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From $4.99 rotisserie chicken to $1.50 hot dog kits, Costco has been a longtime favorite of price-conscious shoppers.
Amid soaring food prices, inflation-ridden consumers are looking to stretch their money even further, in Costco’s favor. The wholesaler ended the second fiscal quarter of 2023 with 123 million cardholders, up about 7% year-over-year, Costco chief financial officer Richard Gallante said during the March 2 earnings call.
The retailer reported revenue of US$55.27 billion fiscal second quarter of 2023, missing analyst expectations by $55.54 billion, according to Refinitiv consensus estimates. However, the company reported earnings per share (EPS) of $3.30, beating analysts’ expectations of $3.21.
While the retailer doesn’t plan to increase annual membership fees right now, shoppers may need to be prepared to pay more for membership in the future. When asked about a possible fee increase, Gallante said “It’s a matter of when, not if.”
It’s been almost six years since Costco increased its membership fee. In June 2017, Costco increased the price of its Standard Gold membership from $55 to $60, and increased the price of its Executive membership from $110 to $120.
As of 2022, Costco is the third-largest retailer in the United States by sales revenue, according to the National Retail Federation.2022 Top 100 Retailers List. “
Costco reported its financial results for the second quarter after the bell on March 2nd. The next day, shares fell slightly by 2.15% and ended the session at $475.26 per share.
Here’s how much money you’d have as of March 3 if you had invested $1,000 in the company a year, five, and 10 years ago.
Here’s how much money you’d have as of March 3, 2023 if you invested $1,000 in Costco one, five, and 10 years ago.
If you invested $1,000 in Costco a year ago, your investment would be worth about $898 as of March 3, according to CNBC’s calculations.
If you invested $1,000 in Costco five years ago, your investment has doubled to $2,639 as of March 3, according to CNBC’s calculations.
And if you invested $1,000 in Costco a decade ago, it had ballooned to $5,124 as of March 3, according to CNBC’s calculations.
If you’re interested in investing in Costco, Walmart, or any other company, remember: The stock market is unpredictable, and you shouldn’t use a stock’s past performance to predict how well it will do in the future.
A passive investing strategy tends to make more sense for most investors, rather than picking individual stocks. Experts usually recommend investing in low-cost index funds, which can give your portfolio a wide range of companies.
Investing in the S&P 500 could be a great place to start, for example. It is a market index that tracks the stock performance of 500 large US companies, which can introduce diversity to your portfolio.
As of March 3, the S&P 500 is down just over 7% compared to 12 months ago, according to CNBC’s calculations. However, the index has increased by about 50% since 2018 and has grown by about 166% since 2013.
Get CNBC for free Warren Buffett’s Guide to Investingwhich summarizes the #1 billionaire’s best advice for ordinary investors, the do’s and don’ts, and three key investing principles into a clear and simple how-to guide.
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