Group 1: Eli Lilly and Co. (LLY) - Eli Lilly's shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year, with a growth of 18.2% compared to a decline of 1.7% in the industry [4] - The demand for Eli Lilly's GLP-1 drugs, Mounjaro and Zepbound, remains strong, contributing significantly to top-line growth in 2024 [4] - However, sales of Mounjaro and Zepbound were disappointing in the second half of 2024, raising concerns about moderating demand [5] - Declining sales of Trulicity and rising pricing pressure on some drugs are notable headwinds for the company [5] Group 2: Exxon Mobil Corp. (XOM) - Exxon Mobil's shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year, with a growth of 19.6% compared to 14.5% in the industry [6] - The company's high-value assets in the Permian Basin and Guyana have driven robust production growth, doubling upstream earnings since 2019 [6] - Refining margins are pressured due to global capacity increases, leading to softening refining profits [8] - Commodity price volatility poses challenges to profitability, especially with crude prices dipping in the third quarter [8] Group 3: Costco Wholesale Corp. (COST) - Costco's shares have outperformed the Zacks Retail - Discount Stores industry over the past year, with a growth of 43.3% compared to 23.6% in the industry [9] - The company is expected to register an 11.5% adjusted earnings per share improvement in fiscal 2025, driven by 6.6% revenue growth [10] - Key strengths include strategic investments, a customer-centric approach, and a focus on membership growth [9][10] - Costco's favorable product mix and strong liquidity position are expected to help it continue outperforming [11] Group 4: Flanigan's Enterprises, Inc. (BDL) - Flanigan's shares have underperformed the Zacks Retail - Restaurants industry over the past year, with a decline of 3.1% compared to a growth of 6.3% in the industry [12] - The company faced a 16.1% net income decline and inflation-driven margin pressure [12] - Despite challenges, Flanigan's achieved 7.9% revenue growth to $188.3 million in fiscal 2024, driven by a rise in restaurant and package store sales [13] - Geographic expansion opportunities and operational efficiencies position the company for long-term growth [14]

Labor Dispute and Union Actions - Over 18,000 Costco employees, represented by the Teamsters, have voted to strike on January 31 due to unresolved labor disputes [1] - The Teamsters and Costco have been in negotiations since mid-December, but 85% of union members voted for a strike after the company rejected proposals for increased seniority pay, paid family leave, bereavement policies, sick time, and safeguards against surveillance [2] - The strike will impact approximately 50 of Costco's 624 U.S. stores, primarily in California, New York, New Jersey, Virginia, and Washington [3] - The Teamsters allege that Costco has expelled union representatives from stores, harassed workers for wearing union buttons, and blocked union updates on in-store bulletin boards during negotiations [4] Financial Performance and Union Demands - Since the Teamsters' current contract in 2022, Costco's revenues have increased by 12%, from $222.7 billion to $249.6 billion, and profits have grown by 26%, reaching $7.4 billion from $5.8 billion [5] - The Teamsters argue that Costco should recognize the contributions of its union members to the company's financial success rather than prioritizing Wall Street shareholders [5] Employee Sentiment and Corporate Culture - Christopher Reed, a Costco employee and Teamster member, expressed dissatisfaction with the company's corporate culture, stating that management has become disconnected and dismissive, prioritizing shareholders over workers [6] - Costco's former CEO Craig Jelinek and current CEO Ron Vachris acknowledged a failure in leadership after workers in Norfolk, VA voted to join the Teamsters, stating they were "disappointed in ourselves as managers and leaders" [9] Compensation and Reputation - Costco is known for its industry-leading pay and benefits, with an average hourly pay rate of about $31 last year, translating to approximately $64,000 annually for full-time employees [8] - Entry-level jobs at Costco start at $19.50 per hour [8] Shareholder Proposal on DEI Policies - Costco faces a shareholder proxy vote regarding its diversity, equity, and inclusion (DEI) policies, with the board unanimously rejecting the proposal and urging shareholders to do the same [7] - The board stated that its DEI efforts help attract and retain employees who contribute to the company's success [8]

Company Overview - Costco is recognized for its exceptional return on assets (ROA) and return on equity (ROE), outperforming other discount stores and grocery chains as of January 2025 [5] - The company's earnings are primarily driven by its membership program, which generates significant revenue despite a slim profit margin on goods sold [6][10] Business Model - Unlike many discount retailers, Costco prioritizes employee welfare by offering living wages and comprehensive health benefits, leading to higher employee satisfaction and better customer service [7][9] - The Kirkland store brand is noted for its quality, often matching or exceeding leading brands, which contributes to customer loyalty [8] Financial Performance - In fiscal year 2024, Costco reported a net income of $7.4 billion, with $4.8 billion coming from membership fees, representing approximately 65% of total earnings [10] - The stock has experienced a compound average growth rate (CAGR) of 27% over the last five years, surpassing competitors like Walmart and Amazon [11][12] Investment Considerations - While Costco is a strong candidate for a long-term investment portfolio, current stock valuations may be high, requiring investors to be comfortable with premium pricing [12][13] - The timing for purchasing Costco shares may not be optimal at present, suggesting that investors consider other opportunities for wealth accumulation [14]

Core Viewpoint - The article discusses the investment position of Parkev Tatevosian, CFA, and mentions the involvement of The Motley Fool with Costco Wholesale, highlighting potential conflicts of interest in investment recommendations [1] Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has positions in and recommends Costco Wholesale [1] - Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services [1]

Costco could face a strike when an agreement covering 18,000 of its workers expires on Jan. 31.Costco Teamsters voted to authorize a strike by an 85% margin, the union said in a Monday (Jan. 20) press release.“Our members have spoken loud and clear — Costco must deliver a fair contract, or they’ll be held accountable,” Teamsters General President Sean M. O’Brien said in the release. “From day one, we’ve told Costco that our members won’t work a day past Jan. 31 without a historic, industry-leading agreement ...

Teamsters said on Sunday its members at US retailer Costco Wholesale voted in favor of a nationwide strike, as they entered a final round of talks to reach a new contract ahead of a Jan. 31 deadline.The union, which represents more than 18,000 workers at Costco, said 85% of its members voted to authorize a strike.Teamster members at Costco Wholesale have vote in favor of a nationwide strike. Mike Lang / USA TODAY NETWORK via Imagn Images“The vote is a direct result of the company’s continued failure to barg ...

Workers announce customers about power outages as they were closed outside of Costco Wholesale in Foster City, California, United States on Jan. 16, 2025.A union representing thousands of Costco employees voted to authorize a strike, paving the way for a work stoppage if the labor group and retailer do not reach an agreement.Costco Teamsters, the union with 18,000 employees for the retailer nationwide, said 85% of members voted to approve the action. The current contract between the Teamsters and the wholes ...

Key TakeawaysCostco Wholesale employees represented by the International Brotherhood of Teamsters union voted overwhelmingly to authorize a nationwide strike should they not reach a new labor agreement by the end of the month.The Teamsters represent more than 18,000 Costco employees nationwide.Costco reported profit for its 2024 fiscal year ended Sept. 1 of $7.4 billion, up 17% year-over-year, on revenue of more than $254 billion. The more than 18,000 Costco Wholesale (COST) employees represented by the Int ...

Eighteen thousand Costco Teamsters are preparing to strike if a "fair contract offer" is not presented by the end of the month. Eighty-five percent of Costco Teamsters across the U.S. voted in favor of authorizing the strike, according to a Sunday press release. Tensions had been building throughout the week, as Teamsters put up several Costco-related posts on its social media."From day one, we’ve told Costco that our members won’t work a day past January 31 without a historic, industry-leading agreement," ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...