COST - Here's How Much Money Costco Stands to Make From Its Fee Hike
2024-07-16 08:41:00 ET
It was the announcement investors had been waiting for. Last week, Costco Wholesale (NASDAQ: COST) finally said that it would raise its membership fee by $5 starting Sept. 1.
That increase isn't likely to affect members. But $5 extra for every single one of Costco's tens of millions of members is a lot of money for the company. Let's see how much, and why investors are greeting this news so enthusiastically.
Costco last raised its fee in 2017, also by $5. In the past, it has raised it every five years on average. Analysts have been bugging management about when the next fee hike would happen since a bit before the five-year mark in 2022.
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Here's How Much Money Costco Stands to Make From Its Fee Hike