It’s been documented that Jim Senegal, founder of Costco Wholesale Corp. (NASDAQ: COST), once told the retail giant’s CEO Craig Jelinek that if he raises the price of “the effing hot dog, I will kill you. Figure it out.”
And so when Costco’s chief financial officer was asked whether the retailer would consider raising the price of the combo, he jokingly responded with “lightning just struck me.”
At the company’s fiscal fourth-quarter earnings call last week, CFO Richard Galanti said that it will always be other parts of the business that will keep the hot dog and soda combo’s price at the almost mythical $1.50, the price it has been since 1985.
In May, Marketwatch put the actual cost of the hot dog combo at $4.11.
“Some businesses that are doing well with margin … those things help us be more aggressive in other areas, or, as you mentioned, hold the price on the hot dog and the soda a little longer — forever,” he said.
It’s just the hot dog and soda (refillable, mind you) combo that’s safe from inflation. Other food court items have seen increases in the past few months. The popular chicken bake has gone up from $2.99 to $3.99, and the 20-ounce soda is now $0.69 from $0.59 early in the summer.
Information for this briefing was found via Twitter, Costco and CNBC. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
