motors commercial promoting GM’s fleet of EVs. In the commercial Dr. Evil devises a plot to save the world from climate change by selling EVs to reduce carbon emissions, with the long-term goal of saving the world to destroy the world. An Austin Powers-worthy plot indeed. [Turn Your Images On]( [( And there you have it, folks. Another Super Bowl is in the books. My condolences to you Cincinnati Bengals fans, and congratulations to the Los Angeles Rams fans in our Money Moves audience. It was a great game. Now, whether the Super Bowl was a great game for advertisers is still to be determined… --------------------------------------------------------------- [Turn Your Images On] [The Spark That’s Needed To Ignite The Marijuana Market]( by Shawn Ambrosino I’m covered in tattoos. I know that’s a weird place to start a conversation about the marijuana market, but stick with me…there’s a point. My tattoos cover both arms from the wrist up, my upper chest, and a full back piece. When I get the chance, I’ll be doing both of my lower legs as well. The funny thing is, thirty or forty years ago, I wouldn’t have been accepted in the straight-laced corporate world. They’d have taken one look at my tattoos and judged my intelligence and expertise (or lack thereof) and branded me a loser, a biker, or a drug dealer. [Turn Your Images On] The funny thing is, I don’t drink, smoke, or do any drugs whatsoever. I would’ve put my blood work up against any Wall Street bigwig back then to prove it, but it wouldn’t have mattered. I’d have still been shunned for the way I look. However, times have changed since then. Tattoos are as common as Rolexes in the boardroom these days, and people are less judgmental about these types of things (except for hair, because there are still some hairstyles that simply are a no-go in the corporate environment, which is weird when you really think about it). It’s funny how acceptance changes over time. The Only Constant Is Change There was also a time when anybody that smoked marijuana was nothing more than a “stoner” or a “burnout,” seen as nothing more than a common criminal addicted to dope–but as I just said, times, they are a-changing. Smoking marijuana has gone from a taboo crime to a more-or-less accepted activity. State after state has adopted it for medical use, and some have even made it fully legal for recreational use as well. When the legal marijuana market first started making headlines a few years ago, people thought it was going to help them make money hand over fist. People saw how much money it made on the illegal side, and most figured that wealth would translate over to the legal side. However, the first marijuana stocks popped up on the Pink Sheets almost 15 years ago now, and yet there has been no generation of “Pot Stock millionaires.” What’s going on? Marijuana is more popular and accepted than ever, yet the market still seems to be stuck in the mud. Why is that? Well, it comes down to one thing… While states have been jumping on cannabis in droves, until the federal government addresses its legality, there’s going to be at least ONE major hang-up that keeps the market down: legal marijuana companies still can’t use US banks to hold their cash. Sure, it may be legal to smoke or use the substance in 47 states, but until the federal government decriminalizes it or comes up with a legal banking fix, the companies that sell it won’t be able to function like legitimate institutions because they’ll be cut off from financial services like checking accounts or lines of credit. In the eyes of the federal government, marijuana companies are still outlaws - and until that view changes, the marijuana market will be spinning its wheels. [Turn Your Images On] Fortunately, that could soon change for the better. US Representative Ed Perlmutter (D-CO) is on a crusade to change that and has put forth legislation to bring some legitimacy to the cannabis business. The Coloradan has drafted the [SAFE Banking Act]( which, according to the bill’s description on Congress.gov, “generally prohibits a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate cannabis-related business. Prohibited penalties include terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides financial services to a legitimate cannabis-related business and prohibiting or otherwise discouraging a depository institution from offering financial services to such a business.” Basically, it grants more freedom to American citizens and legitimate businesses alike–and I am all for more freedoms across the board. Sounds great, right There’s only one problem... Perlmutter has presented the legislation five times. Five times, it’s passed in the House…and five times, it’s been blocked by the Senate. So, until those boys and girls get things figured out up there, the market will be stuck in limbo. We won’t be meeting any Pot Stock millionaires for a while. But that being said, the very moment legislation like this is passed will be the day that the market finally gets the spark it needs to ignite into a full-blown bonfire. Now, that doesn’t mean there’s no money on the table now. Money & Markets Chief Research Analyst [Matt Clark]( did a WHOLE video on four of the best plays in cannabis right now. It’s definitely worth a watch! [Turn Your Images On]( [( Until next time… --------------------------------------------------------------- [Turn Your Images On] [Bravocado, Chipotle! Mexican Grille Chain Reports Strong Earnings]( by Ryan James Everyone’s favorite low-cost, high-quality Mexican grille reported strong earnings this week that beat Wall Street’s expectations. I am of course referring to [Chipotle](. According to [Yahoo Finance]( Chipotle reported Q4 revenue of $2 billion, adjusted earnings per share of %5.58, and same-store sales increase of 15.2% Slow clap for Chipotle. Bravocado! [Turn Your Images On] The company also noted that 42% of sales came from digital services like their online app and the new "Chipotlanes" feature. And if you’re asking yourself “what the heck is a Chipotlane?”… [Turn Your Images On] No, Chipotlanes aren’t Chipotle’s version of a bowling alley. It’s a new feature the chain has implemented, introducing a drive-thru or walk-up lane where people who have ordered their food digitally can claim their bounty of Mexican food goodness. If your local Chipotle doesn’t have a Chipotlane, they likely will soon. 80% of new store locations are constructed with a Chipotlane. So you have that to look forward to my, burrito-loving friends! Chipotle has benefited immensely from its digital rewards program that allows users to rack up points each time they place an order. Chipotle’s rewards program is similar to Starbuck’s rewards program, except Starbucks requires you to load money or gift cards into the app before purchasing so the customer has a balance. That is genius! Starbucks reported that there is currently $2 billion in unspent account balance sitting in their customer’s rewards account. So it acts like an interest-free bank and the money sits there so Starbucks has already increased revenue before the customer has placed their order. But this article isn’t about Starbucks, it’s about Chipotle, and I don’t want to make Chipotle jealous, so I will now return to our regularly scheduled programming. It was not only a strong quarter for Chipotle, but it was also a strong year. Yahoo Finance reported, “In the full fiscal year of 2021, Chipotle's total revenue increased 26.1% to $7.5 billion. While same-store sales increased 19.3%, digital sales soared 24.7% and accounted for 45.6% of sales in all.” Yahoo further added, “The COVID-19 era trend of app-based ordering allowed the chain to up its forecast for new restaurants, saying there can be ‘at least’ 7,000 in North America, up from the prior target of 6,000.” All this positive news has led to a surge in shares of Chipotle, and as of this writing, company stock is trading at just under $1,600. Yes, you read that right! Chipotle isn’t a tech stock, so that is impressive! And there you have it. You might be on your way to your Chipotlane as we speak, and if so, you might want to consider buying shares of Chipotle along the way. Maybe with your new profits, you can afford that extra surcharge to add guac… --------------------------------------------------------------- For more quality content like this, and to learn more about the Money Moves team, visit us at [( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. 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