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Chili’s bets on dips and deals have more than paid off...
October 31, 2024 View Online | Sign Up | Shop

Morning Brew

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🎃 Good morning, and Happy Halloween! Across the US, kids will go trick-or-treating tonight in search of that epic sugar high…including in Des Moines, Iowa. Here’s why that’s notable: Des Moines hasn’t allowed trick-or-treating on Halloween since 1938. That year, Iowa’s capital banned the candy quest to crack down on vandalism, and ever since, the youth of Des Moines have gone door to door in their costumes on the night before Halloween, known as Beggars’ Night.

This year, though, bad weather was forecast for Wednesday night, so city officials decided to forego tradition and allow kids in Des Moines to trick-or-treat with the rest of the country.

Cassandra Cassidy, Molly Liebergall, Matty Merritt, Holly Van Leuven, Neal Freyman

MARKETS

Nasdaq

18,607.93

S&P

5,813.67

Dow

42,141.54

10-Year

4.266%

Bitcoin

$72,171.27

Reddit

$116.05

Data is provided by

*Stock data as of market close, cryptocurrency data as of 5:00pm ET. Here's what these numbers mean.

  • Markets: Stocks made like Florida and stayed mostly flat yesterday, as investors gather the new economic data dropping throughout the week before jumping to conclusions. Reddit soaked up the limelight following its report on Tuesday that it had turned its first-ever profit.
 

FOOD & BEV

Chili’s is on fire as other restaurant chains go cold

iPhone illustration in front of a Chili’s burger Illustration: Anna Kim, Photo: Getty Images

In the booth of casual restaurants that are doing well, Chili’s is sitting alone. Shares of the chain’s parent company soared as much as 9% yesterday after it released quarterly earnings that prove Chili’s bets on dips and deals have more than paid off.

Brinker International, which gets 90% of its revenue from Chili’s, reported a 14% increase in same-store sales in Q3—the second consecutive quarter of double-digit growth—and a 6.5% increase in foot traffic. Its success stands in stark contrast to the rest of the casual dining industry that’s on track to see a record number of chains declare bankruptcy this year.

What’s working?

Social media ads and promotions for Chili’s special items and deals have successfully lured customers to its doors:

  • The chain is extending its run of the Big Smasher, a $10.99 competitor to the McDonald’s Big Mac that launched in April and has been a “significant” traffic driver, according to CEO Kevin Hochman.
  • The TikTok famous Triple Dipper, which lets patrons pick three apps and three sauces for $19.99, accounts for 11% of Chili’s total revenue—and its sales have increased 70% since last year.
  • Sometimes success is as easy as a $6 margarita, or a $10 option if you want to swap out the house tequila for Don Julio.

It’s a very different case across the street. Restaurants you find next door to Chili’s feel like they are in the Bad Place as growth in spending at dining and drinking outposts continues to decline below the pre-pandemic rate. TGI Fridays suddenly closed 50 locations this week after reports that it’s preparing to file for bankruptcy. Red Lobster declared bankruptcy in May, and Hooters is struggling against “pressure from current market conditions.”—CC

   

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WORLD

Tour de headlines

The Los Angeles Dodgers celebrate winning the world series Elsa/Getty Images

The Los Angeles Dodgers won the World Series. The City of Angels vanquished Gotham in Game 5 and clinched the title 4–1. A lot happened in the short sweep. Dodgers star Shohei Ohtani separated his shoulder while trying to steal a base in Game 2 and struggled with the injury for the rest of the series. In Game 4, two rowdy Yankees fans interfered with a catch made by Dodgers outfielder Mookie Betts, ripping the ball out of his glove (they were ejected). And last night, a series of defensive errors by the Yankees in the fifth inning helped the Dodgers come back from a five-run deficit: They won 7–6. While LA is taking home the Commissioner’s Trophy, New York has a consolation prize: The NYC mayor’s office estimated that each postseason game played in New York generated up to $25 million each.

Russia fines Google $20.5 decillion over YouTube content moderation. The silly-sounding number reflects that Russia is big mad at the video platform for failing to restore the YouTube accounts of state media outlets, which the tech company considers pro-Moscow propaganda channels. The fine, which is “20” followed by 33 digits, increases by $1 million every day it goes unpaid. Digital trends reported that $20.5 decillion is equivalent to all the money on Earth multiplied by 23,809,523. Russia might also still be smarting after YouTube suspended its AdSense program in the country over the summer, meaning creators there can no longer monetize their content with ads.

A flurry of earning reports dropped. And like the movie Frosty Returns, they featured some famous characters but didn’t add much to the plot. Meta reported record revenue but missed on user growth. Microsoft beat revenue expectations thanks to the AI-driven demand for its Azure cloud platform. Starbucks had a pretty meh report but CEO Brian Niccol revealed that the chain would stop charging extra for nondairy milk. DoorDash reported its first operating profit since the pandemic. And, despite crypto getting renewed interest as of late, Coinbase missed on revenue and earnings.—HVL

TRAVEL

You’ll now get your money back for botched flights

Departures board illustration Anna Kim

You have one less thing to worry about the next time you’re stuck at the airport: A new US rule went into effect this week that requires automatic refunds for passengers whose flights get canceled or significantly delayed.

No powers of persuasion needed. The onus is now on airlines to give you back your money in full—you no longer have to request a refund—using your original payment method. Your dollars must be returned to you within one week if you paid with a card, and within 20 days if you used cash or points.

On the books: The new rule standardizes carriers’ refund policies by officially defining “significant” delays as three hours for domestic flights and six hours for international, according to the Department of Transportation. Additionally:

  • You’re entitled to a full refund if the airline changes your arriving/departing/connecting airport, adds a connection, or switches you onto a plane that’s less accessible if you have a disability.
  • Airlines must recompense baggage fees for lost luggage (you still have to file a report) and for services like wi-fi or seat selection if they were paid for but not provided.

If this rule had been in place last year, it could’ve cost United, American, and Delta more than $1 billion each in refunds, according to the travel publication Upgraded Points.—ML

   

Together With Bonobos

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GEOLOCATION

Investigation tracks heads of state through Strava

President Joe Biden speaking at port. Anna Rose Layden/Getty Images

The app famous for shoving the 18 miles your high school friend’s fiancé runs every Saturday in your face might actually pose a national security risk. An investigation by French newspaper Le Monde was able to track the locations of world leaders like Vladimir Putin, Emmanuel Macron, and Joe Biden through their bodyguards’ Strava posts.

Journalists said they found 26 US agents, 12 individuals from the French equivalent of the Secret Service, and six Russian Federal Protection Service members on the popular fitness tracking app and discovered sensitive locations thanks to their data.

  • Journalists were able to postliminarily identify the hotel President Biden stayed at in San Francisco during talks with Chinese President Xi Jinping in 2023 because one US Secret Service agent went jogging a few hours before Biden showed up.
  • The paper also found that a number of Putin’s bodyguards run near a billion-euro palace the Russian president has previously denied owning.

French and US officials issued statements saying the data would be looked into, but they weren’t too worried about security risks.

Big picture: This isn’t the first time Strava data seemed at odds with government security measures. In 2018, the Pentagon restricted use of the app and other location trackers on military bases around the world after it found Strava’s Global Heat Map could expose personnel locations in warzones.—MM

   

STAT

Prime number: 10 million fish eaten in 4 hours

A school of capelin Paul Souders/Getty Images

Red Lobster wishes it could put up those numbers. In reality, Atlantic cod ate that much capelin while migrating along Norway’s coastline. Scientists from MIT were able to document an event of that magnitude for the first time thanks to a sonic-based wide-area imaging technique, according to their research, published yesterday in Nature Communications Biology. The field hailed it as the largest predation event ever recorded in terms of number of fish involved and the size of the area over which it occurred. You may be wondering: Are there any capelin left? Yes. Thankfully, the cods’ lunch tab only accounted for 0.1% of the capelin in that region.—HVL

NEWS

What else is brewing

  • The State Department has received almost 500 reports of US-supplied weapons being used by Israel to cause excessive civilian casualties in Gaza.
  • Flash floods in Spain have killed at least 95 people and caused major damage.
  • Super Micro stock fell more than 30% during yesterday’s trading session after its auditor, Ernst & Young, resigned due to disagreements.
  • Archaeologists in Poland reconstructed the face of a 400-year-old “vampire”
    buried with a sickle across her neck.

RECS

To do list Thursday

Monster mash: The music industry hopes Halloween can be the new Christmas.

Caulk and float the wagon: An Oregon Trail movie is in development at Apple.

Eat the cookie: Turns out snacking may have health benefits.

Listen: There’s nothing spookier than a micromanager, unless they’re actually good?

Enjoy business news again: Morning Brew Daily has the wittiest and smartest takes on business news. Check it out wherever you get your podcasts.

GAMES

The puzzle section

Brew Mini: To celebrate Halloween, we have a very special crossword for you. It’s known as a Schrödinger puzzle, which means there are two valid ways to complete it. Do yourself a favor and check it out.

Three Headlines and a Lie

Three of these headlines are real and one is faker than a church basement haunted house. Can you spot the odd one out?

  1. Giant African rats join crackdown against illegal wildlife trade
  2. Tractor Supply announces ‘chicken feed’ Zyn flavor
  3. Fired employee allegedly hacked Disney World’s menu system to alter peanut allergy information
  4. Travis, Jason Kelce voted ‘Sexiest Podcast Hosts’ by People Magazine fans

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ANSWER

We made up the one about Tractor Supply.

Word of the Day

Today’s Word of the Day is: recompense, meaning “to give something to by way of compensation (as for a service rendered or damage incurred).” Thanks to Aaron from Normal, IL, for the generous suggestion. Submit another Word of the Day here.

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