early studies suggest a better way. lexaria bioscience. with nurtec odt, i can treat a migraine when it strikes and prevent migraine attacks, all in one. don't take if allergic to nurtec. allergic reactions can occur, even days after using. most common side effects were nausea, indigestion, and stomach pain. ask about nurtec odt. welcome to "the exchange." i'm dominic chu. nvidia turned him into a growth investor for a little while. but now our market guest is back to his value roots and brings the names he likes coming up from here. plus, a challenging housing market has been a good thing for this company. we'll tell you why and talk to the ceo about where he sees demand going in housing from here. and we have the action, the story, and the trade on three more names getting ready to

report results. our trader likes into of them. that's ahead in the "earnings exchange." but we are decidedly red on the day so far, taking a breather. it's been a nice drun. the dow down. the s&p 500 down nearly one full percent. and the nasdaq composite, 15,959, really the laggard today, down about 1.5%. a bright spot in the markets so far has been a not so bright spot for the median term, talking regional lenders. but a bounceback for names like co-america. citizen's financial up 5%. two of the better performing regional banks. and nycb, you can see there, it's up as well on the day. now, there is one honorable and maybe even more so honorable mention is a mega cap bank, jpmorgan base, the biggest

lender in america, up about 1%. it hit a record intraday high in trading today, so if i was at a telestrator, i would draw a star next to that name. and speaking of record highs, bitcoin just did it. surging past the $69,000 mark and setting a new record intraday high earliertoday, but we touched it, and it pulled back significantly, now at $65,366 for the largest krcrypt currency in our marketplace. our next guest bought this stock back in2022 when it was under $200 a share, sold it at $705 after that. he's now returning to his value investor roots, betting on that trade from here. let's bring in the chief investment officer at greenwich

investment. i kind of know why you got into vi nvidia in the first place and why you got out of it and why you wouldn't get back into it right now. >> hi, dom. thanks for having me back. first of all, i look for stocks that i think are undervalued and sometimes growth stocks can be undervalued. in the summer of 2022, vnvidia was falling quite a bit, but i thought the stock was very undervalued, so i started buying it. i kept buying it all the way down to, you know, approximately $125 or so is where i got it at the lowest. but as you said, the stock has absolutely surged, and i started getting a little nervous, you know, for a couple of reasons. one, i think it's now overvalued, and i've heard the arguments that it's not overvalued, but i think it is. especially if you look at it on

a price-to-sales basis. but also i have fairly large positions in etfs such as qqq, spy and smh. nvidia is 26% of the smh. so i decided i didn't need to own the stock individually anymore. >> so it's a risk management decision. but you've got house money right now. where would we roll that into? cash is yielding 4% to 5% in savings accounts, even more so in certain parts of the treasury markets. money market funds. do you city there or deploy elsewhere, where there is value with the markets hovering near record highs? >> i'm doing a little bit of both. i have a large position in treasury bills and still rolling those over, primarily very short-term treasury bills that roll over 5%. and i'm happy to take that money with money that i'm not sure how to invest right now.

but i'm also, as you said, looking more in the value area, especially in dividend days stocks. and my latest big buy was pfizer. just a couple of days ago, i put some money into pfizer, because i think it's a very undervalued stock. i think the stock has sold off primarily because we have overcome our fears about covid. but this is a company that has, you know, 112 drugs currently in the pipeline, and i'm betting that at least a few of those are going to hit pretty big. and it's yielding well over 6%, and i'm happy to take that yield. >> does that mean that you're getting into it despite the fact that the momentum clearly is with some of these glp-1s within health care and pharma specifically? we're talking about names like ely legally, novo northis. is that the betters play right now versus an ely lily?

>> i'm a long-term hold and buy investor. when i buy, i buy for the long-term, looking for good dividends over time. i think because of those glp-1 drugs, many of these other pharmaceutical companies have run up a lot, and i would be hesitant to jump into them right now at their current prices. so i would rather go with something like a pfizer that's been so oversold that everybody hates that they're pretty much just giving the stock away, and i'm happy to take it at current prices. >> that's the case, we've got the stocks that you're putting money into. there's also a concern right now that markets could fall even further from here. nobody has a crystal ball, but it's not out of the realm of reason to have a bit of a pullback. if that were to hypothetically happen, how deep could it be, and what is the biggest concern you have for markets at these levels right now?

>> i would say the economy is doing quite well. i'm not too concerned about a recession any time this the immediate future. but the thing that worries me the most is the massive amount of government debt. we're at $34 trillion, and the interest on the debt, the interest cost is now up to 3% from 1.6% just two years ago. and it's going to go higher, because the fed keeps interest rates at very high levels. and i'm very concerned that this debt, which is already the interest on the debt is already 14% of the budget and as big as what we're spending on defense, is going to prevent us from doing a lot of other things. so i am afraid that congress, for example, may start talking about increasing taxes again. that would be a negative for the stock market. i've seen a big run primarily in the large-cap sectors, so i'm avoiding those right now. i am buying etfs, but the etfs

i'm buying are primarily in the mid-cap and small-cap areas. except for a few individual stocks like pfizer, which of course is a larger cap stock. but other than that, i'm focusing more on areas that have not participated in the rally in the last year or so. >> they would participate hypothetically, academically perhaps, if the fed were to cut interest rates. those small and mid-cap type names. do you feel as though that's something the fed needs to seriously consider? do we need to take rates multiple times throughout the next several months? >> absolutely. in my opinion, the fed should have started at the last meeting. they should have cut 25 basis points, perhaps every other meeting and get that fed funds rate down, because, you know, inflation is down. if you look at the last pce, it's 2.4% year over year. i don't think the fed needs to wait anymore, and i wonder why they're waiting. remember, monetary policy works

with a lag. so if they wait too long, they risk a recession. i would like to see the shorter end of that yield curve come down. i think long-tell interest rates may stay at current levels or go up a little. >> thank you very much, sir. we'll see you again soon. >> thanks, dom. tesla shares are under pressure again this afternoon after a suspected arson attack halts production at its giga factory facility in berlin. that stock is down 4% today, but the next guest has a hold on that stock and remains bearish on the auto sector overall. joining me now is colin langan. thank you very much for joining us this afternoon here. let's talk about tesla first, because it is a driver of the market, if you will. this is a stock that really does have a lot of influence on certain parts of the market dynamic right now. do you feel as though this

downward momentum is justified and how much further could it go? >> yeah. i think in the near term, we're talking about another year until at least the model two comes. so the stock really lacks a clear catalyst over that period. so there's still going to be some downward pressure the stock. but there's risk/rewards to the name. so we are still equal weight on it. >> if that's the case for tesla, is it still best in breed with regard to the ev makers out there? the entire industry, every single one of them, from china to the u.s., has seen some of those publicly traded stocks take a huge hit. is there a value proposition that comes to fruition because tesla is, in fact, the best that we have out here on the american side of things market cap wise, opposed to the ev names out this china these days? >> i mean, tesla does have a

current leadership position here. in the near term, we're talking about slowing deliveries. and, you know, i think from the broader industry, evs are a challenge, and that was the focus of our report this morning. particularly from a regulatory challenge. we'll see what happens with the white house proposed apparently changes coming to deregulations that areout there, which are quite aggressive and need more head winds for the traditional automakers. >> what is the trade right now within autos? is there a place that stands out in your mind across the sphere? >> we are bullish on a handful of suppliers. i think it's a company that's diversified on the combustion engine and e-power train. and theirle position how smooth that transition occurs. for traditional automakers,

there's challenges. you have the regulatory push toward evs, consumer demand is slowing, and they need to smell more of these. the epa rules sell around 9%, which are at 3% today. you have prizing pressure that's going to put pressure on those stocks. that's been a big driver of their profitability. all the indicators are that pricing is in decline. partly driven by the high amount of capacity in the industry, which i don't think people are focusing enough on. >> the capacity side of things could be an overhang. there's been this story that's developed about some of the automakers that are having a comparative advantage because of their tilt towards hybrid model vehicles, not straight-up electric vehicles and not total internal combustion engine. how important do you think that transition period will be for some of these manufacturers, given that hybrid dynamic that's developing and the demand

picture picking up for hybrid vehicles opposed to pure ev? >> well, i mean, having the capability of hybrid in your war chest is going to be payoff for companies. so i think ford, toyota, you know, stellantis, all have developed a hybrid option. but the reality is, if you look at the rules and probably even what's going to be the revised rules for 2032, you're still going to need a massive amount of evs regardless. so we'll see what happens. you know, particularly with the presidential election in november and how that changes, and maybe that will change the outlook for the needed evs. but it's nice to have that hybrid. and ultimately, the rules are going to come down, because the targets for ev is so aggressive. so companies that have that hybrid option is probably going to be worth having. >> colin, before we let you go, you brought up the election and

possible rules ahead. how much do you look at or how do you try to forecast what future regulations look like, and how much does that play into yourmodels and valuation? >> well, the headwinds around electric vehicles is one of the key drivers of our thegtive thesis. we've seen this, if you go back years there were points where automakers were forced to sell small cars to hit fuel economy standards. so i think if you look at the media reports from people we talk to in d.c., it sounds like the proposed biden changes seem for fairly benine, that you're going to keep that 67%, maybe allow some ev in that mix to get to targets. but we're talking about targets that are quote aggressive and challenging to hit. >> colin, thank you very much for the conversation. >> thank you. coming up on the show,

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welcome back to "the exchange." shares of deck manufacturer, trex, is up 15% this year, despite concerns about an economic slowdown. higher mortgage rates, one of the reasons why, as it's led more people, not shockingly, to stay in their homes and maybe renovate them. renovations make up more than 90% of trex's business, only 5% is actually from new home construction. for more now, i'm joined by trex ceo brian fairbanks. you may recall that we spoke, audience, to brian right after the quarterly earnings report. so thank you very much for being in person with us. >> thank you. >> so let's talk about the state of the housing market. everybody who watches cnbc knows what the current state of play is. but from somebody who has a big hand in how all of this is playing out, do you feel as though the housing market is in a place where interest rates are still a huge headwind for the

market overall? >> what we talk less about in the housing market is what are those people doing that already have the lower mortgages, already in their home, and it is difficult to make that next move up to the extra 500, 1,000 square feet because of the cost of the home, as well as the mortgage rate. so a low-cost way to add space to your home is by putting a deck on. it might be replacing an old wood deck that's falling apart. generally get 10 to 12 years out of a wood deck or an all-new deck. this is a trend towards bringing that indoors out. couches, ookware, tvs. so you're bringing that feeling oh of your living room to your deck. >> have you felt as though -- it's tough to comp against many parts of the pandemic lifestyle that have happened. people spent a lot of people on patio furniture, decking projects. if you could put for us in your expert vision the demand picture

now versus what it was like in say 2021-'22, what do you feel as though the trajectory still is? is there still real momentum or is it starting to normalize? >> we saw explosive growth during the pandemic. we saw the growth and have held onto the growth. in 2023 we saw mid single digit increase. for 2024, we've gooded to 11% to 13% growth. so the industry, the higher interest and outdoor living is normalized back to the areas where we expected it to be. long-term, we expect to deliver on average 12% growth. that's conversion of wood, converting them to composite. more railing on the decks and somed a ed adjacent products to it easier for the consumer. >> part of the education process for me, because i told you the

last time i did a decking project, was going through all the options and the cost benefit. the price points can vary from lumber through pvc and everything else. what is the education process like on your end? because you're not necessarily selling to theend customer, but you have distribution out there. what do you tell customers about why the product you have out there compares better than the wood side of things and the pvc side and everything in between? >> the most important thing to do is make it easy for the consumer. we have product lines from 2 x the price of wood, all the way up to our signature decking line. so $2 a foot to $10 a linear foot. we want to make it easy so our consumer can find a contractor, see the products, or where can they get that material? we use our website for a lot of that education. people will start with that.

searching on composite decking or just decking, find the website, and we'll help walk them through that process. even to the extent we have our own inside sales department. when we sew this information coming in, we can say is there something we can do to help you through this process? >> based upon that phone and web traffic and how you see customer demand pick up or wherever it is, where do you think in america are you seeing the most activity and interest in your products, and where are things maybe not quite as robust and other parts of the u.s.? >> it's really balanced across north america where the population centers are, or in the winter. so we're going to get more snow in the northeast and midwest. so you don't build as many decks in those areas. so more of that business moves into the south and out west. but the season kicks off in april and runs through the end of october. and all of the indicators that we are seeing thus far, contractors have good backlogs, they're ready, back to where

they were prepandemic. so generally speak, about five to seven weeks. and we're hearing strong indicators from those in our channel, on the pro channel, home centers, as well as the contractors. now, before we let you go, from either your business perspective and/or the macro market overall, where do you think interest rates could be, should be to really kick things off for your business in the housing market in general? >> i think we'll continue to perform well, even if rates stay where they are. i would expect over the next year or so, we'll see some easing within those rates. that will open up the affordability. and the nice part of that, as you have people moving up from the first home to the second home to the third home, that does drive repair and remodeling. today, we're seeing our tail wind coming from people staying in their home. but once they start moving, we go back to the old model where they look to repair the deck already on the house or add

additional space. >> all right. brian fair banks with trex, thank you very much, sir. >> thanks. >> see you soon. still ahead on the show, it's been a rough year for tesla shareholders like elon musk. up next, we'll explain why musk's pain jf isefbezos' gain. "the exchange" is back after this. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. to build the electric vehicle of the future, you need partners. mining partners. technology partners. education. supply chain. energy. what if one partner could do it all? that partner is ontario, canada.

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welcome back to "the exchange." let's get another check on t tesla, with shares down 11%. the stock is on pace for its worst week in a month. those losses are having a big impact on elon musk's net worth. robert frank has more. robert? >> reporter: dom, good to see you. for the first time in three years, jeff bezos is once again the world's richest person. bezos now has a net worth of $200 billion, just past the elon musk fortune of $198 billion. musk lost $18 billion yesterday. that's just one of the largest wealth losses ever in one day in dollar terms. he's down $31 billion for the year. meanwhile, jeff bezos, well, he's living his best life,

moving to miami, spending time in his 400 foot yacht with his partner, laura sanchez, and saving taxes. he sold $8.5 billion of amazon stock just in february. by moving to miami, he saved up to $600 million in taxes that he would have paid if he still lived in seattle. the big question is, what bezos plans to buy with all that cash. he had a year to sell that stock under that sale plan, and he told it just in a few weeks. so he's in a hurry to do something big. speculation right now is around his possible interest in united launch alliance, that's the rocket launch company that could add to blue origin. despite that massive share sale, amazon shares up over 18% this year. and dom, until we know what he's going to buy, he could park that money in a money market and earn more than a million dollars a day just in interest. >> that's how the rich get richer in this case here.

robert, let's take us through the dynamic. we understand what's happening with tesla and how it affects elon musk and amazon stock, how it affects jeff bezos. can you take us through some of the movement that we are seeing in the world's richest ranks? at one point, you know, the arnos were doing well for themselves, warren buffett, bill gates in that mix, as well. how has the market developed and how does it change the die nam nick the top ranks of the world's billionaires? >> om, it's really an exciting time, because it's a three-way race. they're all tied for first place right around $200 billion. so, you know, jeff bezos is at $200 billion, elon musk at 198. so with all of these stocks sort of playing a day-by-day narrative, we could see them change a couple times of week. we haven't seen that for quite a

while. when musk took over for bezos, we had a brief period where bernard arknow was number one. but you have luxury, evs and online retail, as well as amazon, all vying to be the dominant force in drive thing wealth. so as much as we hear about ai, it's really exciting to see these top three and where it's going to shake out. >> we can't forget about space exploration. robert frank, thank you very much. now let's send it over to leslie for a cnbc news update. the creator of a software that can hack smartphones and turn them into surveillance devices can no longer do business in the united states. the treasury department made the announcement today, banning the company which makes predator spy ware. amnesty international investigation found predator was used to hack into the phones of journalists, human rights workers and politicians, including two members of song.

and speaking of congress, senator john verasso won't be running for senate gop leader but will throw his hat in the ring for the number two position. senators john thune and john cornyn will run to replace mitch mcconnell. the vote will happen at the end of the year. >> >> iconic booth, there it is, featured in the final scene of "the opranos" sold at auction for a hefty $82,000. the own er put the booth up on ebay thursday to help pay for renovations. the winner will take home the seats, table, and the divider wall, reserved for the soprano family. dom, back to you. >> i think tyler they have good ice cream there, too. thank you very much for that. disney is turning positive as ceo bob iger is confident the company's streaming offerings will be profitable by the fourth quarter of this fiscal year.

he made those comments at the morgan stanley tmt conference. those shares up about three quarters of 1%, spiking in the last few moments on that bit of news coming out of the tech media and telecom conference. coming up, this one-year chart looks a little like the good, the bad, and the ugly, with crowdstrike more than doubling, nordstrom basically flat. and jd.com losing more than half its value the last year. that's coming up next. let's do some show and tell where we show you a chart and tell you the story. target is moving higher on a big earnings beat with shares having their best day since spiking 17% in november in response to the last time the retailer reported results. in fact, the stock's up 50% sense then and only posted two weekly declines in the fast four months. here's what the ceo told "squawkbox" earlier this morning about the road ahead for that retailer.

>> we're not satisfied with where we are, and our theme today is all about a road map for growth, getting back to growing the top line, growing traffic, and making sure that we make target a growth company again. we have seen a very resilient u.s. customer. despite inflationary headwinds, the uncertainty of the market overall, the consumer continues to shop. my name's cody archie. and i'm erica.

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welcome back. we're trading shopping, cybersecurity, and the supply chain in today's earnings exchange with shares of nordstrom, crowdstrike, and jd.com results on deck. kkm financials jeff killberg is here with the trades. first up, let's talk nordstrom's, shares up 30% in the past six years. but ubs seeing potential challenges ahead as consumers flock to discount retailers. but you believe nordstrom is a buy. why? >> i do want to push back on that note, dom. it does make sense to be a buyer here. let's look back at a five-year

persp perspective. the consumer, still recovering, but down about 55%. so as i continue to see strength in the summer, this is a name we want to own. if you look at a forward pe ratio, it's relatively inexpensive. so i think you want to own nordstrom. >> also a featured stock yesterday. i think gina sanchez was talking about the bear case over there. so we have the bull and bear. crowdstrike, shares down 7% today, but doubling over the past year as demand for cybersecurity continues to grow, the price target is $350 a share, reiterating the buy rating. what is your take for crowdstrike? >> you can be a buyer, but you have to be careful. we have testing that 50-day

moving average. down about $21 today. but you're seeing a partnership roll out today. we've been talking about dell and crowdstrike talking about how they can be implemented, their platform to help dell computers and software out there. it's interesting, all these cybersecurity threats we are seeing become more sophisticated and more stealth. so i think when you talk about cybersecurity, we own palo alto, our preferred way to own this. palo alto networks has been outperforming crowdstrike. but there's a ton of momentum, but lock at this 50-day moving average at $293, so be a buyer against it. >> finally, jd.com. lots of head winds for the chinese economy, and morgan stanley warns that increasing competition and discount sectors will keep pressure on jd. it's the microwith the competition. what's the call on jd? >> i think you could be a buyer.

this is a falling night. when you look at jd.com compared to ali baba, which is about five times bigger than jd.com. i have exposure to jd, but i get very careful, to your point. what's the catalyst to own china? we have seen the continuing struggling economy over there. when you talk about being more than 50% off its 52-week high, i know you had that chart earlier. this is the ugly. but i like ugly charts. i think there's opportunities in ugly charts, but you have to have your trading hat on. >> that's the call on all three of those names. jeff, while we have just a few moments left here, let's talk about the pullback we're seeing in markets right now. the big take from you on whether or not there's still more downside ahead. >> you rolled me out on the one day where we have red on the screen. i think we have been overextended.

we talk about relative strength indecision. so yes, you could argue that rsi levels, not just nvidia, but the overall s&p 500 is overbought. but we're seeing these conditions persist and we'll hear from powell says. but you know how i feel about markets, they're not linear, they can't go straight up. so i think it is positive, i think the market would welcome us to see us test that 49, 50 level in the s&p 500. it's just a back and fill concept we've seen, and it may be coming. it's something to lean into and buy and not run from. >> 4950 the level to watch. jeff, thank you very much. see you soon. still ahead on "the exchange," daytime dining and battery bears. we'll dig into two of today's big movers. big movers. and

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welcome back. we have a market flash on albermarle shares, falling 12%. pippa joins us with what's weighing on the shares of that big lithium company. >> it is the worth performer today on the s&p, after albermarle announced up to a $2 billion capital raise via convert able preferred notes, the market signalling that the company needs cash and now to fund its operations. telling me albermarle is aggressively outspending cash flow, and they're raising capital to continue ex-pending through what they perceive to be a temporarily weak period. this, of course, comes as lithium prices have all but collapsed, down 80% from 2022's

high. the downturn is thanks to three key reasons. battery producers are working through inventory, demand for electric vehicles has slowed, and new supply came on line faster than expected. shares are now 65% below 2022's record high, with other producers, including arcadium lithium and sqm seeing heavy losses. this trade was all the trend for a couple of years. >> consensus, because of evs. so evs, taketh, giveth, taketh away. >> etch would say when prices shot up more than 300%, they got too high. so that wasn't good for anyone. but the correction we have seen has taken the market by surprise. and of course, efv demand has slowed but not stopped. so the danger we see here is that when we see these massive

swings, it changes the capital funding requirements for these companies, and then now if prices drop to below what's sustainable for the miners, then they'll stop spending and we'll have a supply drop. so that's the problem. so i think somewhere in maybe the $35,000 per metric ton range is what experts say is the middle ground. so right now we're below $15,000. for a time we were at $80,000. so this has been on a wild ride. >> pippa, thank you very much. coming up, can million dollar bacon take the place of silver dollar pancakes? breakfast, brunch, lunch, chain, first watch is banking on it. we'll talk to the ceo about their experience. that's coming up next. as we head to break, the dow falling to session lows, down about 345 points, the worst levels of the day, down nearly 1%. we'll keep an e eyon that and be

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proxly battle at the coffee giant. kate rogers has more on that story. good afternoon. >> hey there, dom. good to see you. the strategic organizing center confirming this morning it is withdrawing its three director nominees ahead of starbucks' an you will announced last week that the two had agreed to work on a framework for collective bargaining. starbucks put good faith effort nonunionized stores did have access to, including credit card tipping and tenured raises for some worker. in a statement the s.o.c. said, this agreement represents a potentially huge shift in starbucks labor relations strategy. since the announcements we had meaningful dialogues based on these discussions we believed that buy and large shareholders are optimistic the company is committed to these changes in

good faith and intends to repair its relationship with its workers which will enhance performance and shareholder value. starbucks said in part, starbucks has always been committed to doing the right thing importantly for our partners who are the heart of our business. this was closely watched as it was one of the biggest fights of the season and s.o.c. enlisted advisers reserved for activist. fascinating back and forth there, dom. seems this fight is dropped for now. >> kate, i want to call your attention now and pift a little bit to a union labor story. you've been following this one. this is the dartmouth men's basketball team. actually voting to unionize earlier this hour. what can you tell us about the latest there on college athletics and unionization? >> this is a big one, dom. as you said, dartmouth men's basketball team voting 13-2 in favor of unionizing. so this is the first time in ncaa division i history that a vote like this has been passed. a big step in a case that could wind up killing the ncaa's

amateurism model and it's likely, of course, other schools are watching and will follow suit as players are looking to get a piece of the ncaa's billion dollar pie. in a statement, dartmouth maintained that classifying these students as employees is unprecedented and inaccurate. this will have big implications going forward for college athletes and will be very closely watched. >> kate rogers, thank you for both of those stories. we appreciate it. we'll go back to the restaurant side of things. shares of breakfast lunch first watch are down. a revenue beat companying projecting flat to negative traffic growth but also planning to open more than 50 new locations later on throughout the year. joining me now is first watch president and ceo chris for more on that story. chris, thank you very much for being here on "the exchange." i wonder if you might be able to tell us a little more about the

concept of the restaurant for those who don't know it very well. even in new jersey, there's only one that's kind of close by to where we are here at cnbc. >> yeah. so, we're a breakfast, brunch and lunch only concept. we have been around for 40 years. but we know we have pretty low awareness. we're not really known as a chain. people think we're a local restaurant and we love that. only open from 7:00 a.m. to 2:30 p.m. we have been at this for a long time. high growth concept. we went public in 2021. so, we have been here for a while. we're the leader in the space. we were an early mover in this daytime dining category that's really been the only growth segment in the restaurant industry. >> there haven't been, in my mind, many of these kind of daytime only restaurants that are pure play publicly traded. you're one of the handful out there right now. what exactly is the growth strategy? what exactly are you targeting,

geography, demographic wise? about what type of customer you're trying to cater to to power that growth level that you're trying to achieve. >> yeah. i mean, i think it's taking advantage of a number of long-term consumer trends that we've been in advance of and now right the middle of. and so one is certainly the growth in the brunch and breakfast segment. you know a lot of people talk about us being open only 7:00 a.m. to 2:30 and two day parks. most restaurants are open two day parts lunch and dinner. we happen to take on two different ones. there's less competition in that space. it's much more fragmented segment. there's also a brunch revolution happening in the u.s. and we're taking advantage of that as well. that's been going on for a while. with breakfast being the only growth segment in the restaurant industry, yet still 70% of breakfast occasions being eaten at home, we just see a tremendous amount of white space for us. and we, you know, have again more than 500 restaurants in 29

states. and the interesting thing is that we perform well in a number of different markets. our top restaurants span 20 states and 10 dmas. we have proven our portability and proven the consumer is interested in an offering like ours, as unique as it is. as far as who we go after, we have a very, very broad demographic profile of our customer, multigenerational, higher household income, higher educated, but it's a consumer who appreciates quality ingredients, prepared well, at a value. and so, we don't have heat lamps, deep fryers or microwaves. we use cage free eggs. that's another consumer trend we feel like we're aligned with perfectly. w. profit margin wise, where is the more attractive part of the day? is it tilting more towards the breakfast side or more towards the lunch side? >> yeah. i mean, not just for us but

breakfast has been known as the most profitable segment in the restaurant industry and certainly if you think about it, eggs and toast and potatoes and things like that have great margins. and so -- but it's also a lot of breakfast items that you can't really make at home like you can with dinner. so going out for breakfast and the social occasion around brunch is something that the consumer has been leaning into for years and has been growing. and we do it at a 16.50 check average. so it's a very approachable occasion. >> 16.50 for the average check is pretty big. also, you're a private equity backed company. advent invitational, still a major shareholder for your company. what's the conversation like between you and your private equity owners about just what you think the plan is going forward about achieving those growth plans? >> you know what, advent has been a great partner of ours. they invested in 2017. they're a great strategic partner. they helped us tremendously

along the way, certainly with our ipo journey. and that partnership is such that we're fully aligned on our growth and where we can see this company going. so, we have a path towards 2,200 restaurants. they're aligned with us on it. and we have the resources necessary to get there. >> all right. and before we let you go, chris, really quickly, your favorite menu item? >> oh, man, i'm a traditionalist. i love the traditional breakfast with eggs and bacon and potatoes. but i'll splurge on one of our decadent items like a stuffed french toast. but you can find me having the traditional breakfast. >> thank you very much. please update us soon. >> all right. will do. thank you. well, that does it for "the exchange." "power lunch" is coming up next. courtney reagan is just over there getting ready. i'll join her on the other side of this commercial break. ontario has all the partners you need to make the electric vehicle of the future. with one of north america's largest i.t. clusters. 65,000 stem graduates per year.

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♪ welcome to "power lunch." alongside courtney reagan, i'm dominic chu. we are watching the markets right now at session lows. we're getting back some of that record rally this time around. shares of apple, by the way, falling once against this time on concerns of its sales of iphones in china. check out these numbers, apple down roughly 11% this year compared to a 6% gain, courtney, for the nasdaq 100 large gap overall. disney share