People love getting the most bang for their buck. There aren’t many better places than Costco (NASDAQ: COST) to get bundles of wholesale food. If you’ve ever been to a Costco, then you know what an adventure it is walking around the store. Going to Costco can feel like an entire excursion, thanks to what the store has to offer. There are so many different places to sample food and you can almost be fed an entire meal just from what’s available.
You can find different household items and tons of outdoor patio sets. The price per ounce of food you get at Costco is amazing, relative to other stores. The store is known for having some of the best meats and organic foods around that are offered in bulk. The store was first founded in Seattle back in 1983. Today, they are found all over the world. Costco is also different than most stores since you have to have a membership just to shop there.
It only costs $60 for the whole year, so you can be rest assured your shopping needs will easily be met. Costco is also known for its amazing hotdog meal combo. At the front of each store is an area to get food if you’re still somehow hungry. This hotdog meal is still $1.99 and won’t rise any more than that. This has made customers feel special and thought of, while most companies would gladly increase the price, even if was just a little. Who exactly owns Costco and makes all of these decisions?
Who Owns Costco?
Costco isn’t just a store, it’s a store you can own part of. That’s right, the company is currently being traded on the New York Stock Market. As of December 1, 2023, the stock is selling for $596 per share. They’re doing something right to keep the value of the company that high. Today, the CEO of the company is W. Craig Jelinek, who also happens to be the President of the company.
Because it’s a publicly traded company, there has to be a Chairman. That title belongs to Hamilton E. James. It’s important to have a large board of members who make the final call on major decisions since it’s one of the largest companies for sale on the stock market. James Sinegal and Jeffrey Brotman were the two men who founded the company 40 years ago.
Sadly, Jeffrey passed away in 2017, while James is enjoying the retired life. When you’ve worked as hard as these guys to build a company from scratch, you deserve to enjoy life.
What’s the History of Costco?
James Sinegal and Jeffrey Brotman both came from humble beginnings. James was once a bagger at his local grocery store, while Jeffrey was an attorney who lived in Seattle. The idea came from James after he worked for another wholesaler, FedMart in the 1970s. The company first opened on the basis they could get up to a 9% discount on food items if they bought in bulk. Rather than just let the product sit around, they decided it would be smart to sell as much of it as they could, at a discounted rate to those who shop there.
By 1985, the company had multiple locations and decided to go public. Going public this early was one of the best decisions the company made. Rather than just sitting around and waiting for more revenue to come in, going public allowed the company to raise funds without having to go into debt to banks to expand. The fact that the company already had success before it wanted to go public showed investors how serious they were and that they had a trajectory that would work.
What Could Costco’s Stock Price Rise to?
Sitting at just under $600 per share now, Costco is by far and away the most valuable store in the stock market. One of the reasons it’s going to continue succeeding in this day and age is people trying to get the most value when they spend money. The last thing people want to do is have to go to the store once a week and spend $150 or $200 on food. Getting it out of the way just once and only spending $300 is a much more ideal option for a lot of families.
It looks like the stock is capable of going up to $680 per share by the end of 2024, making it one of the best investments you could make. Costco truly knows what they’re doing when it comes to helping people spend wiser and get the most bang for their buck. It’s one of the reasons people are willing to pay a membership fee just to shop there.
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