A employee sprinkle cheese on a burrito at the Chipotle Mexican Grill restaurant in Hollywood, California.
Patrick T. Fallon | Bloomberg | .
Consumer brands from Chipotle Mexican Grill to Whirlpool are dealing with inflation passing higher costs on their customers through price excursions.
Many companies who reported quarterly results in the past two weeks they said they are raising prices to compensate rising labor costs, raw materials and other entrances. Several major companies have seen the preliminaries success from their price actions.
The moves come as recent data show prices jump to record rates in middle of the economy recovery from the Covid pandemic.
The Federal Reserve believes inflation will eventually moderate and is in much of the result of tall demand surpassing the offer like economy restarts from the pandemic. But companies don’t wait to find out if the Fed is right, implementing price rises may not be so quick to roll back even if the input costs arrive down.
Chipotle made titles in In June, after announcing that it would raise menu prices from 3.5% to 4% to offset the rise in his own media hourly rate for $ 15.
The decision paid off; the restaurant chain reported second-quarter revenue that exceeds pre-pandemic levels and said it is considering more price excursions down the line if inflation persists.
“There is still room for further price action to fully bridge the gap … Let’s see ‘ how the menu price continues to be accepted by customers. So far, really, really good. Not really seeing any resistance, “Chipotle Chief Financial Officer John Hartung said on the earnings call Tuesday.
Hydromassage wash machines for home appliances sales at the airport store in Concordia, California.
David Paul Morris | Bloomberg | .
Appliance manufacturer Whirlpool has raised its prices in the face of higher raw material costs. CEO Marc Robert Bitzer said: on Thursday earnings call that the company already started to “see the benefits”.
“We are confident that a strong consumer supported demand and ours previously announced cost-based price actions will offset the impact of global supply constraints e rising input costs, “Bitzer said.
Conagra, the food processing company whose brands include names like Slim Jim and Reddi-wip, reported strong results from her price excursions during the fourth-quarter earnings call July 13
“We have started to implement price actions on some of our products in fourth quarter related to the initial inflation we experienced. Very early reading on data from those actions indicate that our elasticities seem good so far, and we have more prices in arrival “, Sean M. Connolly, president, CEO e. of Conagra director She said.
Domino’s Pizza CEO Richard Allison, Jr., said on the restaurant Chains second-quarter earnings call Thursday that “the price certainly is one of levers “to offset wage increases due to inflationary pressures in the job market.
According to Allison, the Domino company stores they have slightly increased delivery charges and menu prices and affiliates have the ability do the same in their businesses.
Food and beverage giant PepsiCo has said it will use its price power to offset inflationary pressures.
“Like everyone else, we are seeing inflation in our business through many of our subjects prime and some of our inputs in work, goods and everything in between, “said PepsiCo CEO Ramon Laguartata on the company second-quarter earnings call July 13
“Is there a little? more inflation out there? There is. Are we going to be bargain prices? with it? We sure are, ”Hugh Johnston, head of PepsiCo financial official, added.
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