‘Lightning just struck me’: Why Costco’s CFO says the price of the $1.50 hot-dog-and-soda combo is ‘forever’

Costco’s chief financial officer has suggested that the wholesaler will keep its famous hot-dog-and-soda combo at $1.50 “forever.”

During the company’s fourth-quarter earnings call last week, CFO Richard Galanti was asked whether the retailer would look at increasing the price of its all-beef frank as it looks to deal with tightening margins.

After joking that “lightning just struck me” after he got the question — a reference to the $1.50 combo’s mythical status at the company — Galanti said that it will always be other parts of the business that are keeping the hot dog’s price in the same place it’s been since 1985.

“Some businesses that are doing well with margin … those things help us be more aggressive in other areas, or, as you mentioned, hold the price on the hot dog and the soda a little longer — forever,” he said.

Other Costco food court items have increased in price recently, including the popular chicken bake which went up from $2.99 to $3.99 in July.

The price of a 20-ounce soda also rose from 59 cents to 69 cents over the summer.

Galanti’s comments echoed the words of Costco CEO Craig Jelinek, who in July was asked by CNBC’s “Squawk on the Street” if he thought the company would raise the price of its signature food court item.

“No,” he said.

Sign up now: Get smarter about your money and career with our weekly newsletter

Don’t miss: Actor Tom Hardy is now a champion fighter after surprise entry at a Brazilian Jiu-Jitsu competition