Costco Says In-House Pastry Sales More Than Doubled Last Quarter
Costco’s bakery is on a roll. The warehouse giant revealed that in-house pastry sales jumped more than 100% in its fiscal fourth quarter, which ended August 30, 2026. Chief Financial Officer Gary Millerchip shared the figure during the company’s September 24 earnings call, highlighting the growing popularity of Costco’s bakery offerings.
And pastries aren’t the only bright spot. Costco reported an 11.2% increase in quarterly net sales to $93.9 billion, while comparable fresh-food sales climbed in the mid-single digits, driven by strong bakery and meat performance. For American shoppers who already make Costco a regular grocery stop, the numbers offer an interesting look at how the retailer is competing for more of their food spending.
Costco’s Bakery Is Becoming a Bigger Part of Its Business
In-house pastries are the standout. Millerchip told investors that pastry sales increased by more than 100% during the quarter. That figure applies only to in-house pastries, not Costco’s entire bakery department. The company did not disclose the total dollar value of those pastry sales or identify which individual products contributed most to the increase.
New bakery selections are helping. Costco credits part of its success to introducing appealing baked goods at prices it believes offer good value. During the earnings call, Millerchip described the strategy as offering “new and indulgent items at great value for our members.” The comment suggests that keeping the bakery selection interesting remains an important part of Costco’s approach.
The momentum extends beyond desserts. Costco’s fresh-food comparable sales increased in the mid-single digits, with bakery and meat leading the category. In the United States, adjusted comparable sales rose 7.2%, excluding changes in gasoline prices and currency exchange rates. Those figures show that pastry growth occurred alongside wider sales gains across the business.
Why This Matters to Shoppers at Local Costco Warehouses
A nationwide retailer with a local presence. Costco reported operating 939 warehouses worldwide, including 647 in the United States and Puerto Rico, as of its September earnings announcement. That gives the bakery business a substantial national presence. However, the company did not provide warehouse-by-warehouse pastry sales figures, so the nationwide increase cannot be used to establish how much sales grew at any particular location.
Bakery products provide another reason to visit. Nataly Kelly, chief marketing officer at consumer research company Zappi, told Inc. that Costco’s fresh bakery helps distinguish the retailer from online sellers and discount competitors. She also suggested that shoppers seeking an affordable indulgence may choose Costco over a specialty dessert shop. This perspective highlights why the bakery could matter beyond the pastries themselves.
Membership costs also factor in. Costco currently lists its standard Gold Star membership at $65 annually and its Executive membership at $130, plus applicable taxes. For existing members, comparing bakery prices with nearby grocery stores is straightforward. However, anyone considering joining mainly for bakery purchases should factor in the annual membership fee before deciding whether the overall value makes sense.
Related: 8 Costco and Walmart Shopping Mistakes That Quietly Drain Your Wallet
New Pastries and Social Media Are Drawing Attention
Social media is amplifying interest. Vivien Garnès, co-founder and co-CEO of influencer marketing company Upfluence, told Inc. that Costco benefits from enthusiastic shoppers who independently post about its products. Videos featuring bakery discoveries can introduce desserts to consumers who haven’t encountered them in stores. Still, Costco has not publicly established how much of its reported pastry sales growth came directly from social media exposure.
A new lemon croissant has entered the conversation. On October 7, Allrecipes reported the arrival of Kirkland Signature Lemon Cream Caramelized Croissants, priced at $12.99 for a six-pack. Southern Living also reported sightings, including at a Costco in Lee’s Summit, Missouri, and described a gradual rollout across different states. The new croissants illustrate Costco’s ongoing experimentation with bakery selections, though their October arrival means they couldn’t have contributed to the quarter that ended August 30.
Not every bakery discovery is available everywhere. National food publications regularly feature Costco items after shoppers discover them at individual locations. The reports about the lemon croissants specifically advise customers to check with their nearby warehouse. For anyone planning a shopping trip around a particular dessert, confirming local availability is more useful than assuming a national social media post reflects every store’s inventory.
Costco Is Also Making Price Changes Elsewhere
Selected Kirkland Signature products received reductions. During the same earnings call, Costco disclosed several price cuts, including Kirkland Signature walnuts dropping from $13.79 to $9.99 and coarse black pepper falling from $6.99 to $5.99. Colombian whole bean coffee was also reduced from $21.99 to $19.99. These were specific examples from the quarter, not evidence of an across-the-board reduction in bakery prices.
Value remains central to the retailer’s strategy. Costco says its Kirkland Signature products generally aim to offer savings of at least 15% to 20% against comparable national brands. That’s a company-stated pricing objective, not a guarantee that every item beats every competitor. For shoppers, comparing actual shelf prices, package quantities, and comparable alternatives remains the practical approach.
What’s Next for Costco’s Bakery Fans?
A familiar food court item is returning. Costco also confirmed during its September earnings call that churros would return to U.S. food courts for a limited time, beginning that month. The announcement gives fans another reason to check the food selection on their next trip. However, food court churros are separate from the company’s reported in-house pastry sales and shouldn’t be counted as evidence of the bakery department’s growth.
More financial information is scheduled. Costco’s investor calendar lists December 10, 2026, for its first-quarter fiscal 2027 earnings call. That will offer another chance to assess the retailer’s overall business performance, though the company has not promised to release another separate pastry sales figure. Until then, the confirmed story is that in-house pastries were an unusually strong performer in Costco’s most recently reported quarter.
For shoppers, the takeaway is simple: Costco’s bakery is attracting attention, but the best deal is still the one that makes sense for your shopping list and budget.
