Costco's latest earnings call made one thing clear: members are still showing up, and they're still hunting for value.
With grocery prices up roughly 25% since 2020, according to USDA data, the warehouse club has become a second grocery store for millions of American households.
The question is which items actually save you money once you factor in that $65 annual membership fee.
Gas remains the bluntest instrument in Costco's playbook.
The chain consistently undercuts nearby stations by 15 to 40 cents per gallon, and at a 12-gallon fill-up once a week, that spread can cover most of a basic membership before you ever walk through the front door.
If you commute, this alone is the math that matters.
Costco's pharmacy fills generics at prices that frequently beat insurance copays, and you don't need a membership to use it.
The same goes for the food court, where the $1.50 hot dog and soda combo has survived every inflationary wave since 1985.
Then there's the rotisserie chicken, still holding at $4.99 while rotisserie birds at regular supermarkets have crept toward $8 or more.
At roughly three pounds, it's cheaper per pound than raw chicken breast at many grocers, and it anchors two or three meals.
The catch is that you have to eat it fast — these are not built for a week in the fridge.
Kirkland Signature products are where the real margin disappears.
The store-brand coffee, olive oil, vanilla extract, and paper towels routinely match or beat name brands on quality testing, often because they're made in the same facilities.
Costco's markup on Kirkland items is famously thin, which is why the chain makes most of its profit on memberships, not merchandise.
Bulk paper goods and cleaning supplies still pencil out for families of three or more.
A 30-roll pack of toilet paper or a gallon of dish soap costs more upfront but lands well below per-unit grocery store pricing.
For singles or couples, though, storage space and spoilage can wipe out the savings entirely.
Fresh produce in jumbo packs spoils before small households finish it.
Bakery muffins and giant snack bags are portion-control disasters.
And the treasure-hunt layout is engineered to send you out with things that weren't on your list.
There's also the executive membership math.
The $130 tier pays 2% back annually, so you need roughly $3,250 in spending to break even on the upgrade over the basic card.
Watch the monthly coupon book, but don't treat it as a shopping list.
The discounts rotate, and the items are chosen to move inventory, not to match your pantry.
Clip what you already buy, skip the rest.
Our take: Costco works best as a disciplined weekly stop for gas, rotisserie chicken, staples, and pharmacy refills — not as a place to wander.
If you walk in with a list and walk out with a list, the membership pays for itself.
Final Thoughts
If you treat it like a Saturday outing, the $65 is just the entry fee to a very expensive hobby.