Costco’s $4.99 chicken has long been one of its main calling cards, and the warehouse club has gone to extreme measures to keep it at that price point.
“Costco is willing to go to great lengths to keep its prized rotisserie chickens at $4.99,” CNN reported. “The company has been recruiting farmers in Nebraska over the past few years and recently opened a massive $450 million poultry complex there.”
The Warehouse Club loses money selling chickens but makes up for it by increasing sales and simply by attracting members to its stores.
“A loss-making product is a product that costs more to make or manufacture than it sells for, but that attracts people to come in and buy other products to make up for the hit to a company’s bottom line,” Food Republic reports. “As far as Costco is concerned, the approximately three-pound bird is a beloved item and its ultra-low price tag is worth a trip to the store for many.”
However, the cheap chicken appears to be putting Costco members at risk for salmonella infections, according to a report shared by Sentient Media.
“The report, prepared by advocacy group Farm Forward and based on an analysis of USDA Food Safety and Inspection Service inspection data from 2020 to 2024, focuses on Costco’s Lincoln Premium Poultry chicken slaughter and processing plant in Fremont, Nebraska. The plant slaughters more than 100 million chickens annually for its rotisserie chicken and Kirkland Signature raw chicken brands and reportedly supplies about 40% of Costco’s chicken,” the news site shared.
The data shows some worrying things about Costco chicken.
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The Costco Fremont plant has failed monthly rolling USDA salmonella tests since it opened in 2019, receiving the worst Category 3 rating 92% of the time, the report said.
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Farm Forward Director Andrew deCoriolis told Sentient that in the most recent period, from September 2023 to July 2025, 100% of the Fremont plant received a Category 3 rating, indicating that contamination rates are worsening.
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Consumer Reports also ranked the Costco plant as one of the most polluting poultry plants in the United States, based on data collected through July 26, 2025.
Consumer Reports shares tips on how to avoid eating contaminated meat.
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Wash your hands with warm, soapy water throughout the cooking process—before preparation, after handling raw meat, and again when you’re done. Also clean the knives you use for meat before using them to cut other foods.
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Use separate cutting boards for meat and other foods.
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Cook poultry to an internal temperature of 165° F and check with a meat thermometer.
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When grocery shopping, keep raw meats in disposable bags and 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 leaks.
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Thaw frozen meat in the refrigerator to keep it below 40°F. Doing so will prevent bacterial growth.
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Avoid rinsing raw meat as it can spread bacteria around the sink or counter.
Just because the USDA fails a plant, it doesn’t mean it can prevent its product (in this case, chicken) from reaching consumers.
“The agency does not have the authority to halt plant operations, prevent 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 respond to a request for comment for this article submitted through its media request form.
As a long-time (but not current) Costco member, I’ve never been a fan of its rotisserie chicken. This chain injects the chicken with a salt solution, and I’ve found whole chickens at Fresh Market and Whole Foods to be more expensive but still affordable and better options.
Former CFO Richard Galanti explained during Costco’s first-quarter 2023 earnings call that the $4.99 price is part of the chain’s brand promise.
“Part of it is also consciously keeping the price of chicken at $4.99 … and keeping the price of hot dogs. All of those factors are taken into consideration as well. But we know that can be a driver of business,” he said.
During a 2015 earnings call, he noted that the move cost the company money.
“When other companies are raising the price of chicken from $4.99 to $5.99, we’re willing to keep the price of chicken at $4.99, if you will, and get $30 to $40 million a year in gross margin,” Galanti said, according to the Seattle Times. “That’s what we do for a living.”
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Costco will sell about 137 million rotisserie chickens in 2023According to the foodie.
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Costco keeps selling More than 100 million roasted chickens per year starting at least 2020”, added the Los Angeles Business Journal.
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Previous files/reports show Sales volume in fiscal year 2022: 117 million vehicles and Will reach 106 million in 2021According to the chain’s 2023 annual report.
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This article was originally published by TheStreet on January 13, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.