Costco’s chief financial officer has suggested that the wholesaler will keep its famous hot dog and soda combo at $1.50 forever.
During the company’s fiscal fourth quarter earnings call last week, CFO Richard Galanti was asked if the retailer would consider raising the price of its all-beef franc as it seeks to address tighter margins.
After joking that “lightening just hit me” after being asked the question — a reference to the $1.50 combo’s mythical stature with the company — Galanti said it will always be other parts of the company that will lower the price of keeping the hot dog in the same place it’s been around since 1985.
“Some companies that are doing well on margin… those things help us be more aggressive in other areas, or, like you said, hold the price of the hot dog and the soda a little longer — forever,” he said. .
Other Costco food court items have recently gone up in price, including the popular chicken bowl that went from $2.99 to $3.99 in July.
The price of a 20-ounce soft drink also rose from 59 cents to 69 cents in the summer.
Galanti’s comments echoed the words of Costco CEO Craig Jelinek, who was asked in July by CNBC’s “Squawk on the Street” if he thought the company would raise the price of its signature food court item.
“No,” he said.
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