Group 1 - Costco Wholesale is recognized for its loyal membership base, steady traffic, and value-driven culture, making it a reliable performer in the retail sector [2] - The stock trades near all-time highs, reflecting a valuation premium over competitors, indicating strong investor confidence [2] - Despite its strengths, there are risks associated with the premium valuation, particularly concerning membership income and growth potential [3] Group 2 - Membership fees are crucial for Costco, generating $5.3 billion in revenue in fiscal 2025, which constitutes a significant portion of net income [5] - Renewal rates are high at approximately 90% globally and 92% in the U.S. and Canada, but there are concerns about potential saturation in the U.S. market [5][6] - The company's growth strategy relies heavily on international expansion, which presents both opportunities and risks [6][8] Group 3 - International growth is seen as the primary growth driver, with 914 warehouses globally, including locations in China and Europe [9] - Expanding internationally poses execution risks, as consumer preferences and competitive landscapes differ significantly across markets [10] - Successful adaptation of Costco's business model to various international markets is essential for sustained growth [10]