Washington, D.C. – Costco’s iconic $4.99 rotisserie chicken, long seen as a cornerstone of the warehouse club’s value strategy, is facing renewed scrutiny after reports raised concerns about potential salmonella contamination linked to one of its major poultry suppliers. The findings are drawing attention to how far the retailer has gone to keep the price unchanged—and what that may mean for food safety.
Costco’s Extreme Efforts to Keep the $4.99 Price
Costco has treated its rotisserie chicken as a classic loss leader, selling the product at a loss to drive foot traffic and boost overall sales. According to reporting by CNN, the company has invested heavily to maintain that price, including recruiting farmers in Nebraska and opening a massive $450 million poultry complex in the state.
Food industry analysts note that the roughly three-pound chickens are priced well below production cost, but their popularity makes them a reliable draw for members, who often buy additional items during their visits.
Report Flags Salmonella Risks at Nebraska Poultry Plant
Concerns escalated after a report highlighted by Sentient Media examined inspection data from the USDA Food Safety and Inspection Service between 2020 and 2024. The analysis focused on Costco’s Lincoln Premium Poultry slaughter and processing plant in Fremont, Nebraska, which reportedly supplies about 40% of Costco’s chicken and processes more than 100 million birds annually.
The report found that since opening in 2019, the plant has repeatedly failed USDA monthly rolling tests for salmonella, receiving the worst Category 3 rating 92% of the time. From September 2023 through July 2025, the plant reportedly received a Category 3 rating 100% of the time, suggesting contamination levels may be worsening.
Consumer Reports Also Flags the Facility
Consumer Reports has also listed the Fremont plant among the most contaminated poultry facilities in the U.S., based on data collected through July 26, 2025. While these ratings do not automatically trigger recalls, they highlight persistent food safety challenges at large-scale poultry operations.
Why USDA Ratings Don’t Stop Chicken Sales
Despite repeated failures, USDA authority is limited. As noted by Sentient Media, the agency cannot shut down the plant, block raw chicken from store shelves, or recall products solely based on contamination test results. As a result, chicken from facilities with poor ratings can still be sold nationwide.
Costco did not immediately respond to requests for comment submitted through its media inquiry channels.
How Shoppers Can Reduce Food Poisoning Risk
Consumer Reports recommends several precautions to lower the risk of salmonella exposure when handling poultry:
- Wash hands thoroughly before and after handling raw meat
- Use separate cutting boards for meat and other foods
- Cook poultry to an internal temperature of 165°F, using a thermometer
- Store raw meat separately in sealed bags or containers
- Thaw frozen poultry in the refrigerator, below 40°F
- Avoid rinsing raw chicken, which can spread bacteria
The Chicken’s Role in Costco’s Brand Strategy
Former CFO Richard Galanti has repeatedly described the $4.99 chicken as central to Costco’s brand promise. During a 2023 earnings call, he said maintaining the price—along with the famously cheap hot dog—helps drive customer loyalty and store traffic.
In earlier remarks cited by The Seattle Times, Galanti acknowledged the strategy costs the company $30–$40 million annually in lost margin, a tradeoff Costco has long been willing to make.
Just How Many Chickens Costco Sells
The scale of Costco’s rotisserie chicken business is enormous. According to Chowhound, the company sold about 137 million rotisserie chickens in 2023. Reporting by the LA Business Journal shows Costco has sold more than 100 million chickens annually since at least 2020, with prior years reaching 117 million in fiscal 2022 and 106 million in 2021.
As scrutiny grows around food safety practices, the findings raise questions about whether Costco’s aggressive cost controls can continue without greater oversight—or changes—at the production level.
