New York, January 28, 2026, 19:45 EST — After-hours
- Costco shares dipped roughly 1% during Wednesday’s trading and remained nearly flat after hours.
- A proposed class action takes aim at Costco’s “no preservatives” claims on its rotisserie chicken. Costco says it has since removed that language from its signage and website.
- Investors are focused on the stock’s ex-dividend date this Thursday, along with Costco’s upcoming sales and earnings reports set for early February and March.
Shares of Costco Wholesale Corp (COST.O) dipped Wednesday and barely moved in after-hours trading, following news of a proposed class-action lawsuit over its rotisserie chicken. The stock last traded at $960.78.
The case targets a product central to Costco’s identity — affordable, straightforward, reliable — which is crucial for a stock valued for steady performance. Investors see Costco as a defensive retail play, so any headlines questioning its marketing claims can unsettle sentiment, even when the financial fallout remains uncertain.
Short-term flows face tricky timing. Costco goes ex-dividend later this week, so anyone buying after won’t get the next cash payout. On top of that, the company has sales and earnings events lined up in the coming weeks.
Costco shares slipped 0.98%, closing at $960.78 in regular trading, while the S&P 500 barely moved. Other retail giants also faced declines: Target dropped 2.27%, Walmart edged down 0.32%, and Amazon.com fell 0.68%.
Two California shoppers sued Costco, arguing that its in-store signs and website gave the overall impression that Kirkland Signature Seasoned Rotisserie Chicken had no preservatives. But the ingredient list shows sodium phosphate and carrageenan. Costco told The Independent it’s removed preservative claims from signage and online listings to keep labeling consistent. The company added these additives help retain moisture and texture—and are approved by food safety regulators.
The lawsuit—Johnston et al v. Costco Wholesale Corporation—was lodged on Jan. 22 in the U.S. District Court for the Southern District of California, according to court records.
Wesley Griffith, California managing partner at the Almeida Law Group for the plaintiffs, argued that consumers “reasonably rely on clear, prominent claims like ‘No Preservatives,’” labeling the supposed gap between marketing and actual ingredients unlawful. FOX 13 Seattle
At this stage, it’s more headline risk than a numbers game. These cases tend to drag on, and initial filings rarely reveal much about potential settlements or court rulings.
A separate regulatory filing revealed that Costco director Jeffrey S. Raikes donated 5,115 shares on Jan. 27 to a non-profit foundation.
The bigger risk for the stock isn’t just a single lawsuit—it’s the timing. A legal overhang, a dividend-driven price tweak, and any weak patch in the upcoming sales report could add pressure on a stock that’s already been expensive.
Costco will go ex-dividend on Jan. 29, marking a record date the next day, Jan. 30, ahead of the $1.30 quarterly dividend payment on Feb. 13. The retailer’s January sales report is due Feb. 4 at 1:15 p.m. PT, with its fiscal second-quarter earnings call scheduled for March 5 at 2:00 p.m. PT.
