If you grew up in a household with a Costco membership, chances are you’ll instantly remember tasting everything from spinach and cheese ravioli to electrolyte drinks and the freezing sensation in the produce section and from the fridge, all to be rewarded with a post-a bite to eat in the iconic food court where a crispy $5 bill could make you feel like royalty.
With 578 Costco warehouses in 46 states – more locations than The Cheesecake Factory, In-N-Out Burger or Wienerschnitzel, to name a few – thousands of American consumers have come to know and love hot -dog Kirkland Signature. soda combo, which has maintained the same price of $1.50 since 1985.
And the company’s chief financial officer has confirmed that he is committed to making it happen.
During a presentation on Costco’s fourth quarter financial results, Richard Galanti told investors and reporters that there were other areas, including gasoline sales or Costco’s travel business, where they could potentially generate more profit to help offset the food court’s cheap meal.
Asked how Costco’s margins are holding up despite inflationary pressures and where they’re more aggressive on pricing, Galanti said, “Lightning just struck me.”
“Some businesses are doing well with a margin like gasoline on a smaller scale – in the travel business these things help us be more aggressive in other areas” like “holding down the price of the hot dog and soda a little longer, forever.”
Earlier this year, another Costco executive also said the signature element of the retailer’s prepared food court offerings would continue to be maintained at the same price.
Galanti also noted the sales strength of Costco’s fresh food business over a two-year period this past quarter.
“The enormity of the improvement in the bottom line, even now that we’re getting some of it back now, still net-net, was better than two years ago,” he explained of the company’s earnings. ‘company. “So all of those things help that process.”