Costco’s $4.99 chicken was one of its major calling cards, and the warehouse club went to extreme lengths to keep it at that price.
“Costco is willing to go to extreme lengths to keep its prized rotisserie chicken at $4.99,” according to CNN. “Over the past several years, he has recruited farmers to Nebraska and recently opened a sprawling, $450 million poultry facility in Nebraska.”
The warehouse club loses money on the sale of the chickens, but makes up for it with additional sales and simply by luring members into its stores.
“A loss leader is an item that costs more to make or manufacture than it sells for, but gets people to come in and buy other items that offset the hit to a company’s bottom line,” Food Republic reported. “At Costco, the three-pound birds are a beloved item whose ultra-low price alone is worth a trip to the store for many.”
Those cheap chickens, however, appear to be putting Costco members at risk for salmonella, according to a report shared by Sentient Media.
“The report, by the advocacy group Farm Forward, is based on an analysis of USDA Food Safety and Inspection Service inspection data from 2020-2024 and focuses on Costco’s Lincoln Premium Poultry processing and slaughter plant in Fremont, Nebraska. About 40 percent of Costco’s chicken,” the news site reported.
The data showed some worrying things about Costco’s chicken.
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Since the Costco plant in Fremont opened in 2019, it has consistently failed the USDA’s monthly run-through tests for salmonella, receiving the worst Category 3 rating 92 percent of the time, the report said.
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In a more recent period, from September 2023 to July 2025, the Fremont plant received a Category 3 rating 100 percent of the time, Farm Forward director Andrew deCoriolis tells Sentient, suggesting contamination rates are getting worse.
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Consumer Reports also lists the Costco plant among the most contaminated poultry plants in the U.S., based on data collected through July 26, 2025.
Consumer Reports shared tips on how to avoid eating contaminated meat.
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Wash your hands in warm, soapy water throughout the cooking process—before preparing, after handling raw meat, and again when you’re done. Also, wash knives used on meat before using them to cut other foods.
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Use separate cutting boards for meat and other food.
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Cook the poultry to an internal temperature of 165°F and use a meat thermometer to check.
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While shopping at the grocery store, keep raw meat in a disposable bag away from other foods, especially those you might eat without cooking, such as fruits and vegetables.
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In the refrigerator, store raw meat in a bag or bowl to prevent spillage.
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Thaw frozen meat in the refrigerator so that it remains below 40°F. Doing so will prevent the growth of bacteria.
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Avoid rinsing raw meat as it can spread bacteria around the sink or counter.
Just because the USDA has failed a factory doesn’t mean it can stop its products, in this case chicken, from reaching consumers.
“The agency does not have the authority to shut down the plant, stop raw meat from reaching store shelves, or recall raw meat products. Contaminated chicken can still be sold in grocery stores across the country,” Sentient reported.
Costco did not immediately return a request for comment for this story submitted through its media request form.
As a longtime but not current Costco member, I’ve never liked its rotisserie chicken. The chain injects its chickens with a saline solution, and the more expensive but still affordable whole chickens from Fresh Market and Whole Foods are a better option.
Former CFO Richard Galanti explained during Costco’s Q1 2023 earnings call that the $4.99 price tag is part of the chain’s brand promise.
“Part of it is also consciously keeping the price of the chicken at $4.99 … and keeping the price of the hot dog. All those things go into that equation as well. But we know that can be a business driver,” he said.
In a 2015 earnings call, he noted that the move cost the company money.
“When others were raising their chicken price from $4.99 to $5.99, we were willing to eat, if you will, $30 million to $40 million a year in gross margin by keeping it at $4.99,” Galanti said, according to The Seattle Times. “This is what we do for a living.”
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Costco sold an estimated 137 million rotisserie chickens in 2023according to Chowhound.
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Costco sold over 100 million rotisserie chickens annually from at least 2020added the LA Business Journal.
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Previous impressions/report shows 117 million sold in fiscal year 2022 and 106 million in 2021according to the chain’s 2023 annual report.
Related: Costco has quietly added a major credit card perk
This story was originally published by TheStreet on January 13, 2026, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.