MercadoLibre and Chipotle: 2 Consumer Names With Serious Pricing Power​

Pricing power is one of the best qualities to look for in a business. It means a company's product is so valuable to customers that it can raise prices without losing demand. Over time, that kind of leverage helps companies stay profitable during rough economic patches.

Two consumer-facing leaders showing that kind of strength today are MercadoLibre (NASDAQ: MELI) and Chipotle Mexican Grill (NYSE: CMG). Here's why.

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1. MercadoLibre

MercadoLibre continues to widen its competitive lead in much of Latin America. It offers a compelling ecosystem of services across marketplace shopping, credit cards, mobile payments, and more. It demonstrates solid pricing power -- a sign that there is no alternative to the value it offers its customers.

The clearest sign of pricing power is its growing transaction take rate, which measures its e-commerce revenue relative to the total value of all transactions (gross merchandise volume) on its marketplace. Its e-commerce take rate rose to 25.2% in the third quarter of 2025, up from 18.4% in the same quarter two years ago. This shows the company is extracting more value from each transaction.

The take rate is climbing, while demand continues to grow. Unique active buyers rose 26% year over year last quarter. The company continues to add "Amazon-like" features to attract customers, including free same-day shipping and loyalty benefits through the Meli+ membership program.

MercadoLibre has built a powerful growth flywheel. In its fintech segment, monthly active buyers rose 29% year over year to 72 million last quarter. The company's credit card offers attractive benefits, including free financing and cashback through Meli+. It's a powerful cross-sell opportunity that MercadoLibre can leverage to build strong pricing power -- supporting long-term earnings growth.

Analysts expect earnings to grow 32% annually in the coming years. With leadership in both e-commerce and fintech, investing in MercadoLibre should be rewarding for years to come.

2. Chipotle Mexican Grill

Chipotle has delivered solid returns to investors over the last 10 years, with shares up 352% even after the recent dip. This reflects consistent operating performance in a highly competitive industry. Its service quality, where its tasty menu is prepared quickly, has translated into pricing power.

The Tex-Mex restaurant chain has regularly increased menu prices while maintaining demand. Menu prices increased 5.2% in 2023, 2.9% in 2024, and 2.3% through the first three quarters of 2025. Those price hikes in 2023 and 2024 didn't hurt customer traffic, as the company delivered same-store sales growth of more than 7%.

The past year has been a challenge for restaurants, as fewer customers are eating out. Chipotle reported a 7% year-over-year increase in total revenue last quarter, with same-store sales up just 0.3%. Despite weaker growth, it retains an attractive value position, with management noting that its prices are 20% to 30% below peers. This suggests there may be room to raise prices while still offering good value.

Chipotle's pricing power and growth potential should serve shareholders well. The company has nearly 4,000 locations today, and management believes it can reach 7,000 locations in the long term. That growth potential explains why the stock still trades around 33 times forward earnings, even after falling 41% from its prior high.

John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Chipotle Mexican Grill, and MercadoLibre. The Motley Fool recommends the following options: short March 2026 $42.50 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.