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Anyone who follows the world of competitive eating or has watched a July 4 hot dog eating competition in the last decade knows the name Joey Chestnut, which has become synonymous with the sport.
Known as one of the greatest competitive eaters of all time, Chestnut will not compete in this year's July 4 Nathan's Famous International Hot Dog Eating Contest.
What Happened: Many in the sports world were shocked to hear that Chestnut will not be competing in this year's event, which is hosted by sponsor Nathan's Famous (NASDAQ:NATH).
The competitive eater was told he couldn't compete due to his sponsorship with plant-based food company Impossible Foods, which has launched its own hot dog brand. Chestnut, who has won the event 16 times, will take part in another competition.
Streaming giant Netflix Inc (NASDAQ:NFLX) announced it will host "Chestnut vs. Kobayashi: Unfinished Beef" on Sept. 2 at a to be named location
The new live head-to-head all-beef hot dog eating competition will pit Chestnut against Takeru Kobayashi, a rival who won the Nathan's July 4 contest six times. The two have not faced off against each other since 2009. Kobayashi announced his retirement from competitive eating last month citing health concerns, but wants one last shot at Chestnut.
"Retiring for me will only happen after I take him down one last time," Kobayashi said in a statement shared by ESPN. "This rivalry has been brewing for a long time. Competing against Joey live on Netflix means fans all over the world can watch me knock him out."
Chestnut holds the world record at 76 hot dogs and buns consumed in 10 minutes at the July 4 event in 2021. A 16th title was won last year by Chestnut with 62 hots dogs and buns consumed.
Chestnut and Kobayashi tied in 2008 before Chestnut won in a controversial tie breaker.
ESPN, a unit of The Walt Disney Company (NYSE:DIS), may be the unfortunate casualty in the controversy. The media company airs the annual July 4 eating competition with millions often tuning in in recent years. ESPN recently renewed its rights to the competition through 2029. Without Chestnut, this year’s event could see significantly lower viewership.
Related Link: Bill Gates Is Not Expecting You To Give Up Meat, Even Though The Planet Could Benefit From It — Here’s Why
Possible Winner: As much as Netflix could be a winner in the controversy, Impossible Foods has gained extra attention for free. If the saying of there's no such thing as bad publicity is true, Impossible Foods could be swimming in free PR and media coverage (including this article).
While many know of the plant-based food company, Chestnut's sponsorship and the added attention could create even more brand awareness for the company that is growing its product lineup and retail presence.
In a statement to ESPN, Impossible Foods said they support Chestnut "in any contest he chooses" and perhaps cleverly added "meat eaters shouldn't have to be exclusive to just one wiener."
Impossible was founded in 2011 and has been a rumored IPO over the years with multi-billion dollar valuations. The company raised $500 million in 2021 and has a roster of investors that includes Khosla Ventures, Bill Gates, UBS, Temasek, Coatue and Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) venture capital arm Google Ventures.
Impossible has also added a lit of celebrities and athletes among its investors over the years. A 2020 funding round listed Kirk Cousins, Common, Paul George, Peter Jackson, Jay-Z, Mindy Kaling, Trevor Noah, Alexis Ohanian, Kal Penn, Katy Perry, Questlove, Serena Williams and more as Impossible investors.
Impossible could look to launch a new advertising campaign with Chestnut centered on the controversy to capitalize even more attention.
Why It's Important: Nathan's is well-known as a top hot dog company and its name has become synonymous with the annual July 4 hot dog eating competition.
The decision to keep Chestnut out of the competition could have a lasting negative impact. Major League Eating and Nathan's have not banned Chestnut from the competition, but given the ultimatum that he end his sponsorship with Impossible Foods.
The timing for the controversy also came at a poor time for Nathan's as the company reported fourth-quarter and full-year financial results on Wednesday.
At a time when the company should have been celebrating its growing year-over-year revenue, investors may have noticed the calls to boycott the company growing on social media platform X.
Nathan's reported fourth-quarter revenue of $28.99 million compared to $27.41 million in the previous year's fourth quarter. Earnings per share of 96 cents for the fourth quarter also came in ahead of the previous year's fourth quarter total of 80 cents per share.
NATH Price Action: Nathan's shares are down 1% to $69.27 on Thursday versus a 52-week trading range of $61.35 to $82.00. Nathan's stock is down 14.5% over the last year.
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