Slop bowl slump

Good morning. Google unveiled its annual list of the year’s most-searched topics in Canada. Most aren’t too surprising. The Toronto Blue Jays took the crown as the most-searched news item, while “Why is Canada Post on strike” was the most-asked question. 

As for the most-searched person, Prime Minister Mark Carney was the figure Canadians were most curious about. In second place… infamous serial killer Ed Gein. How about that? 

Today’s reading time is 5 minutes.

Markets: Another day, another record high for the TSX. Better-than-expected bank earnings buoyed the index and sparked investor hopes that maybe this ol’ economy ain’t so bad after all.

Young people are starting to sour on the idea of a $17 lunch bowl that looks like a burrito was hit by a bus and thrown in a cardboard container.

Driving the news: Fast-casual restaurants like Chipotle that serve so-called “slop bowls” are seeing a huge pullback in spending, particularly among younger diners. The Mexican chain, along with its counterparts Cava and Sweetgreen, all cut their financial targets and have collectively shed ~50% of their stock value this year. 

Why it’s happening: It’s not all penny pinching; the cultural script could be flipping on the office lunch staple. As one recovering Chipotle bowl addict told Bloomberg, there’s now more resistance to the idea of “I go to the office, and I eat slop. Kind of like cattle.”

Why it matters: Fast-casual dining can be a bellwether for how people are faring financially, particularly Gen Z and Millennials. If people feel flush, they’re more likely to drop $15 on lunch rather than making one at home. Given that over half of Chipotle’s customers are young people, the chain’s struggles paint a pretty grim affordability picture for that age group. 

Bottom line: Bowls might be falling out of favour, but the value proposition of fast-casual chains — fresher, healthier food for a couple extra bucks than McDonald's — is still strong, especially with more health-conscious Gen Zers.—LA

Top Trump trade official says U.S. could withdraw from CUSMA next year. U.S. Trade Representative Jamieson Greer told Politico that the U.S. pulling out of CUSMA is “always a scenario” because “[Trump] only wants deals that are a good deal.” Greer also said he and Trump discussed this week the possibility of scrapping CUSMA and negotiating separate deals with Canada and Mexico. Prime Minister Carney will meet briefly with Trump and Mexican President Claudia Sheinbaum today in Washington at the FIFA World Cup draw.

RIP to the metaverse? Mark Zuckerberg is reportedly considering cutting as much as 30% from the budgets of his company’s metaverse group next year. Meta’s focus has shifted to AI, and Zuckerberg has mostly stopped talking about the metaverse lately.

B.C. Conservative leader quits after strange saga. John Rustad resigned yesterday as leader of B.C.’s Conservative Party, just a day after saying he would stay on despite his caucus’s efforts to oust him.

Sam Altman explored raising money to launch a competitor to SpaceX, per WSJ. We assume this has been back-burnered during the “code red” at OpenAI.

Sea-Doos and Ski-Doos are hot right now. BRP, the maker of the speedy rec craft, more than doubled its profit in Q3 compared to last year, and grew revenue by 14%.

European countries pulled out of the Eurovision contest in protest against Israel’s participation. Spain, the Netherlands, Ireland, and Slovenia all said they’ll boycott next year’s competition.

Prediction market Kalshi raised US$1 billion. The deal brings its valuation to US$11 billion, doubling in just two months. Investors are swooning over prediction markets (Kalshi’s main rival, Polymarket, is reportedly in talks to raise at a US$15-billion valuation), which allow people to make bets on almost anything. Kalshi’s current “trending” markets include: the Fed’s December rate cut decision, whether Donald Trump will release the Epstein files, the top artist on Spotify next year, whether it will rain in Los Angeles, and much, much more. 

Why it matters: Along with the raise, CNN announced this week that it would integrate Kalshi’s data into its broadcasts, another step towards the (somewhat unsettling) future imagined by Kalshi’s founder: “The long-term vision is to financialize everything and create a tradable asset out of any difference in opinion.”

There’s a new entrant in the race to offer Canadians generic Ozempic.

What happened: Hims & Hers, the U.S. telehealth provider known for lower-price (some might say knock-off) weight-loss drugs, entered the Canadian market through an acquisition of Livewell. The firm will also focus on obesity products in Canada, seizing a big opportunity. 

Why it’s happening: In January, Canada will become the first major market where Novo Nordisk’s patent expires for semaglutide, the compound that gives Ozempic and Wegovy their magic. That means a rush of generic semaglutide drugs is percolating as we speak.

Why it matters: With the potential to shrink prices from $218 per month to $76, semaglutide is about to become a whole lot more accessible to a nation with high obesity levels. Hims & Hers — alongside established firms like Felix and Maple — will be there to capitalize.

Also worth noting: Novo deliberately let its patent lapse after failing to pay a $250 fee. The theory is Novo didn’t bother because the patent was due to lapse in early 2026 anyway. However, IP lawyer Steven Shapes pointed out that if Novo did its due diligence and paid that relatively paltry sum, it could have extended protection until March 2028. Oops!—QH

🪖 €10 million. Fee the EU is charging Canada to be part of the Security Action for Europe (SAFE) arms procurement program — about $16 million. At first glance, it looks like a pretty sweet deal. However, one poli-sci prof pointed out on X that “entry costs are based on the expected benefits,” calling into question how much Canada stands to gain from the partnership.

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Take a look back at the week with The Peak’s Weekly News Quiz. 

Then, get cracking on today’s mini-crossword.