Costco continues to accelerate its warehouse expansion program, opening 25 new warehouses globally in fiscal 2025—12 in the U.S., 7 in Asia-Pacific, and 6 in Europe—bringing its total count to 861 locations. Notably, the company has reduced ramp-up time for new stores by 15% compared with the 2018–2022 average, reaching mature sales levels in an average of 7 months. Costco’s innovative approach to site reuse, including transforming former big-box retail spaces and repurposing logistics facilities, has cut average build-out costs by 8%. These efficiencies support projected annual revenue growth of 7–9% over the next five years, according to management forecasts.

An investment of $1,000 in Costco stock at the start of 2006 would be worth approximately $27,600 today, including reinvested dividends, representing a compound annual growth rate (CAGR) of about 11.2%. By contrast, a parallel investment in the S&P 500 would have grown to $7,900 (CAGR of 6.1%). Even after a 6% share-price decline in 2025, Costco’s long-term performance underscores the resilience of its low-margin, high-volume model. Over the 20-year period, Costco’s average annual comparable-sales growth has been 6.8%, and the company has added over 100 million members, boosting its membership renewal rate to roughly 90%.

Costco’s board has raised its quarterly dividend for 16 consecutive years, reflecting a 9.5% compound annual growth in per-share payouts since 2010. At the most recent quarterly declaration, the yield stood at 0.53%, below peer averages but backed by a strong payout ratio of approximately 22%. Management has also authorized $7 billion in share-repurchase capacity through fiscal 2027, having deployed $3.2 billion in buybacks over the past 12 months. This combination of dividend growth and disciplined repurchases supports a total shareholder-return target of mid-teens over the next decade, according to consensus analyst estimates.

In a strategic move to deepen engagement with its over 80 million paid members, Costco has quietly increased the cash-back rate on its branded credit card for warehouse fuel purchases to 5% (up from 4%), capped at $7,000 in annual spend. This adjustment raises the maximum annual gas-reward benefit from $280 to $350. Outside of warehouse fuel, eligible gas and electric-vehicle charging continue to earn 4% cash back, with all other purchases at standard 1–3% rates. By boosting cardholder incentives without altering the no-annual-fee structure, Costco aims to drive upgrades to its co-branded card and sustain its high member-renewal rate, which has hovered near 90% for more than a decade.