How Costco Really Makes Money

Costco on stocks-llm

A hot dog and a soda at Costco still cost $1.50, the same as in 1985. So how does a store that refuses to raise prices earn $9.2 billion a year? Costco sells goods at close to cost: of every $100 you spend, $1.94 is left over. The profit comes from the membership card: $5.9 billion in fees in fiscal 2026, more than half of its $11.7 billion operating income.