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Mar 2023
40m 23s

Companies Are Telling Us the Real Reason...

bloomberg
About this episode

The persistence of inflation is a bit of a mystery to economists. Many of the shocks of the last few years have faded. And the Fed has raised rates aggressively, with seemingly only a modest impact. So why are companies still raising prices? If you listen, they actually explain a lot of their reasoning on corporate conference calls. On this episode of the podcast, we speak with Samuel Rines, managing director at Corbu, who has gone through numerous transcripts and come to the conclusion that management teams are still being rewarded for "price over volume" strategies. Companies in this environment are happy to sacrifice a bit of volume sales in order to keep moving through large price increases. He walks us through what he's learned from companies like Wingstop, Tractor Supply, and PepsiCo. And he talks about what you should expect to see when the inflationary urge finally starts to crest.

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