Start with a nice squarish text… I used Aldrich from Google fonts:
With the text selected go to Type > Create Outlines. The text will not be editable after this point.
Use the Direct Selection Tool (A key) to stretch out some letters by dragging over half of them and using the ←+→ arrow keys while holding Shift to transform width quickly:
Then once you’re done drag the letter group into the Brushes Panel and choose Pattern Brush and click OK, then click OK again.
Now toggle the visibility of your text group and using the Ellipse Tool and holding Shift, draw a small circle and click your brush in the Brushes Panel to apply it to the circle.
Now you can scale/rotate your circle and/or double-click on your brush in the Brushes Panel, tick the ‘Preview’ box and mess with the settings to get the look you’re after… You’ll want to add a little bit of spacing for the start/end. This is what I came up with:
Looking at your example it seems clear that whoever made it has also swapped out the ‘H’ and the ‘U’ for normal unaltered text of the sans serif variety. If that’s what you want to do, it’s probably easiest to just expand the appearance of the brush on the circle, then use the individual warped letters as key objects to align your new letters to.
Hope this helps