Forbes Daily: The Snack Wrap Is Back, And Wall Street Is Lovin’ It

Wall Street is hungry for the Snack Wrap: The return of the popular McDonald’s menu item has fueled a stock market surge for the fast food chain.

The Snack Wrap made a comeback at franchises nationwide Thursday after nearly a decade, and Goldman Sachs upgraded its rating for the company’s stock to “buy” in response. McDonald’s shares surged 2%, outpacing the S&P 500 and adding $5 billion in market value. That’s equivalent to 1.7 billion Snack Wraps at their cost of $2.99.

Previously, investors hadn’t exactly been Lovin’ It, as McDonald’s has reported negative same-store sales growth in three of the last four quarters. Now, the Snack Wrap is expected to boost its sales for the second half of the year.

FIRST UP

President Donald Trump announced he will impose a 35% tariff on goods imported from Canada, and said he will raise the baseline tariffs on all trading partners from his previously announced 10% to 15% to 20%. Trump appeared to downplay the impact of the tariffs on the economy, pointing to the stock market hitting new record highs on Thursday—although futures indexes slipped after the tariff comments.

MORE: U.S. households could shell out an extra $2,400 this year as a result of President Donald Trump’s tariff policies, according to a new analysis from Yale University. If they take effect as planned, the combination of various tariffs on countries, such as Brazil and Japan, along with 50% on copper, would equate to an 18% effective tariff rate on U.S. consumers—the highest effective tariff rate since 1934.

The U.S. will become the largest shareholder in MP Materials, which owns the only rare earth mine in the country, as the trade war with the U.S. has led China to cut back on exports of rare earth minerals, crucial to the auto and defense industries. The Department of Defense will buy $400 million in MP Materials’ preferred stock, along with a warrant to purchase common stock, investments the company says it will use to construct a new rare earth magnet plant.

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BUSINESS + FINANCE

A number of Iconic American cereals, including Froot Loops and Corn Flakes, will have a new corporate owner, as Italian food giant Ferrero is set to acquire WK Kellogg for $3.1 billion. Ferrero, whose executive chairman Giovanni Ferrero is the world’s 36th-richest person with a net worth of $41.2 billion, will add to its growing North American portfolio that also includes Butterfinger, Keebler, Famous Amos and Jelly Belly.

Bitcoin rallied Thursday to a new all-time high above $116,000, the latest milestone for the cryptocurrency in recent months as House Republicans appeared to stoke regulatory optimism among crypto investors. The GOP-led House Committee on Financial Services has declared the week beginning July 14 to be “Crypto Week,” during which the House would consider crypto-friendly legislation in order to help make the U.S. the “crypto capital of the world.”

TECH + INNOVATION

AI startup LangChain has raised $100 million at a $1.1 billion valuation, as the company—featured on the 2025 Forbes AI 50 list and on the 2024 Forbes Next Billion Dollar Startups list—aims to help developers build applications using models like OpenAI’s GPT-4. Its first product, which assists developers with evaluating, monitoring and debugging code, is used at tech giants like Uber and LinkedIn.

Just hours after launching the most recent version of his controversial chatbot, Tesla CEO Elon Musk announced that Grok will be available in all of the automaker’s vehicles. The news comes the same week Grok made posts praising Hitler on X, and on the heels of the resignation of the social media platform’s CEO Linda Yaccarino.

MONEY + POLITICS

A federal judge again blocked President Donald Trump’s executive order restricting birthright citizenship, preventing the policy from taking effect later this month. While the Supreme Court recently ruled that lower federal judges cannot issue sweeping orders to halt policies nationwide, it specified several carveouts, including class-action lawsuits which prohibit the Trump Administration from enforcing a policy against a specific group—which is what the plaintiffs in the latest case did.

TRENDS + EXPLAINERS

Compared to the U.S., the market for cannabis in the European Union is relatively small—about the size of New Jersey’s marijuana economy. But thanks to sensible regulations and a strong potential upside, its industry is starting to light up, and Forbes has created a guide to navigating the cannabis laws across the EU and the United Kingdom.

Washington University in St. Louis is among a number of colleges that are likely to see higher tax rates on their endowments. In a recent email to students, faculty and staff, the university’s chancellor Andrew Martin said the school will face an estimated $57 million annual tax—a $37 million increase from its previous liability. But according to Martin, it’s just one of the “many existential threats we face in the current environment.”

DAILY COVER STORY

Meet The Italian Billionaire Behind Ferrero’s $3.1 Billion Deal For Kellogg

When Ferrero announced it would acquire WK Kellogg on Thursday, it wasn’t just one of the largest deals in the food industry over the past year. It also marked the crowning achievement in a decade-long campaign by Giovanni Ferrero, the billionaire executive chairman and majority owner of the family-owned company, to turn the Italian brand into a major player in the United States.

Giovanni took over sole leadership of the company—best known for its chocolate hazelnut Nutella spread and Ferrero Rocher gold-wrapped chocolates—after the death of his father, Michele Ferrero, in 2015. Since then, Forbes estimates the firm has spent more than $13 billion (including the deal announced Thursday) buying up at least 19 companies in 8 countries, ranging from a snack producer in Brazil to a butter cookie maker in Denmark.

It’s been a winning strategy: the firm recorded $3 billion in EBITDA (earnings before interest, tax, depreciation and amortization) on $20.4 billion in sales in its latest financial year ending in August 2024. That’s nearly double the $1.6 billion in EBITDA on $10.6 billion it generated in 2015, before it began its purchasing spree.

The mammoth deal for WK Kellogg is set to turbocharge the firm’s growth in the U.S., where it has already made at least five acquisitions since 2017.

WHY IT MATTERS “With the WK Kellogg acquisition, Ferrero’s revenue could now surpass that of candy and pet food giant Mars’ snacking business, making it an even larger player in the $620 billion global confectionery industry,” says Forbes staff writer Giacomo Tognini. “As the head of the third generation running the company, Giovanni Ferrero has made it his mission to expand Ferrero into one of the key global players in the industry—and this deal is another step forward in that direction, even as President Donald Trump’s tariffs and RFK Jr.’s crusade against artificial food dyes could spell trouble for the company.”

MORE Exclusive: Mars Unveils Strategy To Double Snacking Revenue To $36 Billion

FACTS + COMMENTS

Delta Air Lines reinstated a profitable expectation for this year, although it was a notably lower prediction than it set six months ago. The carrier’s shares saw a boost after the airline updated its profit outlook:

$5.25 to $6.25: Delta’s projections for full-year earnings per share, down 15% to 29% from its January projection

‘Slowly starting to climb back,’ Delta CEO Ed Bastian said of consumer confidence

11%: The boost to the Dow Jones U.S. Airlines Index following Delta’s report

STRATEGY + SUCCESS

If you’re worried about artificial intelligence taking over your job, you’re not alone. But instead of fearing change, embrace it: Figure out a handful of recurring tasks that you can automate with AI, and be strategic with your upskilling by focusing on outcomes. Then document and communicate those wins with managers to help negotiate your next raise.

VIDEO

QUIZ

A crowd gathered at a zoo in Thailand on Thursday to celebrate the first birthday of an animal that has become a social media sensation over the past year. What type of animal is it?

A. Hippo

B. Capybara

C. Panda

D. Penguin

Check your answer.

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Thanks for reading! This edition of Forbes Daily was edited by Chris Dobstaff and Caroline Howard.