FILE - Customers wait in line to order below signage for the Costco Kirkland Signature $1.50 hot dog and soda combo on June 14, 2022, in Hawthorne, California. (Photo by PATRICK T. FALLON/AFP via Getty Images)
Costco’s departing chief financial officer has weighed in on whether customers might see changes to its long-standing $1.50 price for the hot dog and soda combo.
The warehouse retailer hasn’t increased the hot dog and soda combo’s cost in the roughly four decades it has offered it, thanks to a pledge from its founders, according to FOX Business.
On Tuesday, Costco CFO Richard Galanti told Bloomberg that the deal "is probably safe for a while" after his nearly 40-year tenure ends on Friday. Former Kroger CFO Gary Millerchip will succeed Galanti.
The retiring CFO previously faced questions about maintaining the combo’s price tag.
In September 2022, when inflation was much higher than its current level, Galanti said the margin on its gas and travel businesses "help us be more aggressive in other areas or … hold the price on the hot dog and the soda a little longer, forever."
Meanwhile, Costco has made some recent changes to food options at its food courts. The retailer stopped offering its churro and added a chocolate chip cookie in its place, Galanti revealed on March 7 during Costco’s second-quarter earnings call. The cookie costs $2.49.
Costco’s food courts also recently began offering a $6.99 turkey sandwich, according to Galanti.
The retailer has said its ancillary businesses like food courts and gas stations encourage Costco members to visit its warehouses more often. Costco has 875 warehouses worldwide.
Costco membership price hike: Still a 'when, not if'
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Earlier this month, Costco also said it would keep its membership fees at their current prices, a move that may allow customers to breathe a sigh of relief — for now.
The retailer, however, did not rule out a future hike.
"It’s when, not if, still," Galanti said during the company's second-quarter earnings call, referring to membership fees.
Galanti told analysts and investors that renewal rates, new member sign-ups and loyalty "are continuing in the right direction." These are some of the factors that the company looks at when deciding on membership fees.
The company reported its total cardholders increased to 132 million as of the end of the second quarter, a 7.3% increase over the same period a year ago.
"It really is a function, and I don’t think it would be done simply because, hey, things have slowed down a bit, let’s do it now," Galanti added. "We like the fact that we’re performing well. We like the fact that almost all metrics are going in the right direction in our business right now. We’ve got plenty of runway left."
He said Costco "will at some point, I’m sure, do it," and joked it will "be on [Gary Millerchip’s] watch, not mine."
Costco taps into silver coins sales after gold bar success
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In the meantime, Costco has turned to selling silver coins after its gold bars flew off the shelves.
"You’ve probably read about the fact that we’re selling 1-ounce gold bars," Galanti said in December. "We sold over $100 million of gold during the quarter."
Now, Costco is selling 1-ounce Canada Maple Leaf Silver Coins, 25 count, for $679.99.
The coins from the Royal Canadian Mint have an image of King Charles III on one side and a maple leaf on the other. They have a face value of 5 Canadian dollars each.
The silver coins are 99.99% pure, Costco said.
Members can buy a maximum of five tubes of silver coins, which are non-refundable.
FOX Business contributed to this report. It was reported from Cincinnati.