What to expect from Weber's IPO

Brian Sozzi gives us his take on Weber Grills ahead of the company’s IPO debut in the NYSE and also breaks down the features that differentiate Weber from other grill companies.

Video Transcript

MYLES UDLAND: Oh, welcome back to Yahoo Finance Live. Today's top story is Robinhood doing whatever it's doing after its recent IPO. But coming up in the coming days, Brian Sozzi in the market. We are expecting Weber to hit the public markets. You've been all over the grueling trade this year. You talked to the executives over at Traeger. We spoke to the My Barbecue guys CEO earlier this, I guess it was last month, because it's August 3rd now. Only a couple of weeks ago, Weber, what do you got?

BRIAN SOZZI: Yeah, I'm looking forward to grilling up some analysis here on Weber when they eventually go public in the coming days. Oh, you had to say it, because you just have to do it. I really enjoyed reading their S1. So this is going to be a normal IPO. They file an S1, they come to market, their stock gets bought or gets sold. A couple of things I didn't realize, one, they have the Weber Grill Academy, Myles, where you, overseas. You can go there, work closely with grill masters, and learn how to grill up a absolutely perfect steak. That is pretty cool.

Also, they're the number one outdoor cooking brand on Amazon. I definitely did not know that. And they also have a 50 million installed base in terms of grills globally. That is a pretty big number of, I would imagine, of loyal customers that have used Weber Grills for many, many years. But just like Traeger, Myles, and this might get a giggle out of you, they're pitching the them as being a connected cooking platform. They have their own software, you can cook, you download the app, you can use the app to grill up your absolutely perfect steak here, and that looks to be the next area of growth for them.

Are they the Netflix of grills? Traeger promoted there being the Netflix of grills and maybe they are. In that chart right there is just how fast this brand is grown, really since it was founded. It's just been up, up, and up.

MYLES UDLAND: Nothing makes me happier. I saw this yesterday. I never had a chance to comment on it. Nothing makes me happier than the graphics that we do for this segment, including your face on it, just for reasons unknown.

BRIAN SOZZI: That is me.

MYLES UDLAND: But I think it's great. So I got a-- look, everyone is probably like, guy, can you just shut up about your grill? I got a Genesis too folks. It's great. It comes with a little logo, a decal on it. It's like, download the app. I didn't download the app.

BRIAN SOZZI: (laughs) Got it down. You have to download the app.

MYLES UDLAND: OK, but it's not like-- but like, the fun with the Weber-- and look, granted I'm just doing what a lot of people do, which is-- this is what my dad did when I was growing up. Here's how he grilled. He stood there, looked at it, and then he was done. So I'm like, oh, that's how you're supposed to grill. A Traeger has all kinds of other stuff where it's giving you the temperature on your phone or whatever. I went, I bought a meat thermometer and I stand there and I look at it, and then I close the lid and then I stare at the trees.

BRIAN SOZZI: You've got an instastory with that.

MYLES UDLAND: I think the beer and then I stick that meat thing in and it's, oh, 165 for chicken thighs. I guess we're done. Then I take the meat off the grill. I don't download the Genesis app, but it's so great. I love my Weber.

BRIAN SOZZI: Fair enough, and to that, you know, just-- this is actually a company that has real numbers here. They're actually making money. You know, for the six month and--

MYLES UDLAND: A billion and a half of revenue.

BRIAN SOZZI: , Yeah for the six months ended March 30th, sales up 62%, almost a billion dollars true point, operating profits up 114%. They're making real money, but really, I can't help but to go-- look at that photo. (laughs) [INAUDIBLE] It's like elf on the shelf. But, you know, worth noting though, I had, reflecting on my life a bit going through this S1, and I remember the 1985 Weber Genesis. They have a picture of it on there inside of the S1, I'm grilling up some really bad London broil as a kid. I mean, I was using the grill when I was five or six years old. And if I didn't cook a good thing of meat, it was not a bad-- it was not a good day for me. That, really, he put me to the pavement.

MYLES UDLAND: So, one also subjected to way too much $1.99 London broil when I was a kid.

BRIAN SOZZI: That was brutal.

MYLES UDLAND: I mean, it's terrible.

BRIAN SOZZI: Does anybody eat that anymore?

MYLES UDLAND: I don't know.

BRIAN SOZZI: You see it in the store, it's like 5 inches thick. It's really bad.

MYLES UDLAND: There's like a nice meat place kind of like 15 minutes to my house. Their London broils, which I had them once, that's actually good, but it's like the fillet. It's like a ShopRite equivalent of a filet mignon, if you get a London broil at this place. Anyway, that Weber 85, the Genesis my parents got one. I think they got it as a wedding present in '88 and that thing was in the backyard for years, like 15 years.

BRIAN SOZZI: Rustic propane tank, rusted out, grease drippings on the floor, didn't matter.

MYLES UDLAND: You put the little coverall on it. I keep mine in the garage, but, you know, you got to put the thing on it so it doesn't get rained on.

BRIAN SOZZI: True story. Before I let you go, I remember vividly.

MYLES UDLAND: Oh, you're letting me go?

BRIAN SOZZI: Maybe when I was seven or eight years old--

MYLES UDLAND: Bad news, we're both here for the next hour.

BRIAN SOZZI: Yeah, dropping a London broil on the ground, I was grounded for a week. It was a really bad day for me and I will never forget that.

MYLES UDLAND: Like, did you drop it unintentionally?

BRIAN SOZZI: I don't want to start crying right now.

MYLES UDLAND: I know, but why would you get grounded for a week if you accidentally dropped a London broil?

BRIAN SOZZI: That's how things went at the Sozzi household. It was a different time. Those were the 80s, man.

MYLES UDLAND: You made it.

BRIAN SOZZI: Yeah, I guess.

MYLES UDLAND: You made it.

BRIAN SOZZI: Sure.

MYLES UDLAND: That was before my time. I like being involved in the grill in the 80's.

BRIAN SOZZI: I'm emotionally sharing with our audience now. I hope you're connecting with me. If you have similar stories, tweet them at me. I'm very curious.

MYLES UDLAND: Sozzi, you told us you were reflecting on your life reading the Weber S1.

BRIAN SOZZI: That's what's-- yeah.

MYLES UDLAND: That's like what novels are for. For you, it's a securities filing--

BRIAN SOZZI: It's a very sad life, Myles.

MYLES UDLAND: --with the grills.