5 August 2019

Restaurants, Food Makers Find Consumers Are Willing to Pay Higher Prices

News

Higher prices on foods from Ritz crackers to burritos are helping restaurants and food makers boost sales and profits.

Mondelez International Inc., Chipotle Mexican Grill Inc., and McDonald’s Corp. are among the U.S. companies wagering that customers are willing to pay more as the record-long economic expansion continues. Some are notching revenue at the expense of customer counts or unit volumes.

The higher prices and more premium products are helping their balance sheets and pushing up shares. The restaurants subset of the S&P 500 has risen 32.2% this year through Friday, while the broader index has gained 17%.

Source