Perhaps inspired by Costco Wholesale’s recent decision to buy olive oil from the land of Socrates, Barclays analyst Meredith Adler asked this past Thursday what may have been the most profound question in the long history of earnings calls.
“What is your philosophy about chickens?” Adler asked during a call that followed Wednesday’s release of Costco’s earnings.
She was talking, specifically, about Costco’s wildly popular $4.99 rotisserie chicken — and whether it will start charging more if the wholesale price of chicken soars amid a massive slaughter of U.S. birds due to the widespread epidemic of avian flu.
Turns out Costco does have a philosophy that would have been familiar to the ancient Greeks, who were also master traders: Keep ’em cheap.
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