Costco CFO Gary Millerchip assured during his first earnings call that the price for a hot dog and drink combo would remain fixed at $1.50.
This price point has been in place since Costco co-founder James Sinegal was at the helm as CEO. Sinegal, who retired in 2011, vowed to keep the price unchanged. Recently, speculation had arisen that production cost increases might necessitate a price hike.
“To clear up some recent media speculation, I also want to confirm the $1.50 hot dog price is safe,” Millerchip stated at the outset of his first earnings call as CFO.
During the third-quarter earnings call, Costco reported making $54.6 billion in net sales, reflecting an over 9% growth from the previous quarter. This resulted in a net revenue of $1.68 billion for the period.
Costco continues to expand its store brand offerings, adding new products like makeup removing wipes, cinnamon rolls, and walking shoes. The company recently tested price reductions, such as lowering the price of its shrimp by one dollar and its pine nuts by five dollars.
The wholesaler has seen a consistent increase in memberships, boasting over 133 million members worldwide. Approximately 90% of members renew their annual memberships.
The membership fee is $60 a year for a standard membership and $120 a year for an executive membership.
