Business

Corporations raise prices as consumers spend ‘for revenge’

“It’s really been a very, very good constructive pricing environment that we’ve seen right now, probably the best in recent memory,” said Richard J. Kramer, managing director at Goodyear , said on February 11 earnings call.

The company looks at its competitors as they drive their prices up – but they’re also charging more.

“There are nine competitors that we tend to track, and seven of the nine announced price increases in the first quarter and one of them didn’t raise prices right away at the end of last year,” said Darren. Wells, Chief Financial Officer, said on the call. Goodyear saw profit margins increase last year, in part due to price increase.

The family of restaurants that includes Outback Steakhouse, Bloomin’ Brands, is planning to raise prices by about 5% on its brands to cover rising food and labor costs – and by combining that with improving efficiency, they are trying to increase their profits.

Christopher Meyer, chief financial officer at Bloomin’ Brands, said of the last quarter: “It’s clear that the 3% price tag we discussed previously is not enough to offset the increased inflationary pressures that our industry is experiencing. I am facing. “Since we haven’t raised the price of our ingredients menu since 2019, we are confident that 5% is appropriate.”

Mr. Meyer noted that operating inflation was 4.9% and labor inflation was 8.9% in the final quarter of 2021, but the company has managed to increase profitability through efficiency improvements by simply Simplify menus and cut food waste.

In 2022, he said, the company expects beef inflation “in the mid-to-high range” and wage inflation “in the high single digits.”

https://www.nytimes.com/2022/02/27/business/economy/corporations-price-increases-inflation.html Corporations raise prices as consumers spend ‘for revenge’

Fry Electronics Team

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