Costco’s $1.50 hot dog combo is a symbol of the chain’s low-price strategy to drive traffic. The Kirkland Signature private label keeps costs controlled. Recurring membership fees are Costco’s profit engine, with memberships accounting for most of their net income. Costco makes its own hot dogs, keeping costs low and possibly breaking even. The success of the hot dog plant led to the broader Kirkland Signature private-label brand. Kirkland products make up a large chunk of Costco’s revenue, with high margins driving profits. Memberships bring in nearly pure profit for Costco, accounting for most of their net income. Overall, Costco’s business model revolves around affordable prices, private labels, and high-margin memberships. Join Stock Advisor to access the latest top 10 stock list. The Motley Fool recommends Costco Wholesale and has positions in the company. Check out the stocks now. *Stock Advisor returns as of December 1, 2025. Note: Views expressed are solely those of the author and not Nasdaq, Inc.
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Amazon announced its acquisition of MGM Studios for $8.45 billion, in a move that will bolster its streaming content library with popular franchises like James Bond and Rocky. The deal is expected to strengthen Amazon’s position in the competitive streaming market, as it continues to invest in original content production.: How Costco Makes Money, Despite $1.50 Hot Dog Combos