Thread by @APompliano

Companies across the country are raising their prices in order to combat rising costs.

There is nothing transitory about these price hikes.

Here are a few examples 👇🏽👇🏽👇🏽

Chipotle knows inflation is real:

- Increased wages to $15/hour
- Increased prices about 4%
- Q2 revenue higher than pre-pandemic

“There’s still that possibility that we could take additional pricing action to fully close the gap...So far, really, really good." - Chipotle CFO

Whirlpool won't be left behind:

“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." - CEO

Raw materials go up = Prices go up. Simple math.

Conagra ($16B biz) raised prices last quarter:

“We are pleased with the initial results, there will be a lag between the time we are hit with higher costs & when we realize the benefits of our actions."

"Our elasticities look good so far & we have more pricing coming" - CEO

Dominos is taking numerous actions:

- Increased delivery fees
- Increased menu prices
- Increased avg wages
- Franchises can do more unilaterally

“pricing is certainly one of the levers” to combat higher costs/wages says CEO

PepsiCo nails it:

“We’re seeing inflation in our business across many of our raw ingredients & some of our inputs in labor and freight and everything else...Is there somewhat more inflation out there? There is. Are we going to be pricing to deal with it? We certainly are” - CFO

When people tell you that "inflation is transitory," they are referring to the fact that prices won't continue to accelerate at a faster rate in the future.

They forget to mention that the current price increases are permanent. Businesses won't drop prices in the future.

Inflation is a complex topic.

There is no single driver that can be blamed.

Supply chain issues. Rising input costs. Need for higher wages.

But we also have insane fiscal & monetary policy.

Ignoring the policy impact is intellectually dishonest.

The cost of living is exploding.

Inflation (CPI) is the highest it has been in 13 years and core inflation (no energy or food included) is the highest it has been in 30 years.

Get educated. Think for yourself. No one is coming to save you from these issues.

Read more on this from @hannahmiao_ and @Thxamelian here:

1. cnbc.com/2021/07/23/com…

2. cnbc.com/2021/07/13/pep…

Have a great night :)