Latest / What the Flux / Myer’s major decision | Rokt makes staff millionaires | Wendy’s plan to conquer Australian burgers

Transcript

Myer’s major decision | Rokt makes staff millionaires | Wendy’s plan to conquer Australian burgers · What the Flux

• 0:05
  Speaker 1: This is what the flux.
• 0:06
  Speaker 2: I'm Brett and Justin's Monday, the twentieth of January. We
• 0:10
  Speaker 2: are a.
• 0:11
  Speaker 1: Back baby, Fox fam.
• 0:12
  Speaker 3: We've been well rested over the summer period and we
• 0:15
  Speaker 3: are back with the latest and the greatest business news
• 0:17
  Speaker 3: for twenty twenty five. And here is our one hundred
• 0:20
  Speaker 3: percent guarantee. Listening to the pod will make you smarter
• 0:23
  Speaker 3: than your boss and you'll never feel out of the
• 0:26
  Speaker 3: loop at dinners with friends or families.
• 0:28
  Speaker 2: Very important or it work.
• 0:29
  Speaker 3: Juzzy boy, this could be the juiciest news to come
• 0:31
  Speaker 3: back to. TikTok has given its last viral wave to
• 0:34
  Speaker 3: its one hundred and seventy million US users after it
• 0:37
  Speaker 3: was officially banned over the weekend because it refused to
• 0:40
  Speaker 3: sell its US operations to.
• 0:42
  Speaker 1: An American company.
• 0:43
  Speaker 3: Huge, But only time will tell if it will actually survive.
• 0:46
  Speaker 2: Interesting and be man. What is hilarious is that millions
• 0:49
  Speaker 2: of Americans and now downloading another Chinese TikTok dupe called
• 0:53
  Speaker 2: red Oat. It's now the top app in the whole
• 0:56
  Speaker 2: US app store. It's good to be back with the
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  Speaker 2: latest business news.
• 1:00
  Speaker 1: Ironic stories today. Juzzy boy.
• 1:02
  Speaker 3: Let's do it for our first Maya's share price dropped
• 1:05
  Speaker 3: more than eighteen percent last week after it warned of
• 1:08
  Speaker 3: a major decline in its earnings for the first five
• 1:10
  Speaker 3: months of FY twenty five.
• 1:12
  Speaker 2: Not exactly the kind of post holiday news that investors
• 1:15
  Speaker 2: were hoping for. Me man, so tell me more.
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  Speaker 3: Well, Jusie boy will know Maya as one of the
• 1:19
  Speaker 3: og Australian department stores, the.
• 1:21
  Speaker 2: Department store who's been battling neck and neck with David
• 1:23
  Speaker 2: Jones for over one hundred and twenty years. And be man,
• 1:26
  Speaker 2: we know it's been a bit of a rollercoaster ride
• 1:28
  Speaker 2: for Maya's investors over the past fifteen years.
• 1:30
  Speaker 3: Since it listed at a two point two billion dollar
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  Speaker 3: valuation in two thousand and nine.
• 1:34
  Speaker 2: But let's be honest, the rollercoaster has mainly been experiencing.
• 1:37
  Speaker 3: Drops recently, though there were signs of a bit of
• 1:40
  Speaker 3: a glow up with a new CEO and plans to
• 1:42
  Speaker 3: merge with apparel brands.
• 1:44
  Speaker 2: That's the owner of Portman's in JJ's and other brands
• 1:46
  Speaker 2: as well.
• 1:46
  Speaker 3: But now juzzy Boy Meyers said its earnings before interest
• 1:49
  Speaker 3: in tax dropped by twenty five percent compared to last
• 1:52
  Speaker 3: year for the most recent five months to December.
• 1:55
  Speaker 2: Next minute, it's share price got smashed by eighteen percent.
• 1:58
  Speaker 3: But the retailers that my I also planned to buy,
• 2:01
  Speaker 3: like Dotti and JJ's Just Jean's Portman's, they.
• 2:04
  Speaker 2: Also got whacked and then man, this puts extra pressure
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  Speaker 2: on the merger, which will go to a shareholder vote
• 2:09
  Speaker 2: this Thursday.
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  Speaker 1: Beig core. So what is the key learning here?
• 2:12
  Speaker 2: Big public mergers need big shareholder buy in.
• 2:15
  Speaker 3: When a publicly listed company wants to tie them up
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  Speaker 3: with another business, the board can't just swipe right.
• 2:20
  Speaker 1: It needs shareholder approval.
• 2:21
  Speaker 2: And in this case, Maya needs more than fifty percent
• 2:24
  Speaker 2: of shareholders to vote yes on the deal.
• 2:26
  Speaker 3: And while the board of directors can try to strongly
• 2:28
  Speaker 3: encourage shareholders to vote yes, they can't force them.
• 2:31
  Speaker 2: For example, me men. Back in two thousand and six,
• 2:33
  Speaker 2: a group called Airline Partners Australia made an offer to
• 2:36
  Speaker 2: acquire Quantus and the Quantas board supported the deal, but
• 2:40
  Speaker 2: they only managed to get forty six and a half
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  Speaker 2: percent of shareholders to approve and the deal didn't end
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  Speaker 2: up going through.
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  Speaker 1: So juzzy boy.
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  Speaker 3: Given the underperformance of Maya and Apparell brands in the
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  Speaker 3: last five months.
• 2:50
  Speaker 1: There may be some question marks for shareholders.
• 2:52
  Speaker 2: For our second story. Rocked, the Australian e commerce tech company,
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  Speaker 2: has seen its valuation jumped to five point six billion
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  Speaker 2: dollars after its latest capital raise, with some staff taking
• 3:02
  Speaker 2: millions off the table.
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  Speaker 3: One of those companies you probably have seen but never
• 3:06
  Speaker 3: really heard of, so tell me more.
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  Speaker 2: Just founded in Australia back in twenty twelve with the
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  Speaker 2: goal to optimize online shopping transactions.
• 3:13
  Speaker 3: Know when you buy ozopen tickets online from let's say
• 3:16
  Speaker 3: ticket Master yep, and once the payment has been made,
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  Speaker 3: you see a pop up offering you forty percent off
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  Speaker 3: Hello Fresh or twenty bucks off your.
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  Speaker 1: Next higher car yep.
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  Speaker 2: Highly annoying.
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  Speaker 1: That is Rocked.
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  Speaker 3: They present customers with products or services from other brands
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  Speaker 3: after that moment when you purchase something and jesiboit. Rock
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  Speaker 3: saw its revenue jump by more than forty percent last
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  Speaker 3: year to six hundred million US dollars, and it's.
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  Speaker 2: Also grown to more than fifteen countries.
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  Speaker 3: So now it's raised three hundred and thirty five million
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  Speaker 3: US dollars in its latest private capital raise before at
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  Speaker 3: IPO's in twenty twenty six.
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  Speaker 2: At least that's the plan.
• 3:48
  Speaker 3: Uh huh, rock CEO claims they didn't need to raise money,
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  Speaker 3: but they did it to give investors employees some liquidity.
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  Speaker 2: So what is the key learning here?
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  Speaker 3: A secondary capital raise isn't about new funding. It's about
• 3:58
  Speaker 3: giving employees and a chance to cash in on their
• 4:01
  Speaker 3: juicy juicy shares you see Beman.
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  Speaker 2: Typically when companies raise money, they issue brand new shares
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  Speaker 2: to bring in fresh funds for company growth or expansion.
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  Speaker 3: But a secondary capital raise doesn't create new shares.
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  Speaker 2: Nope, it gives existing shareholders an opportunity to sell their
• 4:15
  Speaker 2: shares to other investors.
• 4:17
  Speaker 3: In this case with Rocked, the company doesn't directly receive
• 4:20
  Speaker 3: any cash now.
• 4:21
  Speaker 2: But it's a way for early employees and investors to
• 4:24
  Speaker 2: turn their shares into cash.
• 4:26
  Speaker 3: So a secondary raise solves this by giving them another
• 4:29
  Speaker 3: way to make their shares liquid and the man.
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  Speaker 2: We've also seen other private tech companies like Camva help
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  Speaker 2: facilitate their own one point six billion US dollar secondary
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  Speaker 2: share sale.
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  Speaker 3: And Stripe did a one billion US dollar secondary share
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  Speaker 3: sale as well.
• 4:41
  Speaker 2: Or before they hit the big IPO tables.
• 4:44
  Speaker 3: For our third and final story, Wendy's, the US burger
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  Speaker 3: behemoth is flipping its way back to Australia with plans
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  Speaker 3: to open hundreds of new stores over the next decade.
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  Speaker 2: Sounds delicious, so go on.
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  Speaker 1: Well, jesiboit.
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  Speaker 3: Wendy's is the burger chain founded in the US all
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  Speaker 3: the way back in nineteen sixty nine.
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  Speaker 2: It's the burger chain with the logo of a redheaded
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  Speaker 2: girl with pigtails and freckles.
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  Speaker 3: But don't be fooled by Wendy's innocent look, jusie boy,
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  Speaker 3: don't get fooled. It's actually the third biggest fast food
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  Speaker 3: chain on the planet.
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  Speaker 2: Behind its bit arrivals Makid's and Burger Kings.
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  Speaker 3: Now important to note this Wendy's is different to the
• 5:18
  Speaker 3: hot dog and doughnut Wendy's that's been operating in Australia
• 5:21
  Speaker 3: for at least a couple of decades.
• 5:22
  Speaker 2: But now be Man Flinn Group, which is the company
• 5:24
  Speaker 2: that owns Wendy's license in Australia. They've anounced plans to
• 5:27
  Speaker 2: relaunch Wendy's here in Australia.
• 5:30
  Speaker 3: They bring it back after a short stint in the
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  Speaker 3: nineteen eighties when they had eleven stores.
• 5:34
  Speaker 2: In fact, Beman Flinn plans to open hundreds of Wendy's
• 5:37
  Speaker 2: burger joints around Australia over the next decade.
• 5:39
  Speaker 3: But what works in the US doesn't necessarily work in Australia.
• 5:43
  Speaker 2: So true, So what is the key learning here?
• 5:45
  Speaker 3: A winning recipe in one market doesn't guarantee success in
• 5:49
  Speaker 3: other markets around the.
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  Speaker 2: World, especially when you're not taking into account the unique
• 5:52
  Speaker 2: characteristics of that local market.
• 5:54
  Speaker 3: You see, JUSI boy, Plenty of American fast food giants
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  Speaker 3: have strutted into Australia, swanned on in with big dreams
• 6:01
  Speaker 3: of dominating that burger Grayle.
• 6:03
  Speaker 2: And these brands have copypasted they're winning US formula into Australia.
• 6:07
  Speaker 2: We had Carl's Junior, which was the US burger chain.
• 6:09
  Speaker 1: They said they would have three hundred stores by twenty
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  Speaker 1: twenty six.
• 6:12
  Speaker 2: But at the last count, nine days later, twenty eight stores.
• 6:15
  Speaker 3: Or what about My Guys five Guys Burgers and Fries,
• 6:17
  Speaker 3: which launched in Australia in twenty twenty one, At last.
• 6:20
  Speaker 2: Count there were only five stores, more.
• 6:22
  Speaker 1: Like five stores Burgers and Fries.
• 6:24
  Speaker 2: In fact, the most successful burger stores recently have been
• 6:27
  Speaker 2: the locally grown ones like Grill.
• 6:28
  Speaker 1: And don't forget Noose's very own Betty's burgers.
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  Speaker 2: So Wendy's we need to add a little Australian touch
• 6:34
  Speaker 2: if they really want it to work. Yep, man, it
• 6:36
  Speaker 2: is very good to be back on the pod, chatting
• 6:38
  Speaker 2: with you business news and making the Fluxam a whole
• 6:41
  Speaker 2: lot smarter each and every day at Foxam. If you
• 6:43
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• 6:44
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• 6:51
  Speaker 1: Thanks for listening and we'll see you on Wednesday.