Chipotle Grapples Effectively With Inflation and Boosts Profits
Chipotle (NYSE: CMG) delivered its first-quarter update on April 26, revealing both rising sales and profits. The company has responded to increased costs for ingredients and labor by exercising its pricing power and raising what it charges for its dishes.
Customers remained willing to pay those higher prices, likely because they have observed prices increasing for a wide range of products and services. Therefore, Chipotle, even after its price increases, is not seen as providing a lower relative value.
Image source: Getty Images.
Source Fool.com
