Costco gives update on $1.50 hot dog, soda combo staple
Costco gives update on $1.50 hot dog, soda combo staple
Costco Confirms Continuation of $1.50 Hot Dog and Soda Deal
New CFO's Assurance
Gary Millerchip, Costco's new CFO, reassured investors during his first earnings call that the price of the popular $1.50 hot dog and soda combo will remain unchanged.
Historical Price Stability
The combo has maintained its price for about four decades, demonstrating Costco's commitment to offering value to its customers.
Impact on Customer Traffic
Despite economic challenges, the enduring low price of the combo has contributed to consistent foot traffic at Costco locations.
What specific assurances did Costco's new CFO, Gary Millerchip, provide regarding the price of the $1.50 hot dog and soda combo?
In his first quarterly earnings call as Costco's new CFO, Gary Millerchip assured investors that the price of the popular $1.50 hot dog and drink deal would not be going up anytime soon. He directly addressed the speculation regarding the budget-friendly combo's fate and confirmed that the $1.50 hot dog price is safe. This assurance aligns with the company's long-standing commitment to maintaining the price of the combo, which has been a fixture at Costco's food court for roughly four decades.
What role do Costco's gas and travel businesses play in maintaining the price of their food court offerings?
Costco's gas and travel businesses play a crucial role in maintaining the price of their food court offerings, specifically the popular $1.50 hot dog and soda combo. The company has not increased the combo's cost in the roughly four decades it has been offered, partly due to the profits from their gas and travel businesses.
The margins from the gas and travel businesses allow Costco to be more competitive in other areas or hold the price on the hot dog and soda combination. This strategy enables the company to maintain a budget-friendly option for their customers while still generating revenue from other sources.
In summary, Costco's gas and travel businesses provide the financial flexibility for the company to maintain the low price of their food court offerings, attracting customers and contributing to the overall success of the wholesale club.