Very few companies have a true moat around there business. In most cases, a rival can find a way to beat its prices, match any services it offers, and compete in unexpected ways.

Costco  (COST)  does not have a unique business as Sam’s Club and BJ’s Wholesale operate under the same model, but it does have a moat. Once members are in, they’re very likely to stay members and, if there’s some sort of drop in renewals, the chain usually sees that a year out, giving it time to adjust its strategies.

It’s not being member-based that gives Costco its edge, but having a massive membership. That locked in customer base allows the chain to negotiate lower prices and membership fees provide about 60% of the company’s profit, so margins can be kept low.

CFO Gary Millerchip detailed the chain’s membership numbers during its fourth-quarter earnings call.

Those members pay $65 a year for a basic Gold membership or $130 for an Executive membership which comes with 2% cash bask up $1,250, and exclusive operating hours. That membership base pushed Costco to a number of new highs as well as a record.

Costco numbers keep climbing

Costco CEO Ron Vachris opened the earnings call talking about the chain’s growing warehouse count.

“In the fourth quarter, we opened 10 new warehouses, including a relocation in Canada, our 20th warehouse in Korea, our second warehouse in Sweden and 5 net new locations in the U.S. For the fiscal year, we opened 27 new warehouses, including 3 relocations for a total of 24 net new buildings. This brings our total warehouse count to 914 worldwide,” he shared.

The chain plans to open another 35 warehouses in fiscal year ’26, of which 5 are relocations.

He also shared some positive numbers for the chain and one record.

• Net sales came in just under $270 billion, an increase of over 8% versus last year.
• E-commerce sales exceeded $19.6 billion, increasing over 15%. 
• We had a record year for gas volumes, which benefited from longer gas station hours, new gas stations and expansions of existing gas stations as well.

Vachris also noted some other major events for Costco.

• We also recently celebrated a few milestones, including the 40th anniversary of our $1.50 hotdog and soda combo.
• We have just completed the rollout of Coca-Cola, the original soda partner from the 1985 inception of the iconic combo, to all food courts worldwide. 
• Our private label Kirkland Signature reached its 30th year anniversary this year. 

• Kirkland Signature sales penetration continued to increase, bringing an even more high-quality value to our members while offsetting potentially inflationary impacts from tariffs

“We are continuing to look at opportunities to move more KS product sourcing into the countries and regions where the items are sold and this is helping to lower cost as well as reduce emissions from transporting goods around the world,” he added.

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Costco is very proud of its $1.50 hot dog combo,

Image source: Fallon/AFP via Getty Images

Costco stock has been a steady winner

No matter how the market has performed, Costco stock has moved steadily upward. The company also pays a dividend and has done multiple special dividends over the years.

Costco’s stock price and dividends

• 2025 (as of October 7): Stock Price: $914.80

  Regular Dividend: $1.30 per share (quarterly)

  Annualized Dividend: $5.20

• 2024: Stock Price: $892.38

  Regular Dividend: $1.02 per share (quarterly)

  Annualized Dividend: $4.08

  Special Dividend: $15.00 per share (paid January 2024)

• 2023: Stock Price: $544.25

  Regular Dividend: $1.02 per share (quarterly)

  Annualized Dividend: $4.08

  Special Dividend: $15.00 per share (paid January 2024) StreetInsider.com

• 2022: Stock Price: $438.76

  Regular Dividend: $0.90 per share (quarterly)

  Annualized Dividend: $3.60

• 2021: Stock Price: $542.01

  Regular Dividend: $0.79 per share (quarterly)

  Annualized Dividend: $3.16

• 2020: Stock Price: $357.00

  Regular Dividend: $0.70 per share (quarterly)

  Annualized Dividend: $2.80

Source: Costco Investor Relations

Experts and analysts comment on Costco

After its most recent earnings report, JPMorgan analysts called Costo a “clear market leader” and said that it has “ongoing global/scaled momentum.” 

“No other major retailer has succeeded in every country it entered,” the analysts told Investopedia.

GlobalData Managing Director applauds Costco for its focus on value.

“That is Costco’s position on everything. It’s about offering value for money, whether you’re buying tires [or] a diamond ring,” he told Fortune.

Veteran portfolio manager Chris Versace of TheStreet Pro Chris Versace is bullish on Costco for different reasons.

“While many focus on how Costco helps its members stretch their disposable spending dollars, we love the differentiated membership business model that drives the high margin membership fee revenue stream,” he shared.

That’s something he expects to continue.

“We see that continuing to grow not only from the company’s 2025 membership price hike but also it’s expanding footprint. Throw in how the company has leaned into grocery and fresh foods, we see it picking up even more consumer wallet share this holiday season,” he added. 

Aggregate ratings on Costco stock

• According to StockAnalysis, 26 analysts cover COST, with an average 12-month target of $1,065.28 and a consensus rating of “Buy.” StockAnalysis
• MarketBeat cites a “Moderate Buy” consensus among analysts, with many targeting above current prices. MarketBeat
• Benzinga lists a consensus price target of $1,041.54 (some coverage groups report higher) and range from $890 to $1,225. Benzinga
• Nasdaq.com states that among 34 analysts, the consensus is “Moderate Buy,” with 17 “Strong Buy,” 4 “Moderate Buy,” and 13 “Hold.” Nasdaq

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