Ex-CFO Remarks Resurface as U.S. Beef Prices Hit Records

A clip of remarks by former Costco CFO Richard Galanti from a May 2023 earnings call has resurfaced online as U.S. beef prices reached record levels, prompting debate about the outlook for consumer spending. Costco has reported that member purchases remained relatively steady in its fiscal first and second quarter 2026 reports.

On the May 2023 third-quarter earnings call, Galanti noted that management had observed some shoppers shifting away from higher-priced beef toward lower-cost proteins, including canned chicken and tuna. He linked the pattern to consumer behavior seen during economic slowdowns in 1999, 2000 and 2008 through 2010.

Galanti left the CFO role in March 2024 after about four decades with the company. Gary Millerchip took over as CFO and recent earnings calls under his tenure have not issued a similar warning about a broad trade-down in protein purchases.

Sales data cited by Costco for early 2026 show growth in higher-priced meat cuts outpacing growth in cheaper proteins, a trend that runs counter to the trade-down narrative circulating online. Company executives described member spending as relatively consistent across the company’s fiscal Q1 and Q2 2026.

Beef prices in the United States have climbed to record highs. Ground beef averaged about $6.70 per pound in March 2026, and live cattle traded near $2.58 per pound that month. The U.S. cattle herd has fallen to its smallest size in 75 years following prolonged drought and higher feed costs. An executive order that would have eased limits on beef imports to lower prices was delayed by President Donald Trump earlier in May 2026.

Other economic indicators cited in recent discussion include a drop in U.S. cardboard box production of more than 8% in the first quarter of 2026 and a March assessment from Goldman Sachs that raised its 12-month probability of a U.S. recession to 30%, citing oil shocks and tighter financial conditions. Market-based pricing on a prediction market implied roughly a 23% chance of a U.S. recession by year-end 2026.

Costco’s current management has not repeated Galanti’s 2023 comments in recent earnings calls. The resurfaced 2023 clip has been shared widely against the backdrop of higher food costs and tighter supply for cattle, contributing to renewed public discussion about consumer behavior and economic risks.