Costco has a serious problem with its $4.99 chicken

costco$4.99 chicken became one of the most important calling cards and warehouse club has taken extreme steps to keep it at this price point.

“Costco is willing to go to extreme lengths to keep its prized rotisserie chickens at $4.99,” he said. CNN. “He has been recruiting farmers in Nebraska for the last several years and recently opened a vast $450 million poultry complex of his own in Nebraska.”

The warehouse club loses money selling the chickens, but makes up for it with additional sales and attracting members to its stores.

“A loss leader is a product that costs more to make or manufacture than it sells, but it gets people in the door and buying other products that will offset the company’s bottom line.” food republic reported. “In Costco’s case, the nearly three-pound birds are a beloved item whose ultra-low price tag alone is worth a trip to the store for many.”

But these cheap chickens appear to be putting Costco members at risk of salmonella. Responsive Media.

” Report by advocacy group Farm Forwardis based on a foundation Analysis of 2020-2024 USDA Food Safety and Inspection Service inspection data and focuses on Costco’s Lincoln Premium Poultry chicken slaughtering and processing plant in Fremont, Nebraska. plant massacres More than 100 million chickens per year The news site reported that Costco sources about 40% of its chicken for its rotisserie chicken and Kirkland Signature raw chicken brand.

The data showed some alarming things about Costco’s chicken.

• Costco’s Fremont facility has consistently failed the USDA’s monthly salmonella tests since opening in 2019, receiving the worst Category 3 rating at 92%, according to the report.

• Andrew deCoriolis, director of Farm Forward, told Sentient that in a more recent period from September 2023 to July 2025, the Fremont plant received a 100% Category 3 rating, suggesting that contamination rates have worsened.

• Consumer Reports The Costco facility also ranks among the dirtiest poultry facilities in the United States, based on data collected through July 26, 2025.

Consumer Reports shared tips on how to avoid eating contaminated meat.

• Wash your hands with warm soapy water throughout the cooking process (before preparation, after handling raw meat, and when you’re done). Also wash knives used on meat before using them to cut other foods.

• Use separate cutting boards for meat and other food items.

• Cook poultry to an internal temperature of 165° F and use a meat thermometer to check.

• When shopping at the grocery store, keep raw meat in a disposable bag, away from other foods, especially foods you can eat without cooking, such as fruits and vegetables.

• Store raw meat in a bag or bowl in the refrigerator to prevent leakage.

• Thaw frozen meat in the refrigerator to stay below 40° F. Doing this will prevent bacteria from growing.

• Avoid rinsing raw meat because bacteria can spread across your sink or counter.

Just because the USDA fails a plant doesn’t mean it can stop its products, in this case chicken, from reaching consumers.

“The agency does not have the authority to stop the operation of the facility, prevent raw meat from reaching store shelves, or recall raw meat products. Contaminated chicken can still be sold in grocery stores nationwide,” Sentient said.

Costco did not immediately return a request for comment for this story made via a media request form.

As a long-time but not current Costco member, I have never enjoyed rotisserie chicken. The chain injects its chickens with a saline solution, and I find the pricier but still affordable whole chickens at Fresh Market and Whole Foods to be a better option.

Former CFO Richard Galanti reveals at Costco meeting Earnings announcement for the first quarter of 2023 He said the $4.99 price is part of the chain’s brand promise.

“Part of that is consciously keeping the price of chicken at $4.99 … and keeping the price of the hot dog. All of those things come into that equation, too. But we know that can be the driver of things,” he said.

in 2015 earnings callHe stated that this move brought costs to the company.

“While others were raising chicken prices from $4.99 to $5.99, we were prepared to eat $30 to $40 million a year by keeping the gross margin at $4.99,” Galanti said. Seattle Times. “This is what we do for a living.”

• Costco sold nearly 137 million rotisserie chickens in 2023accordingly chowhound.

• Costco has a sale more than 100 million rotisserie chickens annually since at least 2020added LA Business Magazine.

• Previous filings/reporting show 117 million units sold in fiscal year 2022 And 106 million in 2021according to chain’s 2023 annual report.

Related: Costco quietly added a major credit card perk

This story was first published by . Street First appeared on January 13, 2026 Retail section. Add TheStreet at: Preferred Source by clicking here.