The prices are raising due to fundamental cost. The cost of making your Big Mac or frozen burrito are increased.
Thus, BigCorpFood has to manage price (too expensive and less consumers buy their products) and cost (too much cost means no profit).
BigCorpFood would really like to sell you a hundred frozen burritos at $0.99 that cost them $0.09. That would be ideal.
Less ideal but realistic would be selling you frozen burritos at $2.99 that cost $2.79
Even less ideal - but still workable for short periods of time - is selling you burritos for $2.99 that cost $3.10
What BigCorpFood doesn't want is to sell you frozen burritos at $9.99 that cost $9.79. That is really bad for them. They will sell very few of those burritos, and make almost no profit.
BigCorpFood stock price is more about introducing "New Deluxe Spicy Chicken Burrito, available for $3.10!" that cost $2.75. If eg Beef is getting more expensive and BigCorp can sell you cheaper chicken thigh and save a profit margin, that will help their stock a whole bunch.
ps: Oh, and re "your food/gas prices go into the income statement..".No, they go into the revenue statement. Income = Revenue - Cost.
The money goes around in a big circle. The big mac is pricier because the price of beef went up, for example. So the farmer is making more money. Or perhaps the supplier of feed to the farmer. Somewhere, someone is making more money; it’s not like there’s a link in the supply chain where all the do is set money on fire.
Also: sales is recorded on the income statement, no-one claimed that sales = income.
Thus, BigCorpFood has to manage price (too expensive and less consumers buy their products) and cost (too much cost means no profit).
BigCorpFood would really like to sell you a hundred frozen burritos at $0.99 that cost them $0.09. That would be ideal.
Less ideal but realistic would be selling you frozen burritos at $2.99 that cost $2.79
Even less ideal - but still workable for short periods of time - is selling you burritos for $2.99 that cost $3.10
What BigCorpFood doesn't want is to sell you frozen burritos at $9.99 that cost $9.79. That is really bad for them. They will sell very few of those burritos, and make almost no profit.
BigCorpFood stock price is more about introducing "New Deluxe Spicy Chicken Burrito, available for $3.10!" that cost $2.75. If eg Beef is getting more expensive and BigCorp can sell you cheaper chicken thigh and save a profit margin, that will help their stock a whole bunch.
ps: Oh, and re "your food/gas prices go into the income statement..".No, they go into the revenue statement. Income = Revenue - Cost.