Core Insights - Costco is not just a retailer but a phenomenon with a strong following in North America due to its unique business model and low prices [1] Membership Model - The membership model is Costco's secret weapon, with customers paying $65 for a basic membership or $130 for an executive membership, generating over $5.3 billion in revenue for the fiscal year ending August 31, 2025 [3] - Membership revenue covers about one-fifth of overhead expenses, allowing Costco to sell products at lower gross margins [4] - Costco's renewal rates exceed 90%, creating a loyalty flywheel that is difficult for competitors to replicate [6][7] Growth Strategy - Despite operating 890 warehouses globally, Costco plans to increase this number to 914 by the end of fiscal 2025 and to 944 by fiscal 2026, representing a disciplined growth strategy focused on high-return locations [8] Financial Performance - In the last fiscal year, Costco generated $275 billion in revenue (+8% year-over-year) and $8.1 billion in net income (+10% year-over-year), with a return on invested capital of over 20% [9]