Whirlpool Chipotle Businesses Raise Prices Due to Inflation
An employee sprinkles cheese on a burrito at a Chipotle Mexican Grill restaurant in Hollywood, California.
Patrick T. Fallon | Bloomberg | Getty Images
Many companies that released quarterly results in the past two weeks said they were raising prices to offset rising costs for labor, raw materials and other inputs. Several large companies have had preliminary success with their pricing actions.
Movements are coming as recent data shows prices jump at record rates in the midst of economic recovery from the Covid pandemic.
The Federal Reserve believe inflation will eventually moderate and is largely the result of strong demand exceeding supply as the economy recovers after the pandemic. But companies aren’t waiting to find out if the Fed is right, implementing price hikes they might not be so quick to reverse even if input costs fall.
Chipotle made headlines in June after announcing that he increase menu prices 3.5% to 4% to offset the increase in his average hourly rate to $ 15.
The decision paid off; the restaurant chain reported second quarter revenue surpassing pre-pandemic levels and said he was considering further price hikes if inflation persists.
“There is always this possibility that we can take additional pricing action to completely close the gap… Let’s see how the menu price continues to be accepted by customers. So far, really, really good. really see no resistance, ”Chipotle Chief said. Financial agent John Hartung said Tuesday when calling the results.
Whirlpool washing machines for sale at the Airport Home Appliance store in Concord, California.
David Paul Morris | Bloomberg | Getty Images
Home appliance maker Whirlpool has raised prices amid rising raw material costs. CEO Marc Robert Bitzer said during Thursday’s earnings call that the company had already started to “see the benefits”.
“We are confident that sustained strong consumer demand and our previously announced cost-based pricing actions will offset the impact of global supply constraints and rising input costs,” Bitzer said.
Conagra, the food processing company whose brands include names like Slim Jim and Reddi-wip, reported strong results from its price hikes during the company’s fourth-quarter earnings call on July 13.
“We started implementing pricing actions on some of our products in the fourth quarter due to the initial inflation we experienced. Very early reading of the data for these actions is that our elasticities look good up to present and that we have more awards to come, “Sean M. Connolly, President, CEO and Director of Conagra said.
Domino’s Pizza CEO Richard Allison, Jr., said Thursday during the restaurant chain’s second quarter earnings call that “prices are definitely one of the levers” to offset wage increases due to inflationary pressures on the market. labor market.
According to Allison, Domino’s corporate stores have slightly increased their delivery costs and menu prices, and franchisees have the option of doing the same in their own businesses.
Food and beverage giant PepsiCo said he would use his pricing power to offset inflationary pressures.
“Like everyone else, we are seeing inflation in our business for a lot of our raw materials and some of our inputs in labor and freight and everything in between,” said PepsiCo Managing Director Ramon. Laguarta, during the company’s second quarter earnings call on July 13. .
“Is there a little more inflation? There is. Are we going to price it to deal with it? We sure are,” added Hugh Johnston, CFO of PepsiCo.
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