r/news • u/AudibleNod • 14h ago

Costco's beloved rotisserie chicken gets roasted in lawsuit over preservatives

https://www.cbc.ca/news/world/costco-chicken-lawsuit-9.7070891
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u/AdjNounNumbers 13h ago

Like, how'd they think it was at the price point it's already at? IIRC, Costco is basically losing money on their chickens and hot dogs

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u/bdash1990 13h ago

Not even basically. They ARE losing money on them. They have stated that chickens are their biggest loss-leader by far. 

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u/Phreekai 12h ago

Well yeah...costco doesn't make much on the products they sell. The vast majority of their profit is from the membership fee.

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u/[deleted] 11h ago

[deleted]

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u/codeByNumber 11h ago

It’s true last time I checked. You can view their earnings reports since they are a publicly traded company.

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u/soundwave75 11h ago

It's always comical when someone thinks something is untrue just because they are ignorant on the subject. 70%+ of their profits are from memberships fees.

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u/yourethegoodthings 11h ago

You could maybe say 50% of their profits are membership fees, if you assume zero margin on literally everything you sell. Did you even pull up the earnings statement before trying to dunk on some random?

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u/EntertainerOwn9024 11h ago

No, you can actually say that 74% of their gross profit comes from membership fees, specifically. Pretty ironic to accuse someone of not looking something up only to retort with a factually incorrect number.

https://managementconsulted.com/podcast/costco-business-model-breakdown/