COST - Costco Could Lose $389 Million A Year On Its Rotisserie Chicken Change
2024-07-17 15:54:06 ET
Summary
- Costco was willing to lose $30-$40 million annually on rotisserie chicken in 2015, but recent changes in packaging may lead to a $388.85 million net financial loss.
- Costco’s new policy is fixed on eliminating 4,000 metric tons of carbon dioxide emissions and saving an estimated 17 million pounds of plastic every year.
- New packaging saves on costs and environmental impact, but can result in a significant net financial loss of approximately $388.85 million annually.
- Investors should consider the financial implications of Costco's decision to change rotisserie chicken packaging, as it may result in significant annual losses.
As the 52 million Costco Wholesale Corporation ( COST ) members wait with bated breath for the company to increase membership fees of up to $10 per year, my analysis shows that a recent change in strategy can wipe away that entire revenue gain....
Costco Could Lose $389 Million A Year On Its Rotisserie Chicken Change