TwinsTalkStocks, 8 year old twins Ashay Jorel & Devin Kalel, shop for values at Costco (COST)

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Sol Price opened the first Price Club in San Diego. The warehouse was a series of old airplane hangers owned by – fun fact – Howard Hughes.

Costco opened its first warehouse in Seattle in 1983. Jim Sinegal, a founder, used to work for Sol Price.

In 1993, Costco and Price Club merged.

Today Costco (ticker symbol COST) has 697 warehouses. 487 of them are the U.S. Costco expects to open 30 warehouses this year.

Costco drives a lot of traffic to the stores. In 2015, Costco had over $10B in gas revenue. Gas Buddy says Costco is the #1 value brand for gas in 2016. It’s gas is cheaper by 19%

91% of members renew their membership. Their average annual household income is $156,000 a year.

The breakup between American Express (AXP) & COST is final. For the past 16 years, AMEX was the only credit card accepted by COST. COST made up 10% of all AMEX cards in circulation and 8% of all $AMEX billed business in 2014. It’s a huge blow for AMEX to lose the COST partnership. Today AMEX sold its COST co-branded portfolio to Citigroup (C) for $1B.

COST missed earnings last quarter after 3 straight beats in the 3 proceeding quarters. Winter weather & lower gas prices could have hurt revenue this past quarter. By if COST announces that they are increasing the cost of their annual membership, then that should be able to increase their earnings the next few quarters.

The number one selling product is – you guessed it – toilet paper.

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