Costco CEO Craig Jelinek says hot dog price doesn't rule out price hike

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Costco CEO Craig Jelinek says hot dog price doesn't rule out price hike

Over the past 30 plus years, Costco has been known more for its legendary $1.50 hot dog and soda combo than its steady stream of solid financial results.

The mouth-watering price is apparently here to stay despite stubbornly elevated inflation.

Longtime Costco CEO Craig Jelinek tells Yahoo Finance he has no plans to raise the price of the hot dog soda combo, nor does he have plans to reduce the price for it, as rival Sam's Club lowered the price for its similar offering to $1.38.

Jelinek said that the company makes its own hot dogs from a production plan, which helps from a cost perspective, and we are very happy with our $1.50 hot dog.

The 2022 Yahoo Finance Company of the Year sold a lot of hot dogs and other merchandise in its most recent quarter.

The warehouse retailer reported late Thursday that sales of the first quarter of same-store sales increased 6.6% from a year ago, boosted by strength in gas and food sales. Membership fee income and earnings went up 5.7% and 3%, compared to the previous year.

The costco stock was up slightly on Friday, even though quarterly earnings slightly missed analyst forecasts. The company didn't announce a long-awaited Wall Street increase in membership fees.

Jefferies analyst Corey Tarlowe said in a note to clients that the membership model of Costco continues to drive predictable sales and profitability in an increasingly uncertain environment.

Brian Sozzi is an anchor at Yahoo Finance. You can follow Sozzi on Twitter and LinkedIn.