• Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Top Trading Strategy
No Result
View All Result
Home Breaking News

Costco CEO’s one-word answer to whether he would raise the price of hot dogs: “No”

by
July 11, 2022
in Breaking News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Some good news for inflation-weary Americans: There will be no price hike on Costco‘s hot dogs.

Related Posts

Chinese drone maker DJI is dominating the market – despite being blacklisted by the U.S.

CNBC Daily Open: January’s U.S. jobs reports is stunningly good

Time to buy the tech rally? Wall Street pros weigh in with their top stock picks

Bearish hedge fund manager Dan Niles names his top five trades for 2023

In an interview Monday on CNBC’s “Squawk on the Street,” CEO Craig Jelinek had a one-word answer when asked whether he would raise the signature food court item’s price: “No.”

Costco has continued to put up strong sales, even as other retailers have spoken about consumers becoming more budget-conscious and spending more on services instead of goods. It’s also avoided another recent problem for many retailers: excess inventory that’s racked up in warehouses and stores, which must now be packed away or marked down.

Yet amid nearly four-decade high inflation, Costco has raised the prices of some food court staples. Earlier this month, its chicken bake jumped from $2.99 to $3.99 and its 20-ounce soda rose by 10 cents to 69 cents. That prompted speculation that its hot dog’s super low price could be due for a hike too. The hot dog and soda combo has sold for $1.50 for decades, and was the subject of a Mental Floss article from 2018 that recently began circulating again.

In the article, Jelinek recalled approaching Costco co-founder and then-CEO Jim Sinegal. He told him the company was losing money over the iconic food item.

“I came to (Sinegal) once and I said, ‘Jim, we can’t sell this hot dog for a buck fifty,” Jelinek said, according to the article. “We are losing our rear ends.’ And he said, ‘If you raise (the price of the) effing hot dog, I will kill you. Figure it out.’ That’s all I really needed.”

Another aspect of Costco’s business has also been under scrutiny: When its membership fee might increase. Costco membership costs $60 a year or $120 a year for an executive membership, a higher tier option that includes additional discounts and perks.

The vast majority of Costco’s profit comes from the annual fees rather than from selling items. It has historically hiked membership fees every 5.5 years and its last increase was in June 2017, putting it on track for an increase soon, according to Corey Tarlowe, an analyst for Jefferies. Its membership fee typically increases by $10.

On Monday, Jelinek told CNBC that a membership fee is “not on the table right at the moment.”

“I made it very clear,” he said. “I don’t think it’s the right time. Our signups continue to be strong.”

Next Post

American Weed Stocks Are Cheap. They’re About to Get a Sales Bump.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Breaking News

Chinese drone maker DJI is dominating the market – despite being blacklisted by the U.S.

by
February 6, 2023
0

The world's biggest drone maker, DJI, is one of many companies that has found its products used on the battlefield...

Read more

Chinese drone maker DJI is dominating the market – despite being blacklisted by the U.S.

CNBC Daily Open: January’s U.S. jobs reports is stunningly good

Time to buy the tech rally? Wall Street pros weigh in with their top stock picks

Bearish hedge fund manager Dan Niles names his top five trades for 2023

Can I Buy a Home with an LLC?

When in Rome: Millennials are choosing to ‘maximize their 20s’ while minimizing their savings — but could it leave them living a Spartan life in their later years?

Load More

All rights reserved by www.toptradingstrategy.net

  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.