(Tatazeter) – The company’s new CFO and executive vice president, Gary Millerchip, gave a direct speech to analysts and investors during his first-ever Costco earnings call on Thursday afternoon.
Millerchip remarked, just after introducing guests to the company’s Q3 earnings call, “I also want to confirm the $1.50 hot dog price is safe to clear up some recent media speculation.”
From the time it was added to menus in the mid-1980s, Costco’s hot dog and Coke combo has always cost $1.50. However, some customers are unsure about the item’s future after reading remarks made recently by Richard Galanti, the former CFO of Costco.
Like Millerchip, Galanti had regularly spoken up to the combination deal’s price during Costco’s quarterly earnings calls. In 2022, he even declared that the $1.50 price would be the same “forever.”
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Though Galanti told Bloomberg earlier this year that the $1.50 combination deal’s pricing might only be “probably safe for a while” after his departure, it seemed as though Millerchip might raise the price.
According to former Costco CEO Craig Jelinek, Costco co-founder James Sinegal is the man behind the company’s well-known hot dog and its fixed price.
“I once went to [Sinegal] and told Jim that we couldn’t sell this hot dog for fifty cents. We’re going to lose our asses. In a 2018 interview, Jelinek recalled speaking with 425 Business. “And he threatened to kill you if you raised the effing hot dog.” Work things out.
To save costs, the company quickly started producing its hot dogs rather than obtaining them from outside sources, according to Jelinek.
Additionally, Galanti had stated in earlier earnings calls that the food court’s expenses are kept down by revenue from other areas of Costco’s company.
If verified, there’s a chance that the $1.50 hot dog offer will stand for the time being: Costco exceeded expectations by reporting a 9.1% growth in revenue for the third quarter of 2023 in its most recent earnings report.
According to Costco CEO Ron Vachris, “We’re seeing wins in several different categories” on Thursday.
