Costco Launches New Energy Drinks, Raising Concerns for Celsius Shareholders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 07 2026
0mins
Should l Buy COST?
Source: Fool
- Increased Competition: Costco's launch of new energy drinks under its Kirkland Signature brand, priced at $19.99 for a 24-pack, significantly undercuts Celsius's $37.99 price, raising shareholder concerns about intensified market competition that could erode Celsius's market share.
- Sales Dependency: With Costco accounting for approximately 11% of Celsius's sales, the introduction of competing products poses a direct threat to Celsius's revenue, highlighting the company's vulnerable position in the market as shareholders express their worries.
- Brand Loyalty: Costco's Kirkland Signature products enjoy high customer loyalty, evidenced by membership renewal rates of about 92% in the U.S. and Canada and nearly 90% worldwide, underscoring the retailer's strong branding power.
- Global Expansion Plans: Costco aims to increase its warehouse count from 914 to 942 by the end of fiscal 2026, further expanding its market reach, and although its forward P/E ratio stands at 49, value investors may want to wait for a lower valuation before considering investment.
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Analyst Views on COST
Wall Street analysts forecast COST stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 984.750
Low
769.00
Averages
1061
High
1205
Current: 984.750
Low
769.00
Averages
1061
High
1205
About COST
Costco Wholesale Corporation (Costco) operates membership warehouses and e-commerce sites that offer a selection of nationally branded and private-label products in a wide range of categories. The Company buys the majority of its merchandise directly from suppliers and route it to cross-docking consolidation points (depots) or directly to its warehouses. It operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. It also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. The Company provides wide selection of merchandise, plus the convenience of specialty departments and exclusive member services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Costco Reports Over 9% Sales Growth in March
- Sales Growth Overview: Costco's comparable sales for March increased by over 9%, but when excluding the impacts of gas prices and foreign exchange, the actual growth rate was slightly lower than earlier months this year, indicating that consumers are more inclined to fill up rather than shop amid rising oil prices.
- Impact of Oil Prices: The spike in oil prices due to the war in Iran and uncertainty in the Middle East has incentivized consumers to visit Costco for cheaper gas, potentially driving additional foot traffic; however, actual in-store sales have not increased in tandem, suggesting that shopping behavior may be limited to fueling up.
- Stock Valuation: Costco's stock is currently trading at over 50 times earnings, indicating a premium valuation, and analysts recommend caution in purchasing the stock unless there is a significant price decline, as it remains expensive relative to its earnings.
- Market Outlook: While Costco may benefit from higher oil prices, its rising costs could offset some of the profit gains, and with rapidly changing geopolitical conditions, predicting future market performance remains challenging.
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- Product Differentiation Advantage: Unlike traditional ramyun, Ofood uses fresh kimchi from Korea's top kimchi brand Jongga, offering a unique texture and deep fermented flavor that appeals to a wide consumer base, particularly among younger demographics.
- Effective Marketing Strategy: Ofood successfully attracted a large Gen Z audience through active marketing efforts, including outdoor advertising in major cities and social media campaigns on platforms like Instagram and TikTok, complemented by large-scale sampling events at universities that enhanced brand awareness and purchase conversion rates.
- Channel Expansion Plans: Ofood plans to expand the availability of 'Real Kimchi Ramyun' at FreshCo from 70 to 150 locations nationwide in the second half of the year, further strengthening its distribution capabilities in the Canadian market, which is expected to drive sales growth and enhance brand influence.
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- Market Rally: Since March 30, the S&P 500 and Nasdaq have surged by 10.7% and 15.5%, respectively, reaching record highs, indicating a significant improvement in investor sentiment driven by hopes for a resolution to the Middle East conflict.
- Oil Price Decline: U.S. oil prices have dropped approximately 18% from their war peak of nearly $113 per barrel on April 6, alleviating inflationary pressures and supporting the stock market rebound, which further bolsters investor confidence.
- Top Performing Stocks: Stocks like Broadcom, Corning, Meta, and Amazon have excelled, rising 35.2%, 30.9%, 25.2%, and 23.7%, respectively, reflecting strong demand in the tech and infrastructure sectors that has propelled overall portfolio performance.
- Underperforming Stocks: Conversely, Nike, Salesforce, Johnson & Johnson, and Costco have seen declines, with Nike dropping 11.3% due to disappointing earnings, highlighting market concerns about its recovery, while Salesforce fell 4% amid worries about the impact of generative AI on its business model.
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Walmart's Membership Fee Hike: Implications for Costco Shareholders
- Membership Fee Increase: Walmart's Sam's Club is raising its membership fee from $50 to $60, following Costco's increase from $60 to $65 nearly two years ago, indicating intensifying competition in the warehouse membership sector.
- Competitive Market Dynamics: Although Sam's Club directly competes with Costco in the membership model, both chains have a similar number of locations, with 637 and approximately 600 stores respectively, and both operate internationally, complicating the competitive landscape.
- Sales Growth Comparison: In the fourth quarter of fiscal 2026, Sam's Club's U.S. sales increased by 2.9% year-over-year, while Costco's total sales grew by 7.4% in the second quarter of fiscal 2025, highlighting Costco's superior sales performance.
- Membership Migration Risk: With the narrowing membership fee gap, some Sam's Club members may be tempted to switch to Costco, especially as the difference decreases from $15 to $5, raising expectations for membership renewals across premium clubs.
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Sam's Club Follows Costco with Membership Fee Increase
- Membership Fee Increase: Sam's Club is raising its annual membership fee from $50 to $60, following Costco's increase from $60 to $65 two years ago, indicating intensified competition in their membership models.
- Positive Market Reaction: Costco's stock price rose after Sam's Club announced its fee hike, reflecting market confidence in Costco's long-term performance, particularly after reporting a 7.4% sales increase in its latest earnings report.
- Increased Membership Appeal: With the narrowing membership fee gap, some Sam's Club members may be enticed to switch to Costco, especially given Costco's reputation for superior products and services.
- Significant E-commerce Growth: Both companies reported a 23% increase in e-commerce sales, suggesting that the expansion of online channels will be a critical factor in future competition amid rising membership fees.
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- Dividend Increase: Costco Wholesale Corporation has announced an increase in its quarterly cash dividend from $1.30 to $1.47 per share.
- Annualized Dividend: The new dividend rate results in an annualized dividend of $5.88 per share.
See More
Costco Reports Over 9% Sales Growth in March
- Sales Growth Overview: Costco's comparable sales for March increased by over 9%, but when excluding the impacts of gas prices and foreign exchange, the actual growth rate was slightly lower than earlier months this year, indicating that consumers are more inclined to fill up rather than shop amid rising oil prices.
- Impact of Oil Prices: The spike in oil prices due to the war in Iran and uncertainty in the Middle East has incentivized consumers to visit Costco for cheaper gas, potentially driving additional foot traffic; however, actual in-store sales have not increased in tandem, suggesting that shopping behavior may be limited to fueling up.
- Stock Valuation: Costco's stock is currently trading at over 50 times earnings, indicating a premium valuation, and analysts recommend caution in purchasing the stock unless there is a significant price decline, as it remains expensive relative to its earnings.
- Market Outlook: While Costco may benefit from higher oil prices, its rising costs could offset some of the profit gains, and with rapidly changing geopolitical conditions, predicting future market performance remains challenging.
See More
Ofood Kimchi Ramyun Surpasses 1 Million Units Sold in Canada
- Strong Market Performance: Since its launch in Canada last October, Ofood's 'Real Kimchi Ramyun' has surpassed 1 million units in cumulative sales, quickly capturing market share due to its authentic Korean kimchi flavor, indicating robust consumer demand and brand recognition.
- Product Differentiation Advantage: Unlike traditional ramyun, Ofood uses fresh kimchi from Korea's top kimchi brand Jongga, offering a unique texture and deep fermented flavor that appeals to a wide consumer base, particularly among younger demographics.
- Effective Marketing Strategy: Ofood successfully attracted a large Gen Z audience through active marketing efforts, including outdoor advertising in major cities and social media campaigns on platforms like Instagram and TikTok, complemented by large-scale sampling events at universities that enhanced brand awareness and purchase conversion rates.
- Channel Expansion Plans: Ofood plans to expand the availability of 'Real Kimchi Ramyun' at FreshCo from 70 to 150 locations nationwide in the second half of the year, further strengthening its distribution capabilities in the Canadian market, which is expected to drive sales growth and enhance brand influence.
See More
Stock Market Surge: Nasdaq and S&P 500 Reach Record Highs
- Market Rally: Since March 30, the S&P 500 and Nasdaq have surged by 10.7% and 15.5%, respectively, reaching record highs, indicating a significant improvement in investor sentiment driven by hopes for a resolution to the Middle East conflict.
- Oil Price Decline: U.S. oil prices have dropped approximately 18% from their war peak of nearly $113 per barrel on April 6, alleviating inflationary pressures and supporting the stock market rebound, which further bolsters investor confidence.
- Top Performing Stocks: Stocks like Broadcom, Corning, Meta, and Amazon have excelled, rising 35.2%, 30.9%, 25.2%, and 23.7%, respectively, reflecting strong demand in the tech and infrastructure sectors that has propelled overall portfolio performance.
- Underperforming Stocks: Conversely, Nike, Salesforce, Johnson & Johnson, and Costco have seen declines, with Nike dropping 11.3% due to disappointing earnings, highlighting market concerns about its recovery, while Salesforce fell 4% amid worries about the impact of generative AI on its business model.
See More
Walmart's Membership Fee Hike: Implications for Costco Shareholders
- Membership Fee Increase: Walmart's Sam's Club is raising its membership fee from $50 to $60, following Costco's increase from $60 to $65 nearly two years ago, indicating intensifying competition in the warehouse membership sector.
- Competitive Market Dynamics: Although Sam's Club directly competes with Costco in the membership model, both chains have a similar number of locations, with 637 and approximately 600 stores respectively, and both operate internationally, complicating the competitive landscape.
- Sales Growth Comparison: In the fourth quarter of fiscal 2026, Sam's Club's U.S. sales increased by 2.9% year-over-year, while Costco's total sales grew by 7.4% in the second quarter of fiscal 2025, highlighting Costco's superior sales performance.
- Membership Migration Risk: With the narrowing membership fee gap, some Sam's Club members may be tempted to switch to Costco, especially as the difference decreases from $15 to $5, raising expectations for membership renewals across premium clubs.
See More
Sam's Club Follows Costco with Membership Fee Increase
- Membership Fee Increase: Sam's Club is raising its annual membership fee from $50 to $60, following Costco's increase from $60 to $65 two years ago, indicating intensified competition in their membership models.
- Positive Market Reaction: Costco's stock price rose after Sam's Club announced its fee hike, reflecting market confidence in Costco's long-term performance, particularly after reporting a 7.4% sales increase in its latest earnings report.
- Increased Membership Appeal: With the narrowing membership fee gap, some Sam's Club members may be enticed to switch to Costco, especially given Costco's reputation for superior products and services.
- Significant E-commerce Growth: Both companies reported a 23% increase in e-commerce sales, suggesting that the expansion of online channels will be a critical factor in future competition amid rising membership fees.
See More
COSTCO WHOLESALE CORP ANNOUNCES INCREASE IN QUARTERLY CASH DIVIDEND FROM $1.30 TO $1.47 PER SHARE, ANNUALIZED AT $5.88
- Dividend Increase: Costco Wholesale Corporation has announced an increase in its quarterly cash dividend from $1.30 to $1.47 per share.
- Annualized Dividend: The new dividend rate results in an annualized dividend of $5.88 per share.
See More
