Costco CFO Richard Galanti revealed last Thursday that its famous hot dog-and- soda combo deal of $1.50 will remain in place despite record high inflation.
Galanti said at an earnings call that the profit margins the company is seeing in the gas and travel sectors allow Costco to make up for losses at the food court.
Galanti told an analyst from Truist Securities that those things help us be more aggressive in other areas, or as you mentioned, hold the price on the hot dog and soda forever.
Galanti said Costco was fortunate in that it did not struggle like other businesses during the COVID-19 epidemic.
He said that the improvement in the bottom line was better than we were two years ago.
The retailer's famous $1.50 hot dog- and soda combo has remained unchanged since it was first introduced in the 1980 s, but the company was forced to raise the price of its 20 ounce sodas from $0.59 to $0.59. 69, and its chicken, bake from $2.99 to $3.99.
The Bureau of Labor Statistics reported last month that consumer goods were up 8.3% year-over-year.
Costco reported last week that it had fourth quarter earnings of $1.87 billion, a profit of $4.20 per share.
The results were more than expected by Wall Street. Earnings were $4.12 per share, according to the average estimate of 12 analysts surveyed by Zacks Investment Research.
The warehouse club operator posted revenue of $72.09 billion in the period, surpassing Street forecasts. Eight analysts who were surveyed by Zacks predicted that there would be $71.84 billion.
For the year, the company reported profit of $5.84 billion, or $13.14 per share. Revenue was reported as $226.95 billion.