Latest / What the Flux / Guzman y Gomez's $100 million burrito buy back | Costco and Aldi take on Coles | Salesforce may have a data breach

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Guzman y Gomez's $100 million burrito buy back | Costco and Aldi take on Coles | Salesforce may have a data breach · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Brett and I'm Just and it's Friday, the tenth
• 0:09
  Speaker 2: of October.
• 0:09
  Speaker 3: Boy, Australia's free to air television ad market has dropped
• 0:12
  Speaker 3: almost ten percent so far this year. According to Guideline SMI.
• 0:16
  Speaker 3: It was an eighteen percent drop alone in the free
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  Speaker 3: to air ad market in August compared to last August.
• 0:22
  Speaker 3: So it's no surprise to hear about the Seven West
• 0:25
  Speaker 3: and Southern Cross Media merger last week.
• 0:26
  Speaker 2: Desperation flucksav We are back and kicking and give them
• 0:30
  Speaker 2: a fifty bucks today for the fastest fingers and the
• 0:32
  Speaker 2: smartest person in our weekly quiz at Quick six. If
• 0:35
  Speaker 2: you want to win fifty bucks to kick off your
• 0:37
  Speaker 2: weekend on a high, make sure you download the Flux app,
• 0:39
  Speaker 2: have your notications turned on, and if you're the first
• 0:41
  Speaker 2: person to add them correctly, money could be yours.
• 0:43
  Speaker 3: Three revolutionary stories today, Juzzy boy, Let's do it for
• 0:47
  Speaker 3: our first Guzman Igomez has launched a one hundred million
• 0:50
  Speaker 3: dollar share buy back as its sales continue to pick
• 0:53
  Speaker 3: up for the Big Burrito cooking a bit.
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  Speaker 2: Of confidence in their kitchen now being in So what
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  Speaker 2: is the story here?
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  Speaker 3: So Gyg is an Australian fast food chain that was
• 1:00
  Speaker 3: founded in Sydney in two thousand and six, and since
• 1:02
  Speaker 3: then it's grown into Australia's very own Mexican food empire.
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  Speaker 3: YEP listed on the ASX in twenty twenty four and
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  Speaker 3: its share price boomed on its listing day, up thirty
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  Speaker 3: six percent and man at.
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  Speaker 2: Its peak, GYG was valued at nearly four billion dollars.
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  Speaker 3: I must say it is quite hard to resist a
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  Speaker 3: drive through burrito Gluten free of course, be man always,
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  Speaker 3: but it hasn't been all smooth sailing though for GYG.
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  Speaker 1: Now.
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  Speaker 3: In the past financial year, GYG failed to meet the
• 1:26
  Speaker 3: market's earnings expectation.
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  Speaker 2: It's share price slid from forty five bucks down to
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  Speaker 2: just twenty four dollars.
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  Speaker 3: But it looks like they might be turning things around
• 1:33
  Speaker 3: with a reported eighteen point six percent rise in the
• 1:36
  Speaker 3: most recent quarterly sales.
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  Speaker 2: So now Gg's announced plans for one hundred million dollar
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  Speaker 2: share buy back over the next twelve months.
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  Speaker 1: Big So what is the key learning here?
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  Speaker 2: A share buyback is when a company buys back its
• 1:46
  Speaker 2: own shares from the stock market, and why would they
• 1:49
  Speaker 2: do that well? With fewer shares on the market, each
• 1:51
  Speaker 2: share gets a boosting value.
• 1:53
  Speaker 3: So it's one way a company can give back value
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  Speaker 3: to shareholders without paying a dividend.
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  Speaker 2: Plus it's signals to the market the company's feeling confident
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  Speaker 2: about their share price being currently undervalued.
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  Speaker 3: Yeah, because hey, we think we're worth more than the
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  Speaker 3: markets giving us credit for.
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  Speaker 1: So we want to slice yep.
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  Speaker 2: And GG is just one of manyuzzy companies that are
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  Speaker 2: announcing share buybacks this earning season.
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  Speaker 3: In fact, just last month, Telstra announced a one billion
• 2:15
  Speaker 3: dollar share buy back.
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  Speaker 2: CSL announced the seven hundred and fifty million dollars.
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  Speaker 3: Share by back, and analysts show that when buybacks are announced,
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  Speaker 3: the company tends to outperform the broader share market by
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  Speaker 3: about ten percent in the following twelve months.
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  Speaker 2: So b man, it seems like GG is betting on
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  Speaker 2: their future burrito sales to boost the value of their company.
• 2:31
  Speaker 3: For our second story, Costco and Audi a chipping away
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  Speaker 3: at Australia's major supermarkets with more than seventeen and a
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  Speaker 3: half billion dollars in annual sales.
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  Speaker 2: The price war is on and the winners are US.
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  Speaker 1: Yes, so tell me all.
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  Speaker 2: So.
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  Speaker 3: Costco is a US warehouse style retailer that was founded
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  Speaker 3: in nineteen eighty three.
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  Speaker 2: It's known for its membership model and it's bulk buy bargains,
• 2:50
  Speaker 2: but also random stuff like huge TVs, or diamonds or
• 2:54
  Speaker 2: four hundred dolls of toilet paper now.
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  Speaker 3: Costco first opened in Melbourne in two thousand and nine
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  Speaker 3: and has generated more than third twenty billion dollars in
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  Speaker 3: Aussie sales since then.
• 3:02
  Speaker 2: And now be man. A new tax starter from the
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  Speaker 2: ATO shows that Aldi and Costco generated a combined seventeen
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  Speaker 2: and a half billion dollars in sales across Australia in
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  Speaker 2: f I twenty four.
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  Speaker 3: Audi made about twelve and a half billion, while Costco
• 3:14
  Speaker 3: tipped the scales just over five.
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  Speaker 1: Billion for the financial year.
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  Speaker 2: And to put that into context, b Man Cole's had
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  Speaker 2: annual sales of thirty nine billion dollars in that financial.
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  Speaker 1: So not quite at Coal's levels, but getting there.
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  Speaker 2: And with Audi and Costco coming hard for ossie consumers,
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  Speaker 2: it's forced Coals and Woolies to be more price competitive.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: Competition keeps everybody on us YEP.
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  Speaker 3: For years, Colson Woolies dominated Australian grocery shopping with very
• 3:38
  Speaker 3: little real challenge.
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  Speaker 2: But when global discount players like Audi and Costco come in,
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  Speaker 2: it forces them to rethink pricing and value.
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  Speaker 3: And Jessie, wait, we know that Woolies has had a
• 3:47
  Speaker 3: bit of a mayor over the past few years.
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  Speaker 2: Yep, It's share prices dropped forty four percent over the
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  Speaker 2: past two years.
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  Speaker 1: Alone, and it's forced both Woolies and Coals to act.
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  Speaker 2: In fact, Coals and Woolies have narrowed their price gap
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  Speaker 2: with Audi by almost thirty percent since mid twenty twenty three.
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  Speaker 3: We'd been talking chicken, mince milk, frozen pizza.
• 4:05
  Speaker 2: And ultimately it means that consumers like us are the
• 4:07
  Speaker 2: biggest winners.
• 4:08
  Speaker 3: For our third and final story, Salesforce, the global cloud
• 4:12
  Speaker 3: based software giant, has found itself caught in a major
• 4:15
  Speaker 3: cybersecurity storm.
• 4:16
  Speaker 2: Not what they need, all their customers need right now, BMN,
• 4:19
  Speaker 2: so tell me what's going on.
• 4:20
  Speaker 3: So. Salesforce is one of the biggest customer relationship management.
• 4:24
  Speaker 2: Platforms, also known as CRMs if you're on the acronym terms.
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  Speaker 3: It's grown from one of the early San Francisco startups
• 4:30
  Speaker 3: of nineteen ninety nine to a two hundred and thirty
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  Speaker 3: billion US dollar company, and.
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  Speaker 2: It's used by more than one hundred and fifty thousand
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  Speaker 2: companies globally to send emails, to store data and engage
• 4:40
  Speaker 2: with their customer.
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  Speaker 3: And these companies store a whole range of sensitive customer data.
• 4:43
  Speaker 3: In Salesforce, we'd be talking names and emails, IDs, even
• 4:46
  Speaker 3: purchase histories. Now a hacker claims to have breached Salesforce
• 4:50
  Speaker 3: systems and stolen data from thirty nine major companies.
• 4:53
  Speaker 2: Companies like Toyota and Google, chanel Ikeia McDonald's, as well
• 4:57
  Speaker 2: as our very own Quantus not the Big Queue, and
• 5:01
  Speaker 2: the group is demanding Salesforce cough up a ransom by
• 5:04
  Speaker 2: today US time, or it will leak the stolen data
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  Speaker 2: to the dark Web and Juzzyboy.
• 5:09
  Speaker 3: If Salesforce continues to refuse to pay a ransom, the
• 5:11
  Speaker 3: data of millions of customers worldwide could soon be exposed online.
• 5:16
  Speaker 2: So what is the key learning here?
• 5:17
  Speaker 3: In today's digital world, data has become extremely valuable but
• 5:21
  Speaker 3: also extremely vulnerable. Yeah, even if a company locks down
• 5:23
  Speaker 3: its own systems, it's only secure as its weakest link.
• 5:27
  Speaker 1: In these cases, it's often third parties.
• 5:29
  Speaker 2: Cloud providers, call centers, or software partners like Salesforce.
• 5:32
  Speaker 3: Putting it simply, when they get hacked, your customer data
• 5:35
  Speaker 3: can become collateral damage.
• 5:36
  Speaker 2: And this isn't the first time this year that Quantus
• 5:38
  Speaker 2: customers have been collateral damage in a third party breech yep.
• 5:41
  Speaker 3: In July this year, Quantus told its customers that the
• 5:44
  Speaker 3: data of five point seven million frequent flyers have been
• 5:47
  Speaker 3: accessed by cyber criminals the weeklink.
• 5:49
  Speaker 2: That time a call center operator who was tricked into
• 5:51
  Speaker 2: opening access to Quantus as Salesforce system.
• 5:53
  Speaker 1: So juzzy boy.
• 5:54
  Speaker 3: Assuming Salesforce does not pay a ransom, it could mean
• 5:57
  Speaker 3: a whole lot of angry customers.
• 5:58
  Speaker 2: Customers who trust selles Force with some of its most
• 6:01
  Speaker 2: sensitive data. Plus up. If you want to kick up
• 6:03
  Speaker 2: the weekend with fifty bus in your pocket and on
• 6:05
  Speaker 2: a high, all you need to do is be in
• 6:07
  Speaker 2: the Flux app at the right time and be the
• 6:09
  Speaker 2: fastest person to answer three business or finance questions correctly.
• 6:12
  Speaker 2: To make sure to download the Flux app, have your
• 6:13
  Speaker 2: notifications turned on your chance to win quick six today.
• 6:16
  Speaker 1: Thanks for listening and we'll see you on Monday.