This works until it stops working, if salaries stagnate when CPI goes up, this can only lead to reduction of sales. Obviously, it isn't just about US market, as all of these companies have presence in other countries. But I think wage stagnation paired with worries of a rising CPI is the subject of most developed countries. If you remove cheap credit, then the house of cards collapses in a day.
The stated central bank policies ( US and Canada ) for over a year was to raise inflation. GDP is up 6.4%, unemployment is dropping, wages need to go up, US retail sales recently set a new ATH. Their plan is working. There is no "house of cards". Hyperinflation is no more real as it was in 2009 when a bunch of people floated that theory.
Nothing like 5% inflation and nothing like hearing the professionals consistently saying its nothing but transitory ....
Chipotle just raised their menu prices by a gigantic 4% because now they have to keep up with paying their workers more money. So the consumer in the end always gets fu$ked. Chipotle hikes prices to cover the cost of raising wages https://www.cnbc.com/2021/06/08/chipotle-hikes-prices-to-cover-the-cost-of-raising-wages.html
Just like the employment report miss, and now the hotter than expected inflation data. Stock index all rally in the face of weak economic data. Take this for what it is...buy buy buy. Don't forget its contract rollover today.