Business

Andrew Odlyzko, a professor of mathematics at the University of Minnesota, has a side hustle: he has become one of the world’s foremost experts on the history of speculative bubbles. Part of his time is spent at the Bank of England, where he photographs pages from thousands of handwritten ledgers which he later scours for clues about earlier episodes of excess. He hopes that generative artificial intelligence (AI) will one day take the drudgery out of the task. It is not lost on him that the latest speculative mania revolves around the technology itself. More

Yum Brands reported earnings that topped estimates but revenue that fell short of expectations for the second quarter.
KFC and Pizza Hut both saw their same-store sales shrink.
Only Taco Bell, the jewel of the company’s portfolio, reported same-store sales growth.

A sign is posted in front of a Taco Bell restaurant on May 01, 2024 in Richmond, California. 
Justin Sullivan | Getty Images

Yum Brands on Tuesday reported a mixed quarter as both Pizza Hut and KFC reported declining same-store sales.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $1.35 adjusted vs. $1.33 expected
Revenue: $1.76 billion vs. $1.8 billion expected

Yum reported second-quarter net income of $367 million, or $1.28 per share, down from $418 million, or $1.46 per share, a year earlier.
Excluding items, the company earned $1.35 per share.
Net sales rose 4% to $1.76 billion, fueled by new restaurant openings. Yum’s same-store sales fell 1% in the quarter as both Pizza Hut and KFC reported same-store sales declines of 3%.
KFC’s U.S. restaurants continued to struggle, with domestic same-store sales shrinking 5%. And although the chicken chain’s system sales picked up this quarter in China, its largest market, KFC’s overall international same-store sales fell 3%.
Pizza Hut’s U.S. same-store sales decreased 1%, while its international same-store sales declined 4%.

Taco Bell, the crown jewel of Yum’s portfolio, saw its same-store sales increase 5% in the quarter. The chain’s footprint is largely concentrated in the U.S., where its reputation for value has helped it weather the pullback in consumer spending.
On Wednesday, Yum announced plans to expand its rollout of artificial intelligence across Taco Bell drive-thru lanes to hundreds of its U.S. restaurants by the end of the year.
This story is developing. Please check back for updates. More

Mars is in talks to buy Kellanova, which owns Pringles, Cheez-It and Morningstar Farms, CNBC’s David Faber reported Monday.
Kellogg divided its snacking and cereal businesses into two separate companies less than a year ago.
Kellanova has a market value of nearly $25 billion.

Signage for Kellanova outside the New York Stock Exchange on Sept. 5, 2023.

Shares of Kellanova closed up 16% on Monday on reports of buyout interest.
M&M’s owner Mars is in talks to acquire the snacking company, CNBC’s David Faber reported, adding rival candy company Hershey is also potentially interested in buying the company.

Kellanova spokesperson Kris Bahner declined to comment to CNBC, citing company policy. Reuters first reported the Mars interest.
Ten months ago, Kellogg spun off its cereal business, naming the new company WK Kellogg in honor of its founder. The remaining business unit, renamed Kellanova, contained Pringles and Cheez-It and its North American frozen food unit, which includes Morningstar Farms.
Including Monday’s stock move, Kellanova has a market value of nearly $25 billion.

RBC Capital Markets analyst Nik Modi upgraded Kellanova shares to outperform before the markets opened on Monday, citing the potential deal as a catalyst.
After several years of raising prices, organic sales growth for food companies has slowed as consumers pull back their spending, making acquisitions more attractive.
Buying Kellanova would also strengthen Mars’ snacking options. While the family-owned company has large confectionary and pet businesses, its snacking portfolio has just a few brands, such as Kind.

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Fleet, a once “dirty” word, and business, in the automotive industry has turned into a multibillion-dollar battleground for U.S. automakers, led by Ford Motor.
Its “Ford Pro” operations have raked in about $18.7 billion in adjusted earnings and $184.5 billion in revenue since 2021.
Such results have led Wall Street to praise the fleet and commercial operations, including with analysts calling it a “hidden gem” and Ford’s “Ferrari,” referring to the highly profitable Italian sports car manufacturer.

2023 Ford Super Duty F-350 Limited

DETROIT — A once “dirty” word, and business, in the automotive industry has become a multibillion-dollar battleground for U.S. automakers, led by Ford Motor.
The Dearborn, Michigan-based automaker has turned its fleet business, which includes sales to commercial, government and rental customers, into an earnings powerhouse. And Ford’s crosstown rivals General Motors and Chrysler parent Stellantis have taken notice, restructuring their operations as well.

“There’s much more of an emphasis now on profitability and how fleet can help that,” said Mark Hazel, S&P Global Mobility associate director of commercial vehicle reporting. “[Automakers] are looking at how they strategically go about this. It’s been a very targeted approach with how they deal with fleets.”
Many fleet sales, especially daily rentals, have historically been viewed as a negative for auto companies. They are traditionally less profitable than sales to retail customers and are used by automakers at times as a dumping ground to unload excess vehicle inventories and boost sales.
But Ford has proven that’s not always the case by breaking out financial results for its “Ford Pro” fleet business. The operations have raked in about $18.7 billion in adjusted earnings and $184.5 billion in revenue since 2021.
Such results have led Wall Street to praise the business, as analysts have called it a “hidden gem” and Ford’s “Ferrari,” referring to the highly profitable Italian sports car manufacturer.

“No other company has Ford Pro. We intend to fully press that advantage,” Ford CEO Jim Farley said July 24 during the company’s second-quarter earnings call, in which Ford Pro was the dominant performer.

Fleet sales typically account for 18% to 20% of annual industrywide U.S. light-duty vehicle sales, which exclude some larger trucks and vans, according to J.D. Power.
Part of the opportunity in fleet sales comes from the aging vehicles on U.S. roadways. The average age of the 25 million fleet and commercial vehicles on American roads was 17.5 years last year, according to S&P. That compares with light-duty passenger vehicles at 12.4 years in 2023.
While commercial sales, which are viewed as the best fleet sales, are estimated to be slightly lower this year compared with 2023, both GM and Stellantis have recently redesigned and doubled down on such operations. However, neither reports such results out separately.
“Breaking apart the fleet channel, we see that Commercial sales have been the weakest. And zooming in further, there are just two [original equipment manufacturers] that appear especially challenged: STLA and, to a lesser extent, GM,” Wolfe Research said in an investor note Wednesday.
Meanwhile, Ford’s commercial volumes have increased a “strong” 7% this year compared with 2023, Wolfe said.

While fleet sales data isn’t as available as retail, Wolfe Research estimates Ford is by far the leader in such earnings at a forecast of $9.5 billion this year. That compares with North American operations at GM at $5.5 billion and Stellantis around $3.5 billion, Wolfe estimates.
S&P Global Mobility reports Ford has been the fleet leader for some time. Since 2021, Ford’s market share of new fleet vehicle registrations (categorized by businesses with 10 or more vehicles weighing under 26,000 pounds) has been about 30%. GM, meanwhile, had around 21%-22% during that time, and Stellantis about 9%.
GM, citing third-party data, claims it outsold Ford last year in a segment of fleet sales: commercial vehicles sold exclusively to businesses (with five or more vehicles) and not individual buyers.
Ford, meanwhile, said it counts “all customers who register their full-size, Class 1-7 truck or van under their business,” not just those with five or more vehicles.
Ford claims to lead sales of commercial vehicles, categorized as Class 1-7 trucks and vans, with a roughly 43% share of U.S. registrations through May of this year. That’s up 2.3 percentage points compared with a year earlier, the company said.

Ford Pro

The Ford Pro business is led by sales of the automaker’s Super Duty trucks, which are part of its F-Series truck lineup with the Ford F-150, and range from large pickups to commercial trucks and chassis cabs.
It also covers sales of Transit vans in North America and Europe, all sales of the Ranger midsize pickup in Europe, and service parts, accessories and services for commercial, government and rental customers.

Ford Super Duty trucks are seen at the Kentucky Truck assembly plant in Louisville, Kentucky, on April 27, 2023.
Joe White | Reuters

But automakers, including Ford, also see fleet operations as a key driver in other ways, including for electric vehicle sales, as well as reoccurring revenue options such as software and logistical services.
“This revenue has gross margins of 50-plus-percent which drives significant operating leverage and improved capital efficiency,” Farley said during the quarterly call. “The major part of this new software business is actually Ford Pro.”
Ford is aiming to achieve $1 billion in sales of software and services in 2025, led by its fleet and commercial business.
“Ford Pro is core to Ford, and there is potential upside on volumes as well as in software and service,” BofA’s John Murphy said Thursday in an investor note. “On software, Ford Pro accounts for ~80% of Ford’s software subscriptions with an attach rate of only 12%, which is projected to grow to 35%+ over the next few years.”

Ram, GM retool

As Ford touts its fleet business, its closest rivals have amped up their operations.
Chrysler parent Stellantis is relaunching its “Ram Professional” unit this year with goals of achieving record profitability in 2025 and, eventually, becoming the No. 1 seller of light-duty commercial vehicles, which exclude some larger vehicles.
Christine Feuell, CEO of Stellantis’ Ram brand, declined to disclose a time frame for achieving that target but said the automaker believes it can do so after completely revamping its operations to focus on better mainstreaming operations for customers and earnings growth through sales and new services.
“It’s a highly profitable business. Not only on the product side, but on the services side,” she told CNBC during a media event last week. “Software and connected services are really a significant growth opportunity for us as well.
“We’re a little bit behind Ford in launching those services, but we definitely expect to see similar kinds of growth and revenues generated from those connected services.”

2023 Ram Chassis Cab

Ram makes up about 80% of Stellantis’ U.S. fleet and commercial business. It has a new or revamped lineup of trucks and vans coming to market, plus a host of connected and telematics products to assist fleet customers. It also increased the availability of financing and lending for commercial customers.
“This year truly begins our commercial offensive,” Ken Kayser, vice president of Stellantis North American commercial vehicle operations, said during the media event. “2024 is a foundational year for our brand, as we look to build momentum into 2025.”
GM isn’t sitting idle either. It has revamped its fleet and commercial business. It launched “GM Envolve” last year, its overhauled fleet and commercial business focused on fleet sales, digital telematics and logistics for commercial customers.
Sandor Piszar, vice president of GM Envolve in North America, said the Detroit automaker views the business as a competitive advantage not just to sell vehicles but to create reoccurring revenue and relationships with businesses.

2021 GMC Sierra HD pickup

GM Envolve, formerly known as GM Fleet, reorganized the automaker’s business to be a one-stop shop for fleet customers — from sales and financing to fleet management, logistics and maintenance.
“GM Envolve is a critically important piece of General Motors business. It’s a profitable business,” he told CNBC earlier this year. “We think it is a competitive advantage in the approach we’re taking in this consultative approach of a single point of contact and coordinating the full portfolio that General Motors has to offer.”
GM and Stellantis declined to disclose the earnings and profitability of their fleet businesses.

EV goals

GM Envolve includes the company’s EV commercial business BrightDrop, which was folded back into the automaker last year instead of it acting as a subsidiary. It didn’t accomplish the growth GM had expected, but EVs have an opening for automakers’ fleet and commercial sales.
“BrightDrop is a great opportunity for General Motors and for GM Envolve,” Piszar said, citing all-electric vans specifically for last-mile deliveries as well as small local businesses. “There’s a lot of use cases and as we ramp up production and get customers to try the vehicle that’s a key piece of our model.”
Unlike retail customers, many fleet and commercial customers have predefined routes or schedules that could accommodate EVs well because they drive locally in a region and could charge overnight when electricity costs are lower.

Brightdrop EV600 van
Source: Brightdrop

S&P Global reports EV startup Rivian Automotive led the U.S. in all-electric cargo van registrations last year, roughly doubling Ford, its closest competitor, at No. 2.
While the upfront investment is high, automakers have argued the eventual payback could be worthwhile for some businesses.
All three of the legacy Detroit automakers are touting such advantages to their fleet customers, while still offering traditional vehicles with internal combustion engines.
Stellantis and Ford also have started highlighting their portfolios of different powertrains such as hybrids and plug-in hybrid electric vehicles as adoption of EVs has not occurred as quickly as many had expected.
Ford last month announced plans valued at about $3 billion to expand Super Duty production, including to “electrify” Super Duty trucks.
“We’ve gone to, on all of our commercial vehicles, a multi-energy platform so we will offer customers the choice that we think no other competitor will have,” Farley said during the earnings call. “We believe we will be a first mover, if not the first mover, in multi-energy Super Duty.”
— CNBC’s Michael Bloom contributed to this report. More

The “godfather” of GM’s modern day Corvettes, Tadge Juechter, retired Wednesday after roughly 47 years with the automaker, including 31 years devoted to Corvette.
CNBC interviewed Juechter, 67, ahead of his retirement, touching on his career as well as the business of Corvette, including plans for an all-electric version and the potential of spinning off the brand and for an SUV.

2025 Chevrolet Corvette ZR1 Coupe with ZTK Performance Package.

DETROIT — Tadge Juechter’s first “taste” of Corvette working at General Motors was to research whether there were enough Americans who could afford a new high-performance model of the famed sports car, known as the ZR1, back in 1985.
Nearly 40 years later, not only are there enough people to afford such a vehicle, but GM’s new 2025 Chevrolet Corvette ZR1 stands as something of a coup de grace for Juechter, who retired Wednesday after roughly 47 years with the Detroit automaker.

The so-called “godfather” of the modern Corvette retired roughly a week after helping to introduce the new 2025 Corvette ZR1 — the most powerful and fastest version of the car ever produced.
“One thing all the great Corvettes of recent years and decades have had in common is you. Your knowledge, your skills, your hard work, your passion,” GM President Mark Reuss told Juechter when revealing the vehicle. “Thank you for making Corvette the glorious American sports car it remains. Thank you for making our company better.”

GM President Mark Reuss (left) on stage with Tadge Juechter, retiring Corvette executive chief engineer, during the reveal of the 2025 Chevy Corvette ZR1 on July 25, 2024.
Screenshot

Reuss announced last month that all 2025 Corvettes and beyond will feature a silhouette profile of Juechter’s head etched in window locations and the front tunnel reinforcement panel beneath every Corvette 
CNBC interviewed Juechter, 67, ahead of his retirement, touching on his career as well as the business of Corvette, including plans for an all-electric version and the potential of spinning off the brand and for an SUV.

Electric Corvette

GM has said an all-electric Corvette is coming, but it hasn’t given a time frame. Last year, the automaker introduced a hybrid version of the car called the E-Ray.

Juechter wasn’t inclined to disclose any details of an upcoming Corvette EV, but he believes the E-Ray proves GM can successfully electrify Corvette.
“Electrification can be a wonderful contributor to cars. I embrace efficiency. … We’re passionate about efficiency in everything that we do,” he said. “Efficiency makes a good sports car, too. So, I think electrification is just another technology, and we have to figure out how to play that technology in a way that resonates with our customers.

2024 Chevrolet Corvette E-Ray hybrid sports car

“E-Ray is the first step. We think long term, you know, decades long term. Yes, General Motors committed to 100% electrification, and it’s our job as engineers to figure out what’s the way to get there. We’re businesspeople, too. We have to bring our customers with us.”
Juechter said there’s been some “natural push back” to electrified Corvettes from the sports car’s fan base.
“We’re hoping maybe the E-Ray warms them to maybe this electrification thing’s not so bad,” he said.

Corvette spinoff and SUV

Wall Street analysts have said GM could better leverage the Corvette brand by expanding models and, to an extent, sales. In late 2019, Morgan Stanley analyst Adam Jonas said a Corvette sub-brand could be worth between $7 billion and $12 billion.
That has raised questions around whether Corvette would be better spun off from parent GM.
But Juechter doesn’t necessarily believe that’s the way to go.
“I don’t know if we need to spin off. I mean, Corvette’s at the heart of Chevrolet. It’s a pure business play. If you’ve got this brand equity, you can just keep it at home or you can choose to try to monetize it and put it outside.
“General Motors historically hasn’t done that. We embrace our important franchises, and this is a really important franchise,” he said.

Tadge Juechter, retiring Corvette executive chief engineer, during the reveal of the 2025 Chevy Corvette ZR1 on July 25, 2024.
Screenshot

Regarding leveraging the brand for future products such as an SUV, which has been under consideration for several years, that’s a little different, Juechter said, declining to confirm that any such plans or considerations exist.
“How you leverage it. That’s a question for the future. You see the models we’re rolling out. We’re making the maximum of this mid-engine architecture. And, you know, I’ve made no secret I work on EVs, too, and trying to bring some of the performance spirit into the EV space. How that gets applied in the future and how it gets branded, that’s a story for another day,” he said.
The concept of a performance car brand producing a SUV or crossover would have been blasphemous years ago, but several brands such as Porsche, Lamborghini and even Ferrari have done so as consumer preference has moved away from the traditional car model.

Favorite Corvette

Juechter has been a part of four separate generations of Corvette – from the fourth-generation ZR1 to the new mid-engine, eighth-generation of the sports car.
The first Corvette he purchased for himself was the sixth-generation 2006 Corvette Z06.
“It’s hard to pick a favorite. It’s like what’s your favorite child. Actually, it’s harder than who’s your favorite child. Anyway, I won’t get into parenting, but every one of these cars we pour our heart and soul into and they all have their specialness about them.
“I don’t know. I can’t pick one. If I’m forced to pick one, I say money talks. I bought that Z06. I put my own money down on that car. … That car was very special to me,” Juechter said.
Juechter said he wasn’t planning on purchasing the Corvette, but he saw a “fully decked out one” coming off the line at the Corvette plant in Bowling Green, Kentucky, and said that he had to have it.

2020 Chevrolet Corvette

He has since sold that car and last year purchased an eighth-generation Corvette Stingray convertible as a “retirement car,” given he won’t be getting any free Corvettes for testing.
“I’ve never been a convertible guy, but it’s my wife and my touring car — like cross-country touring car. I’m not going to track it. It’s going to be my daily driver,” he said. “If you just have a daily driver, a cruiser, a Stingray is pretty sweet.”

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Sustainable diapers brand Kudos is set to launch in 375 Target stores nationwide as it looks to disrupt the legacy consumer products industry.
Kudos, founded by “Shark Tank” alum Amrita Saigal, makes diapers that are 100% lined with cotton and made with other degradable materials like sugarcane and trees.
The diapers are more absorbent than competitors like Pampers Pure Protection, Huggies Special Delivery and Honest diapers, according to independent testing conducted by Diaper Testing International. 

Kudos diapers founder Amrita Saigal with her daughter
Courtesy: Kudos

Throughout modern history, parents have only had one real option when it comes to disposable diapers: plastic.
The single-use products are typically made with fossil fuels like petroleum and can take hundreds of years to break down, making them the third-largest consumer item in U.S. landfills, according to the Environmental Protection Agency. 

Plus, they’re not as breathable as other materials, which could make incidents like diaper rashes more common. 
Still, plastic diapers from mega brands like Procter & Gamble-owned Pampers and Kimberly-Clark-owned Huggies continue to dominate the market. Amrita Saigal, founder and CEO of Kudos, is looking to change that. 
The Massachusetts Institute of Technology graduate, mechanical engineer and “Shark Tank” alum developed a sustainable diaper that uses some plastic, but is 100% lined with cotton and incorporates other degradable materials like sugarcane and trees, she tells CNBC. 
Later this month, it’ll be the first diaper of its kind to land in retail stores when it launches in approximately 375 Target locations nationwide. 
“I am so excited to partner with Target to make history as the first 100% cotton-lined disposable diaper to hit retail shelves,” Saigal said in an interview with CNBC. “It’s just a really big deal for us, especially because Target does not carry many brands.”

Kudos Diapers
Courtesy: HatchMark Studio

In the three years since its launch, Kudos has raised more than $6 million in funding. It closed a $3 million round last month with investments from Precursor Ventures, Xfund and Oversubscribed Ventures. 
In the last 12 months, it’s sold more than 20 million diapers and grown sales by more than 100%.

Disruption through innovation 

Saigal says she’s long been fascinated by consumer packaged goods and has spent her career figuring out ways to redesign everyday products, like sanitary pads and diapers, in her bid to disrupt an industry long dominated by corporate superpowers.
Her goal? Reduce the globe’s reliance on fossil fuels by building out new supply chains and developing sustainable products that are just as effective – if not better – than competitors. 
“I’m not launching a product that is not at par or better than Pampers,” said Saigal. 
“Are there eco-friendly alternatives? Yes, but they don’t perform and when it comes to a diaper, we cannot have something that doesn’t perform. You have one blowout, one leak, your parents are already sleep-deprived. They need things that work. They’re not willing to compromise performance for eco-friendly.” 
After three years of research and development, Saigal developed a diaper that can absorb far more fluid than competitors like Pampers Pure Protection, Huggies Special Delivery and Honest diapers, according to independent testing conducted by Diaper Testing International. 

Pampers didn’t return a request for comment. Honest declined comment.
A spokesperson for Kimberly-Clark, which owns Huggies, told CNBC it could not comment because it had not seen the study conducted by Diaper Testing International.
Saigal also developed a proprietary “DoubleDry” technology that brings two layers to the diaper instead of one, which allows it to wick away moisture. 
“If you were just to take out the plastic and replace it with cotton, your diaper would fail miserably, because what would happen is your baby would pee and all the urine would just pool, and then your baby’s butt would be wet,” said Saigal. “How do you quickly wick away that urine and poop and then pull it through the layers of the diaper and then evenly disperse it so your baby’s bottom feels dry. So that’s really what our innovation is.” 
Kudos is far smaller than its mightier competitors, but Saigal said its size has made the business uniquely positioned to build out new cotton supply chains and help suppliers grow alongside the company.
“For a company like P&G to do this, you’re talking … hundreds of millions of dollars in order to reconfigure their equipment to be able to do it … it’s really hard with their existing supply chains to be able to allow natural materials to actually work in their current process,” said Saigal, who worked for P&G as a design and manufacturing engineer after graduating from MIT.
Even sourcing natural materials for use instead of plastics would be challenging for larger companies because of their scale, Saigal said. Suppliers like cotton farmers tend to have buyers and partners locked in before they grow the requested materials, and since there isn’t yet mass demand for cotton from diaper makers, those supply chains don’t really exist yet at scale, she said.
As more and more smaller brands work with natural material suppliers to develop new supply chains, Saigal hopes that big brands will adopt natural materials over plastic more widely, which could reduce the price of those materials and in turn, make plastics more expensive. 
“When do you really get mass adoption of natural materials? The reality is, when natural materials become cheaper than plastic,” she said. 

Diaper economics 

Kudos faces a daunting landscape of scale.
Buzzy brands that start out by selling directly to consumers and then make their way into retail can face difficulties because of the high cost of inventory and onerous payment terms that come with it. 
Hello Bello, a hypoallergenic, sustainable diaper brand founded by celebrity couple Kristen Bell and Dax Shepard, filed for bankruptcy in October as it struggled to develop its supply chain after it began selling in retailers like Walmart. 
Over the last few years, a number of other consumer product companies and direct-to-consumer brands have faced similar fates after coming up in a funding environment that prioritized growth over profitability.
“In the heyday of DTC, it was like, ‘Don’t worry about the unit economics now, right?’ Like, just top-line growth, top-line growth, top-line growth, and then once you’re at $100 million, $200 million in revenue, then let’s figure out how to make this profitable,” said Saigal, who founded her company in 2021 and secured funding from “Shark Tank” host Mark Cuban and guest Shark Gwyneth Paltrow in 2023. 
“I don’t think that model works anymore,” she continued. “It’s like grow slower, but have the unit economics work from day one. I think the brands that are going to be successful now have to have a very, very tight lock on their numbers and their unit economics from the beginning.” 
In the year ahead, Saigal’s No. 1 priority for her business is to reach profitability and to get there, she’s keeping her team lean and being strategic with the capital she’s using to pay for inventory ahead of her launch into Target. She’s also had to toe a fine line when it comes to pricing. Her products are more expensive to make than her competitors’, but if the price is too high, she risks alienating potential buyers. 
Currently, parents can buy Kudos for between 41 cents and 70 cents per diaper, depending on the size. That compares with a box of Pampers Pure Protection, which runs between 34 cents and 75 cents per diaper, according to a listing on Target.com. 
“We are a little bit more expensive just because our raw materials are more expensive, but I’ve tried to keep it as minimal as possible,” said Saigal. “I care so much about being premium, but accessible. That is like exactly what I want to do, so that we are accessible to as many people, and cleaner materials are not out of reach.”
Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank,” which features Mark Cuban as a panelist. More

Viewership for the Summer Olympics in Paris so far has been blowing past the 2021 Tokyo Games, and the opening ceremony scored a bigger audience than Rio did in 2016.
Hip-hop artist and entertainer Snoop Dogg’s role in the Paris Olympics has been a big part of the draw — and is generating a lot of social media buzz.
Snoop Dogg, whose first role in the Olympics was a highlight show with Kevin Hart in 2021, has been growing his relationship with NBC.
Snoop Dogg will also be a new judge on “The Voice” this fall.

Snoop Dogg attends the Artistic Gymnastics Women’s Qualification on day two of the 2024 Paris Olympic Games at Bercy Arena in Paris on July 28, 2024.
Arturo Holmes | Getty Images Sport | Getty Images

Millions of viewers in the U.S. are tuning into the Summer Olympics in Paris — and many of them are getting a big dose of Snoop Dogg as part of the experience.
Beginning with the opening ceremony, the five-day total audience delivery average was 34 million viewers, combining daytime and primetime coverage, up 79% from the 2021 Tokyo Olympics, according to an NBC Sports release.

Executives of Comcast’s NBCUniversal — the TV and streaming broadcaster of the Games in the U.S. — have been touting not only the success of their production, but also of the celebrities and personalities employed as part of the coverage, namely Snoop Dogg.
The hip-hop artist turned sports commentator and entertainer has been on the sidelines at the Games in Paris, talking to athletes and their families, trying out sports with Olympic stars and taking a crack at analysis.
Molly Solomon, NBC’s executive producer of the Olympics, referred to Snoop Dogg as an “ambassador of happiness” during a press call this week.
“We’ve been pleasantly surprised by his popularity, but you never ever underestimate Snoop Dogg,” said Solomon, calling out his “wonderful mix of swagger and positivity and just the charisma and vibes are so positive.”

Snoop Dogg carries the Olympic flame during the last stage of the Olympic torch before the opening ceremony in Seine-Saint-Denis, France, on July 26, 2024.
Victoria Valdivia | Hans Lucas | AFP | Getty Images

Snoop Dogg, who joined the Olympic torch run, has generated considerable buzz on social media — from clips of him cheering alongside Olympians’ family members to snapping numerous selfies with athletes and those on the sidelines, including tennis legend Billie Jean King.

He has spurred some viral moments, including by cheering alongside U.S. swimmer Caeleb Dressel’s wife and baby son when Team USA won its first gold medal and dancing in the crowd as the U.S. women’s gymnastics team responded from the mat.
His swimming lesson from Olympic legend Michael Phelps also floated around the internet.
“The first time I ever actually watched him on Olympic coverage was the track and field trials back in June,” said Krissy Birdsall, a student at the University of Wisconsin-Madison, adding she has been watching more of the Games due to the favorable time difference in Paris. “He was pretty entertaining. And he kind of brought a different perspective into the world of track and field.”

Pumped-up audience

NBCUniversal had been banking on the success of the Paris Olympics, and Snoop Dogg, for the past few years.
The rapper, once known for hits such as “Gin and Juice,” got his first spin at the Olympics in 2021 when he hosted a highlight show with comedian Kevin Hart on Peacock. While viewership for the Tokyo Games that year was lackluster, and few live events aired on Peacock, their show captured the audience, with various clips going viral.

Snoop Dogg is interviewed at the beach volleyball event on day five of the 2024 Paris Olympic Games at Eiffel Tower Stadium in Paris on July 31, 2024.
Carl Recine | Getty Images Sport | Getty Images

“Snoop set the Olympic world on fire in Tokyo,” Solomon said in an interview with CNBC. The following year, NBC’s executives met with Snoop Dogg to discuss his future place in the Olympics broadcast, she said.
“He really wanted to go to the Olympic city, and tell the athletes’ story,” Solomon said.
Solomon and “Primetime in Paris” host Mike Tirico talked up Snoop Dogg’s work before the Games during a press call in July, noting his early arrival ahead of the opening ceremony and his relationships with athletes.
For his part, Snoop Dogg made his prep work sound a bit simpler.
“My preparation for prime time is being me,” he said during the press call, adding he was “sliding into the practice facilities with different teams. … I’m one of those individuals that likes to get involved.”
Ahead of the Games, Snoop Dogg was also present at the Olympic trials earlier this summer, and since then has popped up in various places. While Tirico, singer Kelly Clarkson and former National Football League star Peyton Manning led the opening ceremony, Snoop Dogg was interviewing American athletes while donning the same Ralph Lauren blazer as them.
“Snoop Dogg is one of those people that can totally just transcend and be versatile,” said Kendall Wright, a student at Northwestern University.
He has been decked out in USA gear, including an NBC jacket emblazoned with his name and T-shirts with the faces of star athletes such as Coco Gauff and Kelly Cheng.

Snoop Dogg cheers the USA team for women’s gymnastics at the 2024 Paris Olympics.
Wally Skalij | Los Angeles Times | Getty Images

“It’s a sporting event, but it’s not your traditional audience,” John Fortunato, a communications and media management professor at the Fordham University Gabelli School of Business, said of the Olympics. “You see him at the various events, and he has so much personality that he can relate to the audience as a fan. That’s really where his appeal is.”
Snoop Dogg is sticking with NBC. Fans will get more of him on NBC and Peacock this fall when he joins the coaching seats on “The Voice.”
“I understand why Snoop Dogg and Alex Cooper have been looped into the Olympics, especially for the millennial and Gen X audience,” said Jenna Mindes, a human resources professional from Woodcliff Lake, New Jersey.
She is a big fan of gymnastics and went to the Olympic trials in Minneapolis this summer. However, she has not loved the inclusion of celebrities in the Olympics.
“I think for gymnastics and maybe less mainstream sports, big fans are kind of gatekeepers who take their sports very seriously … and celebrities entering the conversation almost seems to dilute the sport,” she said.
There has been “a lot more pop culture, celebrities and a lot more Snoop than we’ve had before,” said NBC Sports President Rick Cordella, adding that this has helped to popularize the Paris Olympics.

Snoop Dogg poses for photos with American sportscasters Bob Costas (L) and Al Michaels at beach volleyball on day five of the 2024 Paris Olympic Games at Eiffel Tower Stadium in Paris on July 31, 2024.
Carl Recine | Getty Images Sport | Getty Images

Meanwhile, the “Gold Zone” show on Peacock, which shows multiple live sports at once and is led by Scott Hanson of “NFL Red Zone” in a similar format, has become a big hit, as has the watch-along show led by Alex Cooper, host of the podcast “Call Her Daddy.”
“We’ve really taken a different path at how we approach this,” Cordella said of Peacock’s Olympics strategy, which has been a big part of the viewership numbers.
The success of the Paris Olympics follows the lowest-ever rated Summer Olympics in Tokyo in 2021, as well as the lesser-watched Winter Olympics in Beijing in 2022.
The Tokyo Olympics faced myriad issues. They were delayed a year due to the Covid-19 pandemic; no family and fans were present at the events; few, if any, events were available on streaming service Peacock; and there was a severe time difference for U.S. viewers.
Since July 26, the Paris Olympics audience has been on a roll, according to NBC Sports. The opening ceremony, which took place on the Seine River, had 28.6 million viewers, compared to 17.9 million for Tokyo and 26.5 million for the 2016 Rio Games, making it the most-watched Opening Ceremony since 2012 in London. 
During a recent interview with NBC Nightly News’ Lester Holt, Snoop Dogg said he never expected to play this role “in his wildest dreams,” especially after watching the Olympics when he was a child.
“I’m the biggest kid in the crowd,” he told Holt of his cheering on the U.S. athletes at the games.
Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032.

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DraftKings is planning a tax on consumers in states with the highest sports betting tax rates, as the company looks to boost profit.
Starting January 1, it will implement a gaming surcharge on winning bets in states with multiple betting operators and where the tax rate is above 20%.
The announcement came as the sports betting operator released its second-quarter earnings, which marked the company’s first-ever profitable quarter as a public company.

Budrul Chukrut | SOPA Images | Lightrocket | Getty Images

Mobile betting powerhouse DraftKings is planning a tax on consumers in states with the highest sports betting tax rates, as the company looks to boost profit.
The company announced Thursday that starting next year, it will implement a gaming surcharge on winning bets in states with multiple betting operators and where the tax rate is above 20%. That includes Illinois, New York, Pennsylvania and Vermont.

“We decided that the best course of action is to do what really every other industry [does] — whether it’s hotels, taxis — whatever else you buy generally has some kind of tax,” DraftKings CEO and co-founder Jason Robins told CNBC.
The announcement came as the sports betting operator released its second-quarter earnings, which marked the company’s first-ever profitable quarter as a public company. DraftKings reported revenue of $1.1 billion, roughly in line with consensus estimates, according to LSEG.
Fears of tax hikes in gaming pressured DraftKings stock and other betting companies such as FanDuel back in May, when Illinois approved a tax hike on sports betting revenue. The sliding tax rates impose 40% levies on companies with the largest adjusted gross revenue. New York and New Hampshire each maintain 51% tax rates on sports betting companies.
In a letter to shareholders Thursday, Robins said the new surcharge will be nominal for the customer. In Illinois, for example, it will amount to a low- to mid-single-digit percentage of net winnings.
“If you made a $10 bet to win $20, you would pay like 30 cents,” Robins said, citing an example.

Arrows pointing outwards

An illustration of the DraftKings app, introducing a new gaming surcharge.
DraftKings

DraftKings is believed to be the first U.S. operator to implement a tax on the winnings of a bettor. Robins said he weighed it heavily and hopes it causes states to think twice about the tax rate.
“I do think that if states start to realize that above a certain level, we can’t invest in our product and customer experience in the way that we need to … it might make them think differently about it,” he added.
He is also considering customers’ response. “We’re not going to hide it,” Robins said. “Obviously, we could see some customers drop off, and player betting activity, if they don’t like it.”
Robins says DraftKings is not including the new tax in its guidance.
The company raised revenue guidance to a range of $5.05 billion to $5.25 billion from previous guidance in the range of $4.80 billion to $5 billion. The updated guidance equates to 38% to 43% year-over-year growth.
But the sports betting giant lowered its 2024 adjusted EBITDA guidance to between $340 million and $420 million, down from previous guidance of $460 million to $540 million.
The company reported a profit during the second quarter for the first time, posting net income for the three-month period that ended June 30 of $63.8 million, or 10 cents per share, compared to a net loss of $77.3 million, or 17 cents per share, a year earlier. 
Analysts surveyed by LSEG expected a per-share loss of 1 cent for the period.
Revenue rose to $1.1 billion, up 26% from $874.9 million a year earlier. The company said the revenue increase was driven primarily by continued healthy customer engagement, expansion into new jurisdictions and the acquisition of lottery app Jackpocket.
“The overperformance that we are seeing with customer acquisition, the launch of Washington D.C., our expectation for Jackpocket to deliver positive EBITDA next year as well as underlying trends with our existing customers and our performance on the handle side, all should offset the Illinois tax increase next year,” Robins said on the company’s earnings call. “So even if we don’t get any benefit from the fee, we will see still $900 million to $1 billion in adjusted EBITDA next year.”
More than 30 states now allow some form of sports wagering, and many of them permit mobile and online betting. DraftKings is live with mobile sports betting in 25 states and Washington, D.C. The company’s iGaming division is live in five states.
The company said so far this year, 10 more jurisdictions have either introduced legislation to legalize mobile sports betting or introduced a bill that may result in a mobile sports betting referendum during an upcoming election.
DraftKings also announced its first ever $1 billion share repurchase program. The company has a market cap of about $14 billion.

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