I don't think it's hyperbole to say that the American public would start a nationwide riot if the price of a Costco hotdog ever increased. I have reason to believe that there'd be absolute chaos on an unprecendented scale- fire, frenzy, fury, the whole 3-for-1 deal were the cost to rise a quarter.
Which is why, perhaps, Gary Millerchip, the new CFO of Costco felt the need to make a statement to quell potential violence from disgruntled shoppers.
"To clear up some recent media speculation, I also want to confirm the $1.50 hot dog price is safe," said Millerchip, shortly after welcoming attendees to the company's Q3 earnings call.
Or maybe, it's because the previous CFO, Richard Galanti, issued a statement vaguely supporting hot dog stability before his departure.
Galanti, like Millerchip, had frequently discussed the price of the combo deal during Costco's quarterly earnings calls, and once remarked in 2022 that the $1.50 price would remain in place "forever." Earlier this year, however, Galanti appeared to indicate that Millerchip could possibly hike the price, telling Bloomberg that the $1.50 combo deal's price might only be "probably safe for a while" after his departure.
MICHAEL BARTIROMO, The Hill
Galanti's quote didn't inspire confidence in the public. Naturally, tensions were high during the changing of the guard, and Millerchip had to resort to gentle words to pacify the good people.
Millerchip's bold stance and Galanti's ambiguous one were possibly both made in the interest of self-preservation, though, as Costco co-founder Jim Sinegal once threatened CEO Jim Sinegal with death if he ever changed the price.
"If you raise the effing hot dog, I will kill you. Figure it out."
It's safe. The public is safe. The CFO's life is safe. No one panic.
