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Costco's Sales Rebound in September Looks Great on Paper. Why There's More to the Story. -- Barrons.com

Costco's Sales Rebound in September Looks Great on Paper. Why There's More to the Story. -- Barrons.com

By Mariapaula Gonzalez After a slowdown in same-store sales this summer, Costco Wholesale bounced back stronger in September. There is, however, more to the story. Comparable sales in the U.S., excluding impacts from gasoline prices and foreign exchange, rose 8% in September, up from 5% a year ago. The numbers in September mark a solid rebound from a summer slowdown. Same-store sales rose 7.6% in August, 6.9% in July, and 6.3% in June. Not since May, when Costco posted a 8.7% increase in sales, has growth been at this level. In July and August, comparable sales in the U.S. grew by 0.4% and 0.2%, respectively, from a year ago. A calendar shift in 2026 provided an extra tailwind. Labor Day fell one week later this year, which boosted sales in September by 50 basis points, Costco said. Management had previously said that a later Labor Day contributed to a slight weakness in sales in August. E-commerce sales grew 19% from the year ago, pointing to steady gains in online ordering and delivery. Higher foot traffic also contributed to strong sales in September. Stores in the U.S. saw shopper visits increase by nearly 4% in September, up from about 3% in August. While growth picked up in September, that figure has a bit of nuance. Mizuho analyst David Bellinger wrote Thursday that some of the lift came from one-off factors -- DoorDash and Uber Eats gift card sales -- and lower-margin categories such as the food court and pharmacy, which aren't as profitable as core retail merchandise. The firm has an Outperform rating and $1,065 price target on Costco stock. Costco stock rose 0.3% to $945.39 Thursday. Shares have risen nearly 10% this year, but the stock has pulled back almost 14% from its 52-week closing high of $1,094.32 on May 19, according to Dow Jones Market Data. Shares of rivals Walmart and Target rose 1.3% and 1.1%, respectively. Meanwhile, Amazon fell 0.5% Thursday. The strong performance in September signals that Costco's operations remain healthy, with performance meeting expectations. Investors will likely co

Dow Jones•2026-10-08 14:13
Uber to Buy ezCater For $2.3 Billion to Expand Corporate Food Delivery Business

Uber to Buy ezCater For $2.3 Billion to Expand Corporate Food Delivery Business

11:43 AM EDT, 10/06/2026 (MT Newswires) -- Uber Technologies (UBER) agreed to acquire US-based catering platform ezCater in a $2.3 billion cash deal, as the ride-hailing giant looks to expand its food delivery business to more corporate customers. EzCater, a food technology platform for workplaces, connects businesses with more than 140,000 restaurants to manage their food requirements, including for meetings and events. The transaction is expected to combine ezCater's catering expertise with Uber Eats' consumer and restaurant reach and Uber for Business' corporate relationships. "Catering is a big business, and can be a huge revenue stream for restaurants," Uber Chief Executive Dara Khosrowshahi said in a joint Tuesday statement. "With Uber's reach, we can bring that experience to millions more customers and help restaurants win more of these valuable orders." Uber expects the acquisition to create more high-value catering orders for restaurants. The deal, which requires regulatory approval, is expected to close in the coming months. Uber's shares edged down 0.4% in Tuesday trading, with the stock having lost 15% so far this year. "We're energized to bring our catering and (business-to-business) expertise to Uber's global ecosystem of customers, merchants and couriers," ezCater CEO Nihad Rahman said. EzCater generated more than $2.5 billion in gross bookings over the past 12 months, up in the high teens from a year earlier. The business is expected to be margin accretive, according to the companies. Wedbush Securities said last month that Uber's cross-platform engagement remains an "underappreciated structural advantage," citing customers who use its ride hailing and food delivery services spending about three times more than single-product users. Uber announced plans in September to reduce its workforce by roughly 10% as part of an effort to simplify the organization and free up resources for growth. In July, Uber agreed to purchase Germany-based Delivery Hero in a deal representing an equity value of $14.8 bil

MT newswire•2026-10-06 15:43

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