Costco to keep $1.50 hot dog deal after selling 245M combos; eyes share of $130B tariff refunds
Costco sold a record 245 million $1.50 hot dog–soda combos last year and will keep the price to support membership loyalty; fees made up 64% of profits. The retailer is among 2,000+ firms seeking a share of $130 billion in Section 301 tariff refunds after a federal court invalidated levies.
1. Hot Dog Combo Price and Sales Record
Costco’s $1.50 hot dog and soda combo price has remained unchanged since 1985, and the company sold a record 245 million combos in fiscal 2025. CEO Ron Vachris affirmed the price will stay fixed, reinforcing the item’s status as a value symbol for customers.
2. Membership Fees Drive Profitability
Membership fees accounted for 64% of Costco’s profits in fiscal 2025, with the hot dog combo serving as a loss leader to boost warehouse visits and fee renewals. This pricing strategy underpins Costco’s high-margin model and customer loyalty.
3. Pursuit of Section 301 Tariff Refunds
Costco is one of over 2,000 companies filing claims to recoup part of $130 billion in Section 301 tariffs after a federal court invalidated existing levies. The company is implementing an electronic process to submit refund claims and bolster cash flow.