Inflation, as measured by the popular Consumer Price Index, rose 7.1% on a year-over-year basis in the month of November. While this figure came in below what many economists were forecasting, it is still at historically elevated levels. And this has investors thinking long and hard about how to position their portfolios for success. 

Here are three inflation-resistant stocks that should be on your radar right now. 

Chipotle Mexican Grill 

First on this list is Chipotle Mexican Grill (CMG 0.20%). The popular Tex-Mex restaurant chain continues to deal with rising costs for key inputs like beef, avocados, and packaging products. But the management team has been successful at raising menu prices to combat inflationary pressures. Over the past 19 or so months, Chipotle has hiked prices that customers pay four separate times. 

In the company's most recent quarter (ended Sept. 30), revenue increased 13.7% year over year to $2.2 billion. And Chipotle's operating margin expanded to 15.1% from 12.3% a year ago. This improved profitability is something investors should be extremely happy about because it demonstrates Chipotle's ability to thrive in a weakening economy. 

Despite these menu price increases, CEO Brian Niccol maintains an optimistic tone. "While it is difficult to predict the macro impact on future spending trends, we know our value proposition remains strong and we experienced minimal resistance to our price increase in the quarter," he said on the Q3 2022 earnings call. 

The stock's price-to-earnings ratio of 52 doesn't scream value, but investors might want to pay a premium for a business that is finding ways to successfully navigate the current environment. 

Costco Wholesale 

While some companies try to raise prices in the face of higher inflation, Costco Wholesale (COST 1.15%) focuses relentlessly on keeping its prices as low as possible; therefore, it is well-positioned to gain customer wallet share in an economy like the one we're in today. In fact, its average markup of 11% is significantly lower than that of other major retailers. 

Costco has certainly proven that it can shine as a top shopping destination for consumers by keeping prices low when inflationary pressures mount like they have throughout 2022. But this intense attention to value doesn't mean there isn't pricing power in the business model. 

The company operates a membership-based system, which costs $60 per year for the basic Gold Star plan. It has been five-and-a-half years since the last fee hike in June 2017. But management has hinted that another price increase could be on the horizon in the near future. 

With a membership renewal rate in the U.S. and Canada of 92.5%, and the fact that people are increasingly seeking out affordable places to buy their essentials, I see no reason why Costco can't successfully raise prices with minimal effect on churn. 

Costco's P/E of 35 is below the trailing-three-year average, meaning now could be a good time to buy the stock. 


Last on this list of inflation-resistant stocks is Lululemon Athletica (LULU -0.48%). The premium athletic apparel brand is known for selling high-quality merchandise at expensive prices. And this is clearly evident by looking at the company's superb gross margin of 55.9% in the fiscal 2022 third quarter (ended Oct. 30). 

But one huge red flag in Lululemon's latest earnings report was that the inventory balance surged 85% to $1.7 billion. The typical course of action by companies that might find themselves in this situation would simply be to discount merchandise aggressively in order to move items as quickly as possible, especially as we are fully in the critical holiday-shopping season. 

Lululemon generally doesn't follow this promotional pricing strategy, and it helps explain why the brand is so strong. CEO Calvin McDonald even acknowledged on the Q3 2022 earnings call that the company has actually been able to raise prices on 10% of its product mix. This pricing power helps explain that even in the face of soaring inflation, customers haven't shown any signs of tapering their spending on Lululemon's products. The business reported revenue of $1.9 billion in Q3, up 28% year over year. 

The shares, now at a P/E multiple of 36, have come down 13% since the company's latest earnings release. That looks like an attractive entry point.