Whether you want to get quality products or you intend to save on your shopping, Costco is your go-to store. However, many people don’t even know who owns Costco and whether you can own a Costco franchise or not.
Let’s begin this guide by understanding who exactly owns this multi-billionaire corporation and how much it makes on a daily basis.
About Costco
Costco is an American multinational corporation that stands for Costco Wholesale Corporation. The company was started in 1983 in Seattle by Jim Sinegal and Jeffrey H. Brotman.
Then the founders started opening various stores in different locations. The second Costco store opened in Portland in October, and the third store was opened in Spokane in December of the same year.
Currently, Costco is operating in more than 850 locations, 587 of which are in the USA.
Who Owns Costco?
Costco is a publicly traded company with shares listed on the NASDAQ stock exchange. This means that there is no individual owner of the company. It is owned by individual, institutional, and corporate governance shareholders.
The company went public in 1985 with only 17 warehouses.
The current CEO of Costco is Craig Jelinek. He has been with the company since 1984 and has been working as the CEO since 2012.
Who Are The Largest Institutional Shareholders Of Costco?
Here are the top institutional shareholders of Costco:
| Name | Hold | Shares | Value |
|---|---|---|---|
| Vanguard Group Inc | 8.98% | 39,777,180 | $21.65B |
| Blackrock Inc | 6.89% | 30,549,214 | $16.63B |
| State Street Corp | 4.31% | 19,108,655 | $10.40B |
| Fmr LLC | 2.05% | 9,081,320 | $4.94B |
| Morgan Stanley | 2.04% | 9,029,161 | $4.91B |
| Geode Capital Management LLC | 1.90% | 8,430,277 | $4.59B |
| Bank Of America Corp | 1.70% | 7,545,188 | $4.11B |
| Bank Of New York Mellon Corp | 1.32% | 5,851,678 | $3.18B |
| Northern Trust Corp | 1.11% | 4,924,361 | $2.68B |
| Alliancebernstein LP | 1.03% | 4,553,268 | $2.48B |
Who Are The Largest Individual Shareholders Of Costco?
The top individual insider shareholder of Costco is Craig Jelinek, Charles Munger, and Patrick Callans.
1. Craig Jelinek
Jelinek is the present CEO of Costco. He owns around 333,075 shares of the company. His early career was in warehouse operations before he joined Costco in 1984.
Since Jelinek joined the company, Costco has been growing steadily, including the expansion of its operations in China.
2. Charles Munger
Munger is also a vice chairman of the board of directors of Berkshire Hathway Inc. He has been acting as an independent director of Costco since 1997.
Talking about the ownership of shares, Charles Munger owns around 166,489 shares of Costco.
3. Patrick Callans
Callans joined the company as a corporate counsel in the year 1994. He owns 65,361 shares of the company.
Patrick Callans is also the executive vice president of Administration for Costco.
Is Costco Owned By China?
No, Costco is not owned by China. It is publicly traded, and the largest shareholders of the company are comprised of both individual and institutional companies.
Chinese government might have an ownership stake in the company but does not own Costco. Costco also had its first store in China in 2019 and currently operates 2 of its stores in the Greater China region.
The company also sells its products, which are made in China, but they have products manufactured in other countries, too.
How Much Costco Stores Make In A Day?
Costco is a listed company. This makes them bound to share their financial information with the public. However, it does not disclose its daily earnings but rather publishes the annual financial earnings of the company.
According to its annual report of Costco, it made approximately 195,929 billion in the year 2021, which increased to $226.95 billion in 2022.
To calculate their per-day income, let’s take the revenue of 2022, which is $226 billion, then divide it by 365 days of the year. This gives the amount of their daily earnings, which is $619,178,082.19.
The primary income source of Costco is selling food and other products at its stores, but since it’s a membership-only store, the membership also ensures a consistent flow of income.
This is the revenue table of Costco, which represents the net income, revenue, number of warehouses and employees from 2005 to 2022:
| Year | Revenue in mil. USD$ | Net income in mil. USD$ | Price per Share in USD$ (year end) | Warehouses | Employees |
|---|---|---|---|---|---|
| 2005 | 52,935 | 1,063 | 34.96 | 433 | 115,000 |
| 2006 | 60,151 | 1,103 | 37.73 | 458 | 127,000 |
| 2007 | 64,400 | 1,083 | 50.26 | 488 | 127,000 |
| 2008 | 72,483 | 1,283 | 38.20 | 512 | 137,000 |
| 2009 | 71,422 | 1,086 | 43.68 | 527 | 142,000 |
| 2010 | 77,946 | 1,303 | 54.02 | 540 | 147,000 |
| 2011 | 88,915 | 1,462 | 63.06 | 592 | 164,000 |
| 2012 | 99,137 | 1,709 | 80.99 | 608 | 174,000 |
| 2013 | 105,156 | 2,039 | 98.67 | 634 | 184,000 |
| 2014 | 112,640 | 2,058 | 118.86 | 663 | 195,000 |
| 2015 | 116,199 | 2,377 | 141.43 | 686 | 205,000 |
| 2016 | 118,719 | 2,350 | 141.82 | 715 | 218,000 |
| 2017 | 129,025 | 2,679 | 173.55 | 741 | 231,000 |
| 2018 | 141,576 | 3,134 | 191.93 | 768 | 245,000 |
| 2019 | 152,703 | 3,659 | 279.64 | 782 | 254,000 |
| 2020 | 166,761 | 4,002 | 370.85 | 795 | 273,000 |
| 2021 | 195,929 | 5,007 | 563 | 815 | 288,000 |
| 2022 | 226,954 | 5,844 | 455.72 | 838 | 304,000 |
What Is Costco Membership?
Costco Membership lets you purchase products for personal use at any Costco location worldwide and also online at Costco.com.
A Costco membership ranges from $60 to $120.
They offer 3 types of membership
- Executive Membership
- Business Membership
- Gold Star Membership
Since the launch of the membership, Costco has made 66 million loyal customers with paid membership and 119 billion cardholders in 2022.
As of 2023, Costco has around 123 million people with Costco membership.
However, these memberships are only worth paying if you have a Costco store nearby, room for storage, and a way to transport the purchases back and forth.
What Are The Benefits Of Costco Membership?
Costco is the most prominent membership warehouse chain in the world. The basic need of shoppers is to save more without compromising the quality of the products, and Costco fulfills this need of its customers through its membership.
In addition to saving, you can also purchase or deliver groceries with Costco in bulk. Here are some benefits you can avail using a Costco Membership card:
1. Costco Travel
This feature allows its members to travel and save on booking cruises, hotels, and other destinations. Members of Costco receive exclusive saving deals while the negotiations are all done by Costco.
So, if you are a member of Costco, be ready to save on your travels.
2. Gift Cards
At Costco, you can also receive discounted gift cards if you are a cardholder. You can buy four $15 gift cards at just $44.99.
Costco provides a wide range of gift cards, including theme parks, performances, and movies.
3. Membership Sharing
Costco also provides the benefit of one more household member free of cost. This way, both individuals can enjoy the benefits of a Costco membership card.
4. Extended Warranties
This feature of the membership automatically extends the warranty on big-ticket items like computers. TVs, laptops, and projectors.
5. Discounted Prices For Business Owners
Costco also provides the opportunity to business owners to avail of its discounted prices. So whether you are looking for an insurance policy, payment processing, or bottled water delivery, Costco provides it all to its members.
Conclusion
Who owns Costco?
Costco is not owned by any individual but by a group of individuals and institutions, which are known as shareholders.
Costco was started in 1983 and now has grown steadily with the help of its business model. One thing to remember about Costco is that it only allows its members to purchase the products. So, if you are not a member, you can’t even enter the store.
FAQs
How many Costco stores are there in the world?
Costco has 853 warehouses around the world. The stores are in the USA, UK, Canada, Mexico, Japan, and Australia.
Can I go to Costco without a membership?
No, Costco only allows its members to enter the warehouse and purchase any of its items.
Is Costco associated with Mormon?
No, Costco is not associated with Mormons. It is a publicly traded company, which makes shareholders the owners of the company.