Costco has accelerated its warehouse expansion program, opening 25 new locations in fiscal 2025 and targeting 30 in fiscal 2026. Leveraging faster permitting processes and a streamlined store design template, the company has reduced the average time from site selection to grand opening to 12 months from 18 months two years ago. In select U.S. markets, Costco is repurposing underused big-box and grocery-anchored retail centers, converting approximately 10 former department-store sites into fully operational warehouses in the past year. Management forecasts that the expanded footprint, combined with higher membership density in suburban markets, will contribute an incremental $2.5 billion in annual sales by fiscal 2027.

An initial $1,000 investment in Costco stock two decades ago, held through late 2025, would now be worth $27,600 including dividends, compared with $7,900 for a S&P 500 equivalent investment. This performance stems from sustained high-single-digit same-warehouse sales growth—8.2% in the first quarter of fiscal 2026—and consistent membership growth, with 4.5 million new members added over the trailing 12 months and an executive membership upgrade rate of 35%. The core warehouse club model, unchanged since the 1980s, continues to deliver industry-leading gross margins in the low teens and operating margins above 4.5%, underpinning long-term earnings per share growth of 12% compounded annually over the past ten years.

Costco has quietly boosted cash-back rewards for its co-branded Visa card, raising the rate on in-warehouse fuel purchases to 5% from 4%, applicable to the first $7,000 of annual spending (up from $7,000 with a previous $4% rate). This change increases the maximum annual fuel rebate to $350 from $280. Purchases outside Costco fuel stations and electric vehicle charging will continue to earn 4% cash back up to the same cap, then 1% thereafter. The incentive is expected to accelerate upgrades to paid credit-card memberships among the company’s more than 80 million cardholders and support Costco’s high renewal rate, which has averaged 90% over the past five years.