🐔 Kroger’s rotisserie moment

…and China’s rebound just isn’t bounding   Macaroni, salad, or macaroni salad? (Eva Hambach/Getty Images)   [Sponsored by]( Yesterday’s Market Moves   Dow Jones 35,308 (+0.07%) S&P 500 4,490 (+0.58%) Nasdaq 13,788 (+1.05%) Bitcoin $29,373 (+0.33%) Dow Jones 35,308 (+0.07%) S&P 500 4,490 (+0.58%) Nasdaq 13,788 (+1.05%) Bitcoin $29,373 (+0.33%) Hey Snackers, The billionaire-brawl saga may end with a whimper: Mark Zuckerberg said Elon Musk isn’t serious about their much-hyped [cage fight]( and that it’s “time to move on.” Elon replied by calling Zuck “chicken.” Stocks popped yesterday, with the techy Nasdaq pulled up partly by AI chipmaker [Nvidia](. Today investors have their eyes on retail-sales numbers. Rotisserie Grocery stores are expanding prepared-meal offerings to grab restaurant market share Table for two… by the frozen section. With prices rising faster at restaurants than at grocery stores since early spring (7.1% vs. 3.6% YoY in July), consumers are eating out less. Grocers like [Kroger]( Giant Eagle, and [Costco]( are seizing the opportunity to take a bite out of restaurants’ lunch by [ramping up]( their meal offerings (picture: ready-to-eat salads and wraps). 40% of diners say not wanting to cook is the reason they choose restaurants over grocery stores, and grocers are taking note. - Deli 2.0: Kroger, the US’s largest grocery operator, has expanded its prepared-meal section, offering entrées bundled with sides and drinks. Giant Eagle said it’ll triple its # of prepared meals this fall. [Walmart]( has taken things further with in-store ghost kitchens. - Pushing the cart: Prepared-food sales grew 12% last year to over $23B, led by lunch favs like soup and chili, as workers RTO’d in droves. Convenience vs. experience… Faced with competition from grocers, restaurants are launching meals that would be a pain to re-create at home. [Taco Bell]( made its Grilled Cheese Burrito (cheese baked on top) permanent, and KFC introduced hand-breaded nuggets. [Chipotle]( is testing grills that it says will make a sear that can’t be easily done at home. [McDonald’s]( and [Burger King]( have invested in making restaurant interiors more appealing and speeding up orders. Still, it may prove difficult to beat a premade meal placed right by pantry staples. THE TAKEAWAY You can’t trademark convenience…The fast-food industry has succeeded thanks to what it offers: cooked food fast. But there’s nothing to stop grocers from encroaching on the combo meal’s turf. Restos padded their profits for a long time as customers kept splurging on dining, but they could take a hit as convenient alternatives pop up at the checkout aisle. Sponsored by Ladder Heads up: you probably need more life insurance coverage. “Apply for more life insurance” might even be on your to-do list—right below “clean the gutters.” While many employers offer life insurance coverage up to 1-2x your salary, the truth is, that likely isn't enough. Financial experts often recommend something closer to 10x your salary. [Ladder]( makes it easy to apply for term life insurance. You can do it online in as little as 5 minutes, with no medical exam, only health questions asked, for up to $3M in coverage. The policies are uniquely flexible and adjustable as your needs change so that you’re never overpaying for more coverage than you need. [Apply for instant coverage now]( Unbound 8 months into China’s reopening, the big comeback still hasn’t come back Recovery still loading… Many were expecting a huge rebound in China after the world’s second-largest economy unwound its zero-Covid policy this year. Following years of lockdowns, Chinese consumers were expected to come roaring back with open wallets. That hasn’t been the case: China’s reopening started off as meh and has only gotten worse. - Growth = slow. China’s second-quarter GDP growth was disappointing, decelerating from an underwhelming pace in Q1. - Unemployment = high. Youth unemployment in China hit a record high in June, with 21% of 16- to 24-year-olds in cities without work. - Exports = low. Last month, China’s global exports sank at their steepest pace since early 2020 as Western consumers pulled back on Made-in-China goods. The stimulus isn’t stimulating… Remember when the US tried to save the Covid-plunged economy with trillions in stimulus and low interest rates? The effort worked almost too well, supercharging consumer demand along with inflation. China’s also trying to revive spending through stimulus, but strangely, it recently tipped into deflation (falling prices). If consumers start to expect falling prices, it could weigh on demand even further. The deflation is a red flag not just for China but for the global economy. THE TAKEAWAY China’s recovery is bigger than China… US multinationals were hoping that China’s reopening would give them a boost as Americans started pulling back at home. But this year lots of companies have felt the effects of China’s slump: most recently, tractor titan [Caterpillar]( and chemical giants [DuPont]( and [Dow]( [reported]( hits to their China earnings. Yet consumer-focused companies like [Apple]( [Starbucks]( and [Marriott]( saw significant growth in the country last quarter. What else we're Snackin' - [Grounded]( Airlines including [Spirit]( and [JetBlue]( grounded planes and said they may need to cancel flights after aerospace company Pratt & Whitney recalled ~1.2K engines. The disruption could add to an already busy summer travel szn. - [OnChain]( A judge revoked Sam Bankman-Fried’s bail — sending him to jail — and said the FTX cofounder likely tried to interfere with witnesses in his upcoming trial. SBF faces fraud charges following FTX’s collapse. - [Ketchup]( [Kraft Heinz]( is swapping in a new CEO after the brand’s shares fell 15% this year. Price hikes helped Kraft pad profits, but demand for its brand-name staples has fallen as consumers turn to cheaper alts. - [OhWhale]( Japan’s refusing to participate in a key Indo-Pacific trade deal because the US added language against whaling. The deal aims to strengthen the US’s economic ties with 13 Asian nations as China relations sour. - [#ForYou]( ByteDance is reportedly working on a way for users to sync content from its Insta clone, Lemon8, to its much more popular app, TikTok. Lemon8 could be a fallback for ByteDance if TikTok is banned in the US. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day The median price of a starter home in the US in June was $243K — up 45%+ from prepandemic [Read more]( Tuesday - US retail sales - Earnings expected from Cava, Home Depot, and Tencent Music Authors of this Snacks own shares of: Apple, Kraft Heinz, Nvidia, Starbucks, Walmart, and Yum Brands *Advertiser's disclosure: Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers – for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products. 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