Latest / What the Flux / El Jannah - the billion-dollar chicken chain | Google takes on Nvidia | Harvey Norman's international success

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El Jannah - the billion-dollar chicken chain | Google takes on Nvidia | Harvey Norman's international success · What the Flux

• 0:05
  Speaker 1: This city is bottom flux.
• 0:06
  Speaker 2: I'm brattan justin a It's Monday, the first of December.
• 0:09
  Speaker 1: Does boyd?
• 0:10
  Speaker 3: The taxman and tax woman are at it again, this
• 0:12
  Speaker 3: time pointing the finger at trusts.
• 0:14
  Speaker 1: Yep.
• 0:15
  Speaker 3: The ATO says that white collar professionals and tradees who
• 0:17
  Speaker 3: use family trust to reduce tax are in their hitting zone.
• 0:20
  Speaker 1: This upcoming tax season.
• 0:22
  Speaker 2: Always a scary time to be in the ato's line
• 0:24
  Speaker 2: of vision. B Man, true man. Did you know in
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  Speaker 2: twenty twenty four some big Australian companies aid zero dollars
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  Speaker 2: in tax despite earning billions in revenue?
• 0:32
  Speaker 1: I was somewhat aware.
• 0:34
  Speaker 2: Well, how does that make sense? It doesn't really, but
• 0:36
  Speaker 2: we break it down in the Flex apps with one
• 0:38
  Speaker 2: of the great videos explaining how and why these multi
• 0:42
  Speaker 2: billion dollar companies pay zero dollars tax in Australia. So
• 0:45
  Speaker 2: if you want to learn more, make sure to download
• 0:46
  Speaker 2: the Flex app and check out our latest.
• 0:48
  Speaker 3: Video three Spectacular Stories Today, Jesy boy, let's do it
• 0:51
  Speaker 3: for our first el. Janna, the cult favorite charcoal chicken chain,
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  Speaker 3: is set to be snapped up for almost one billion
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  Speaker 3: dollars by a US private equity giant.
• 1:00
  Speaker 2: Talk about hatching an Empire, b Man, what is going
• 1:02
  Speaker 2: on here?
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  Speaker 1: All right?
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  Speaker 3: So el Janna started in nineteen ninety eight as a
• 1:05
  Speaker 3: single shop in Granville, New South Wales, run by migrants
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  Speaker 3: Andre and Carol Ester Fan.
• 1:10
  Speaker 2: The bee Man. Since then, el Janna has built a
• 1:12
  Speaker 2: cult following and a bit of a chicken religion.
• 1:14
  Speaker 3: Yeah, we're talking one store in nineteen ninety eight, five
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  Speaker 3: in twenty twenty and now fifty one stores in twenty
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  Speaker 3: twenty five.
• 1:20
  Speaker 2: In fact, Beman, el Janna makes one hundred thousand chickens
• 1:23
  Speaker 2: every single week. We're talking over three hundred million in
• 1:26
  Speaker 2: gross sales.
• 1:27
  Speaker 1: Now.
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  Speaker 2: Back in September this year, there were rumors swirling that
• 1:30
  Speaker 2: el Janna was looking to find a private equity.
• 1:32
  Speaker 3: Backup, and now US private equity firm General Atlantic has
• 1:35
  Speaker 3: acquired el Janna for almost one billion bucks.
• 1:37
  Speaker 2: And Benman and its new owners, el Janna plans to
• 1:39
  Speaker 2: open more than thirty more stores in the next twelve months.
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  Speaker 3: With the goal to chase down fast food chicken giants
• 1:45
  Speaker 3: like KFC and Red Rooster.
• 1:47
  Speaker 2: And the founding family of el Janna will keep a
• 1:49
  Speaker 2: meaningful shareholding as part of this deal.
• 1:51
  Speaker 3: Not surprising in a private equity rollover, yep, So what
• 1:55
  Speaker 3: is the key learning here? A private equity rollover is
• 1:57
  Speaker 3: when the seller of a company keeps a portion of
• 1:59
  Speaker 3: their ownership rather than taking the entire amount out in cash.
• 2:02
  Speaker 2: And be man. In private equity deals, founders are encouraged
• 2:04
  Speaker 2: to retain a rollover state. It aligns incentives between the
• 2:08
  Speaker 2: private equity firm and the founder who knows the business
• 2:10
  Speaker 2: best yep, the founder who understands the seasoning and the
• 2:13
  Speaker 2: secret source and the die hard customer base better than anyone.
• 2:16
  Speaker 1: And Josie Boite.
• 2:16
  Speaker 3: From a financial perspective, rollovers can create even bigger pay
• 2:20
  Speaker 3: days later.
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  Speaker 2: For example, if a founder sells seventy percent of the
• 2:23
  Speaker 2: business today hold's thirty percent for the next few years,
• 2:25
  Speaker 2: that remaining state can grow substantially as the business expense.
• 2:28
  Speaker 2: Sometimes the founder's rollover can exceed the initial payout and
• 2:31
  Speaker 2: be man. Given private equity firms like General Atlantic typically
• 2:34
  Speaker 2: hold onto companies for three to seven years, it means
• 2:37
  Speaker 2: a second pay day is often not too far away.
• 2:40
  Speaker 3: For our second story, Google is taking it up to
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  Speaker 3: Nvidia in the chip wars as it looks to sell
• 2:45
  Speaker 3: its own proprietary chips to Meta and as a result,
• 2:48
  Speaker 3: it shares one up four percent.
• 2:49
  Speaker 2: Googles officially entered the AI chip chat b man, So
• 2:52
  Speaker 2: what is going on here?
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  Speaker 3: Well, joseb Waite, we know that every tech company and
• 2:55
  Speaker 3: their dog are investing billions and billions into AI at
• 2:58
  Speaker 3: the moment, and.
• 2:59
  Speaker 2: Behind every a model that can write essays and write
• 3:01
  Speaker 2: emails is a very powerful AI chip.
• 3:04
  Speaker 3: But now Meta Who's in talks to spend billions buying
• 3:07
  Speaker 3: Google's own AI chips called TPUs for its data centers
• 3:10
  Speaker 3: starting in twenty twenty seven.
• 3:11
  Speaker 2: And they man, that's a bit of a plot twist,
• 3:13
  Speaker 2: considering Metas has already spent seventy two billion US dollars
• 3:17
  Speaker 2: on chips within Video just this year alone, and while Google.
• 3:20
  Speaker 3: Has been producing its own chips since twenty sixteen, this
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  Speaker 3: marks a big, big strategic shift yeap.
• 3:26
  Speaker 2: That's because Google previously kept their own chips, their TPUs,
• 3:29
  Speaker 2: exclusively inside their own data centers, and.
• 3:32
  Speaker 3: This deal could help Google claw away as much as
• 3:35
  Speaker 3: ten percent of in Video's annual revenue, which is worth
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  Speaker 3: billions huge.
• 3:38
  Speaker 2: So what is the key learning here?
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  Speaker 3: In Video might be the king of the AI chip
• 3:42
  Speaker 3: world right now, but the kingdom is beginning to feel
• 3:44
  Speaker 3: a little crowded right now.
• 3:46
  Speaker 2: In video is believed to control eighty five to ninety
• 3:48
  Speaker 2: percent of the entire semiconductor market.
• 3:51
  Speaker 1: It's giving real monopoly energy here.
• 3:52
  Speaker 2: Yeah, and that's pretty strong in a market that's also
• 3:55
  Speaker 2: grown rapidly in the last few years.
• 3:57
  Speaker 1: Which a boy with such lucrative deals.
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  Speaker 3: Many of the big tech company are also starting to
• 4:01
  Speaker 3: see the benefit of producing and selling their own AI
• 4:03
  Speaker 3: chips too. Google has TPUs, Amazon has Trainium, and Inferentia a.
• 4:09
  Speaker 2: Meta is also starting to develop their own in house.
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  Speaker 3: Chips as well, because these companies don't want to keep
• 4:13
  Speaker 3: paying in videos sky high prices.
• 4:15
  Speaker 2: And given these companies contribute more than fifty percent of
• 4:17
  Speaker 2: Invidious current revenue in videous customers and now also becoming
• 4:21
  Speaker 2: its competitors.
• 4:22
  Speaker 3: For our third and final story, Harvey Norman has seen
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  Speaker 3: its sales jump nine percent in the last quarter as
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  Speaker 3: its international growth pushes the business forward.
• 4:30
  Speaker 2: Nothing like a bit of Jerry Harvey spice to kick
• 4:32
  Speaker 2: off the retail season, BMN, so tell me more so.
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  Speaker 3: Harvey Norman is obviously the Australian retail giants selling pretty
• 4:37
  Speaker 3: much everything these days.
• 4:39
  Speaker 2: There's lounges, there's dining tables, at dish washers, laptops, giant TVs,
• 4:43
  Speaker 2: you name it, they've got it. Uh huh.
• 4:45
  Speaker 3: And despite the retail downturn, Harvey Norman reported a nine
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  Speaker 3: percent sales increase from July through to November compared to
• 4:51
  Speaker 3: the same time last year.
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  Speaker 2: Go, Harvey, go, I say, and where did the growth
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  Speaker 2: come from?
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  Speaker 1: B Man, very obvious places.
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  Speaker 3: Josey boy, I'm talking Slovenia and Croatia. Excuse me, yeah,
• 5:01
  Speaker 3: you heard me correctly, Harvy Norman. International stores are pretty
• 5:04
  Speaker 3: low key, but they're absolutely killing it. Sales in Slovenia
• 5:07
  Speaker 3: and Croatia are up twenty five percent.
• 5:08
  Speaker 2: And twenty two percent. Sales jump in the UK as well.
• 5:11
  Speaker 1: Pretty good or as they say in Croatia Verlo dobra.
• 5:16
  Speaker 2: So what is the key? Leading year?
• 5:18
  Speaker 3: Global diversification can become a powerful buffer for retailers.
• 5:21
  Speaker 2: Especially when different regions move through economic cycles at very
• 5:25
  Speaker 2: different speeds.
• 5:26
  Speaker 3: Harvey Norman's update showed international stores outperforming the Australian market
• 5:30
  Speaker 3: by a mile and be Man.
• 5:32
  Speaker 2: That kind of growth helps smooth out softer periods at
• 5:35
  Speaker 2: hope and for investors, this global mix becomes a sign
• 5:37
  Speaker 2: of resilience. In fact, they made Harvey Norman's share price
• 5:39
  Speaker 2: is up more than forty percent this year alone.
• 5:42
  Speaker 1: But Jesse Boy, not every international expansion goes according to plants.
• 5:45
  Speaker 2: Smiggle, for example, they had huge ambitions to become the
• 5:48
  Speaker 2: global stationary powerhouse.
• 5:50
  Speaker 3: Yeah, but in the twenty twenty five financial year, Smiggle's
• 5:52
  Speaker 3: global sales dropped over ten percent compared to the previous year.
• 5:56
  Speaker 2: So be man. If it's well executed and well timed,
• 5:59
  Speaker 2: a global state could be a real profit entiine foxam.
• 6:02
  Speaker 2: Imagine paying zero dollars in tax but making a billion
• 6:05
  Speaker 2: dollars in revenue. That is how some companies in Australia
• 6:08
  Speaker 2: have operated in twenty twenty four. We break it down,
• 6:10
  Speaker 2: including which companies paid zero dollars tax and how they
• 6:13
  Speaker 2: manage to do it all in the Flex app. So
• 6:15
  Speaker 2: if you want to learn more, make sure to download
• 6:16
  Speaker 2: the app and check it all out.
• 6:17
  Speaker 1: Thanks for listening and we'll see you on Wednesday.