🍟 McDonald’s “Calorie Curtain”

…from Coke to Starbs, American food giants exit Russia [Disclosures](   Crowds line up for the opening of Russia’s first McDonald’s in 1990 [Peter Turnley/Getty Images]   Yesterday’s Market Moves   Dow Jones 33,286 (+2.00%) S&P 500 4,278 (+2.57%) Nasdaq 13,256 (+3.59%) Bitcoin $41,958 (+8.28%) Dow Jones 33,286 (+2.00%) S&P 500 4,278 (+2.57%) Nasdaq 13,256 (+3.59%) Bitcoin $41,958 (+8.28%) Hey Snackers, Whoever named this vessel had foresight: polar explorer Ernest Shackleton’s ship “Endurance” has been [found]( 10K feet under Antarctic waters — 106 years after it sank. One archaeologist called it “the finest wooden shipwreck” he’d ever seen. It was another roller-coaster day for markets. Stocks rebounded, with the techy Nasdaq surging 3.6%, while oil dropped. Meanwhile, Russians have begun to [flee]( their country to avoid the sting of Western sanctions, and a Kremlin spokesman accused the US of waging an “economic war.” Canola McDonald’s and Coke pull out of Russia, as the “Calorie Curtain” falls on an already isolated country From crude oil to canola oil... A day after the US banned Russian oil imports, [McDonald's]( banned its oily food from the country. The Golden Arches is temporarily [shutting]( its nearly 850 locations in Russia, which makes up a tenth of its sales (not nothing). Other Big Foodies followed: [Starbucks]( is shuttering its Russian coffee shops, [Coke]( is suspending its Russia biz, and [PepsiCo]( is pulling some sodas out of the country (but will continue selling essentials like baby formula and milk). - Why they're pulling a Mosc-out: More than [300 companies]( have withdrawn from Russia to condemn the invasion of Ukraine. McD’s and other giants that hadn’t exited were facing pressure and criticism (think: [Twitter]( #boycotts). - Why it took so long: Fast-food operations are complex and provide livelihoods for thousands. McD’s will continue paying full salaries for its 62K Russian workers. Ditto Starbs. - Another reason: Fast-food chains generally don’t own most of their locations — they sell the rights to franchisees. That’s why [Yum Brands]( is closing only company-owned KFCs, and still hasn’t reached an agreement with franchisees to shut Pizza Huts. But while most global McD’s are franchised, 84% of its Russia locations are company-owned. The Silicon Curtain... Big Tech companies were some of the first to exit Russia, partly because it’s easier to shut down servers than restaurants. A few examples: [Netflix]( TikTok, and [PayPal]( have suspended their services, and [Apple]( and [Microsoft]( halted sales. THE TAKEAWAY The Calorie Curtain is symbolic… of the West-East decoupling. McDonald’s was one of the first American corporations to open its doors in Russia during the fall of the Soviet Union. Nearly [40K]( people lined up at McDonald’s in Moscow’s Pushkin Square on opening day, a symbol of capitalism’s triumph over communism. Thomas Friedman famously [said:]( No two countries that both have McDonald's have ever waged war against each other. Economic ties and trade relations can foster peace, but the era of “[food diplomacy]( is over. Curious Biden takes the first real step toward crypto regulation — and it’s boosting Bitcoin Uncle Sam is crypto-curious... and crypto CEOs are eager to answer his questions. Yesterday President Biden issued an [executive order]( calling for crypto regulation, signaling the federal government plans to take a more active role in regulating digital assets. Crypto-preneurs [applauded]( the news, and [Bitcoin]( prices jumped more than 8%. The order, unpacked: - Biden laid out six crypto goals: 1. protect investors; 2. keep markets stable; 3. curb crime; 4. stay globally competitive; 5. boost inclusion; and 6. innovate responsibly. - The #DigitalDollar isn’t dead: Biden also pushed regulators to explore a central bank digital currency. The Fed had already [outlined]( pros and cons of a digital dollar earlier this year. - Next up… homework. Biden asked the Fed, Treasury Department, and other agencies to study and report on their crypto plans by year’s end. The [ethereum]( in the room… Crypto has gotten too big to ignore. 40M Americans — about 12% of the population — have invested in crypto, the White House says (more than half of Americans are invested in stocks). Russia’s war on Ukraine has also raised concerns that Russia could use crypto to avoid sanctions, highlighting crypto’s growing geopolitical importance. Russia and China are among the 100+ countries developing their own digital currencies. THE TAKEAWAY Crypto has a “patchwork problem”... and federal oversight could solve it. It’s easier to have set rules coming from one direction than contradictory rules coming from 50 directions. Just ask the cannabis industry: a lack of federal regulation has prevented regional weed businesses from blooming into national brands. Specific crypto rules may not come into focus for months, but crypto companies are still stoked about Biden’s order because full federal regulation could eventually provide a clearer picture for how to do business. What else we're Snackin' - [Snip]( [Amazon]( said it plans to split its stock 20 to 1, and it approved a $10B buyback. The Zon follows in the footsteps of other big-tech gainers like [Apple]( and [Google]( which recently split shares. - [405]( The average price of a gallon of gas in California hit $5.44 on Tuesday, the highest in America. Now Gov. Newsom is considering giving CA’ers a tax rebate to ease the #PumpAnxiety of sky-high prices. - [Pill]( [Pfizer]( has started studying its Covid antiviral pill for treatment of high-risk children, and expects results by end of year. If they’re promising, it could become the first Covid treatment for kids under 12. - [Resurrection]( The computer virus comes free: LimeWire, the 2000s-era file-sharing site popular for pirated music, is returning as an NFT marketplace. It’ll focus on music-related tokens like demos and rare LPs. - [Swindler]( Tinder added a background-check feature to help swipers scan matches for red flags, as dating apps get more scrutiny over safety. Meanwhile, [Bumble]( shares popped 48% on an optimistic outlook for the year. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. The Snacks Daily Podcast Baby-blue hippie van, but make it electric. Volkswagen unveiled an electrified version of its iconic ’60s camper, but don’t expect to be heading to the Haight with it soon (ETA: two years). [Tune in]( to hear what Tesla’s Cybertruck and VW’s e-van have in common. Snack Fact Of the Day [Because of spiking metal prices, the value of the nickel in a US nickel is now worth more than a dime (#coinception)]( Thursday - Weekly jobless claims - February inflation data - Earnings expected from JD.com, Rivian, DocuSign, National Beverage, LegalZoom.com, and The Duckhorn Portfolio Authors of this Snacks own: Bitcoin, Ethereum, and shares of Starbucks, Amazon, Apple, Pfizer, Google, Netflix, Tesla, Twitter, and Microsoft ID: 2073988 Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. 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