If you invested $1,000 in Costco 10 years ago, here's how much money you'd have now.

Although Costco's hot dog price remains unchanged, its stock has experienced significant growth.

Since 1985, the iconic hot dog and soda combo of the wholesale retailer has sold for $1.50, while the company's stock has grown by an astronomical 59,152%, according to CNBC calculations. In comparison, the S&P 500 has increased in value by about 6,000% in that time.

Due to its consistent growth, strong business model, and regular cash dividends, Costco has long been a favorite stock among investors.

Recently, there has been a surge in young people, including Gen Z, joining Costco due to its affordable prices, iconic food court, and exclusive Kirkland Signature products.

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Some analysts believe that Costco's high valuation, indicated by its price-to-earnings ratio of over 50, suggests that it may be overly popular with investors.

Over the years, the stock's performance has rewarded investors, and ahead of the company's release of its fourth quarter earnings after Thursday's market close, here's a look at the stock performance based on an initial investment of $1,000.

How much an investment in Costco is worth

As of Wednesday's market close, Costco's shares were trading at $908 per share, up about 38% so far in 2024.

• If you had invested $1,000 in Costco a year ago, your investment would have grown by approximately 66% and be worth $1,661 as of Sept. 25.
• If you had invested $1,000 in Costco five years ago, your investment would have grown 230% in value and be worth $3,295 as of Sept. 25.
• If you had invested $1,000 in Costco 10 years ago, it would have increased in value by more than 674% and be worth $7,738 as of Sept. 25.
• If you were fortunate enough to purchase $1,000 worth of Costco stock when the company went public in 1985, your investment would be worth $592,512 as of Sept. 25, according to CNBC's calculations.

When considering the purchase of Costco stock, it's important to remember that all investments involve risk and past performance does not assure future results.

Investing in index funds can be a simpler and lower-risk option for many investors, but it's crucial to assess your financial objectives and risk tolerance before making any investment decisions.

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