Costco’s new CFO says $1.50 hot dog and soda combo is here to stay

Costco’s new CFO says $1.50 hot dog and soda combo is here to stay

New CFO. Same old hot dog.

Just two months into his tenure, Costco’s new finance chief Gary Millerchip has provided an update on the price of the chain’s iconic $1.50 hot dog and soda combo.

Speaking to CNN’s Nathaniel Meyersohn, Millerchip said the price will be staying at the same place it has been since 1995.

“I also want to confirm the $1.50 hot dog price is safe,” he reportedly said.

Millerchip’s reassurances are in line with one of the final interviews former CFO Richard Galanti gave after 40 years as one of the wholesale chain’s top executives.

“It’s probably safe for a while,” he told Bloomberg in March.

He added that while Costco could easily make decisions that would bring in more money, the chain was happy to deliver the value its customers love.

“We generate more money than we need every year,” he said. “I’m not trying to look for the last penny by doing something a little more risky.”

In 2022, Galanti also said that Costco would leverage other parts of its business to keep the ¼-pound all-beef frank at $1.50 for as long as possible.

“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.

Want to be a successful, confident communicator? Take CNBC’s new online course Become an Effective Communicator: Master Public Speaking. We’ll teach you how to speak clearly and confidently, calm your nerves, what to say and not say, and body language techniques to make a great first impression. Sign up today and use code EARLYBIRD for an introductory discount of 30% off through July 10, 2024.

Plus, sign up for CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life.

Original news source Credit:

You must be logged in to post a comment Login