Costco makes decision about $1.50 hot dog-and-soda combo as inflation soars

Despite months of decades-high inflation, a top Costco Wholesale executive stated the big-box retailer has no plans to alter the price of its $1.50 hot dog and soda combo at its shops.

During the company's fourth-quarter results call on Thursday, Costco CFO Richard Galanti reaffirmed that the deal's low price point will remain in place.

In order to maintain sales margins for its hot dog-and-soda bargain and other value products, an analyst questioned whether Costco was lowering prices in other areas of its business.

When the combination was brought up, Galanti made the remark, "Lightning just struck me." He continued by saying that higher-margin industries like gas and vacation sales aid Costco in maintaining its discount offers.

Galanti continued, "Those things either help us be more aggressive in other areas, or as you mentioned, keep the price on the hot dog and the Coke a little longer - forever.

Over the past year, Costco and other retailers have raised prices, passing on to customers the increased costs of goods and commodities.

Although it has marginally decreased recently, August's inflation rate of 8.3% was higher than forecast.

Costco price inflation was roughly 8%, according to Galanti's estimate, with hikes "a touch higher on the food and sundries side" in the fourth quarter.