BUSINESS

Corporations raise prices as consumers spend ‘with a vengeance’

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Corporations raise prices as consumers spend ‘with a vengeance’

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

The company looks to its competitors because it drives up its price — but they’re also charging more.

“There are nine competitors that we track, and seven out of nine announced price increases in the first quarter, and one of them did not increase prices at the end of last year,” said Darren Wells, its chief executive officer. Financial Officer, said on the call. Goodyear saw profit margins expand last year, driven by price increases.

The restaurant family that includes Outback Steakhouse, Bloomin’ Brands, plans to increase prices across its brands by about 5 percent to cover rising labor and food costs — and, with efficiency improvements, it plans to increase its profits. managing for.

Speaking about the last quarter, Christopher Meyer, Chief Financial Officer of Bloomin’ Brands, said, “It has become clear that the 3 percent pricing we discussed earlier is designed to address the rising inflationary pressures of our industry.” was not enough.” “Given that we haven’t increased the price of ingredients menus since 2019, we believe 5 percent is reasonable.”

Mr Meyer noted that operating inflation was 4.9 percent and labor inflation 8.9 percent in the last quarter of 2021, but the company managed to increase its profits through improving efficiency by simplifying its menu and cutting down on food waste.

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

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