At Costco's Nebraska slaughterhouse, 2 million chickens are processed weekly to supply the retailer's famous $4.99 rotisserie chicken — a price unchanged since 2009 despite US chicken prices nearly doubling. Costco sold 157.4 million rotisserie chickens globally last year, nearly double a decade ago. The bird acts as a loss leader, with former CFO Richard Galanti acknowledging $30-40 million in annual gross margin losses. Analyst Mark Jordan estimates production costs at $3.50 per 4.5lb bird, with marinade, transport, and cooking pushing Costco "underwater per bird."

To mitigate losses, Costco built a $500 million slaughterhouse operated by subsidiary Lincoln Premium Poultry, which began operations in 2019. Former COO Walt Shafer said the plant gave Costco leverage with third-party suppliers. The facility supplies about one-third of chicken for Costco's US stores and created a $500 million poultry industry in Nebraska, according to University of Nebraska-Lincoln specialist Brad Lubben. Plans for a second plant were shelved due to soaring construction costs.

The chicken's placement at the back of warehouses drives impulse purchases. Protein analyst Amy Smith notes shoppers pass clothes, books, snacks, and wine before reaching it. CFO Gary Millerchip said the $4.99 price softened customer complaints when membership fees rose in 2024. TikTok recipe videos regularly exceed 1 million views, cementing the chicken's cult status.