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Markets

From salsa to software, having muscle to hike prices lifts stocks

TSMC, Microsoft and Chipotle see shares soar after passing costs to customers

Chipotle Mexican Grill's share price has soared since the U.S. restaurant chain raised menu prices.   © Reuters

TOKYO -- Businesses that can pass along higher costs by raising prices for products ranging from chicken burritos to silicon chips have become the new darlings of global stock markets.

Chipotle Mexican Grill serves as the poster child for this trend. The U.S. restaurant chain raised prices by an average of 4% in early June to offset higher wages, and weeks later it reported second-quarter results that topped market expectations.

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