Latest / Boardroom Conversations with Fexingo: CEOs, Strategy, and Corporate Leadership Explained
How the Costco Board Keeps the Five-Dollar Rotisserie Chicken Profitable
In this episode, Lucas and Luna explore a famous boardroom paradox: how Costco's leadership has held the line on a $4.99 rotisserie chicken for nearly 20 years, while inflation has pushed competitors to raise prices. They unpack the 2014 board decision to build a vertically integrated poultry supply chain—investing in a Nebraska chicken farm and processing plant—that turned a loss leader into a sustainable profit center. Lucas explains the specific margins, the cap on CEO compensation relative to the chicken price, and how the board's alignment of long-term incentives with member…
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