Most Canadians know Costco (NASDAQ: COST) as the place where a weekend trip turns into a $300 cart of rotisserie chicken, bulk toilet paper, and a couch you didn’t plan on buying. Fewer think of it as one of the more compelling stocks on the continent.
Costco just posted results showing its business model works just as well north of the border as it does everywhere else, and the company’s executives point to Canada as one of its strongest growth markets for years to come.
Here’s why Costco stock deserves a serious look from Canadian investors, not just a spot on the weekend errand list.
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The bull case for Costco stock
Costco’s appeal has never really been about being the cheapest store in town. It is more about trust and customer retention.
Members pay an annual fee for the privilege of shopping there, and in return they expect rock-bottom prices on everything from gas to gold jewelry.
The arrangement works because Costco keeps its promise. The company would rather cut its own margin than raise prices for members, and the discipline shows up in the numbers.
In its fiscal third quarter, which ended May 10, Costco increased revenue by 11.6% year over year to US$69.15 billion, while comparable sales rose 9.8%.
Membership fee income, the clearest signal of customer loyalty, grew 10.7% to US$1.4 billion. Executive Memberships, the premium tier that rewards Costco’s biggest spenders, hit 41.2 million, up 9.6% year over year.
Worldwide renewal rates sat at 89.7%, essentially unchanged and still remarkably high for any retailer.
Costco runs a successful subscription business that allows it to trade at a premium multiple. The blue-chip stock trades at a forward price-to-earnings multiple of 41 times in September 2026, above the 10-year average of 34.6 times.
Strong Canadian growth
In August, Costco’s Canadian comparable sales grew 4%, or 2.8% after stripping out gas price swings and currency effects. Revenue rose even as a weaker Canadian dollar shaved roughly 0.8 percentage points off reported results, meaning the underlying business performed better than the headline number suggests.
Costco’s leadership team is not shy about where they see opportunity next. On the company’s third quarter earnings call, Chief Operating Officer Ron Vachris was asked directly about capacity and expansion plans in Canada, and he answered:
“In Canada, yes, we have a lot of upside potential,” Vachris said. “We’ve got some clubs. We’ve got the next three to five years charted out. And so we see consistent strong growth in Canada for at least the next five years, and then we’ll have to come back and evaluate where we’re going.”
Costco has mapped out its next several years of Canadian warehouse growth in a market where high average unit volumes suggest members keep showing up and spending.
What this means for your portfolio
None of this means Costco stock is without risk.
Gas price swings can distort comparable sales in either direction, and a chunk of the company’s recent growth has leaned on higher fuel prices rather than retail strength. Tariff-related costs and currency fluctuations remain notable headwinds for a company with global operations.
But strip away the noise, and the core story holds up. Costco pairs a loyal membership base with disciplined pricing and a growth runway in Canada, one of its healthiest markets outside the United States.
The combination of steady cash flow, membership economics, and expansion potential is the kind of setup long-term investors look for. Canadians already trust Costco with their grocery budgets.
For those willing to do a bit more homework, it might be worth trusting the company with a slice of their portfolio too.
