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.
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