Business

Costco offers affordable prepared meal option as shoppers look to save money

If you've been watching your credit card bills lately, you're probably painfully aware that prices are up just about everywhere. Whether it's filling up a car or paying for utilities, consumers just can't catch a break.

In March, the Consumer Price Index rose 3.3% on an annual basis. And while much of that increase was driven by increasing fuel costs, food prices were up 2.7% year-over-year last month.

As such, consumers are increasingly rethinking restaurant spending and turning to grocery stores for better value.

What was once a convenience-driven decision - grabbing takeout - has become a financial calculation. And even though eating at restaurants can be a fun social experience, many people are cutting back due to cost.

In fact, 37% of Americans say they're eating out less often than a year ago, according to a YouGov survey.

That doesn't mean consumers don't want quality meals, though. They just want to pay less for them. And Costco just took a big step to solve that problem.

Costco elevates dinner staple in response to growing trend

Costco is leaning into the shift away from restaurant meals by expanding its lineup of prepared meals. And its latest offering, Kirkland Signature Braised Beef With Yukon Mashed Potatoes, is nothing short of restaurant quality.

The dish features slow-cooked braised beef in a rich sauce paired with buttery mashed potatoes, designed to deliver a comfort-food experience with minimal effort. Sold by weight at roughly $7.89 per pound, a typical package costs around $24 to $28 and can feed multiple people, according to Chowhound.

Related: Sam's Club just gave members a reason to ditch Costco

Given that a typical restaurant entree for one person might cost $24 to $28 these days - even before tip - Costco's latest offering is a clear bargain.

The only catch is that the dish requires an hour in the oven to heat up, so you'll need to plan ahead. But so far, the reviews have been positive.

"Just tried this a couple days ago, very tender and tasty," one Reddit user said. "Got three servings from it. Probably my new favorite Costco pre-made meal."

Another said, "Got about 5 portions out of it for around $26."

A smart and timely play for Costco

Costco's latest take-home entree couldn't have come at a better time. Consumers not only are spending more cautiously these days, but also are growing increasingly frustrated over having to skimp on splurges to conserve funds.

Costco's latest entree isn't just a consolation prize. It's a tasty meal with solid flavors and ingredients that mimic the restaurant experience without the hefty bill.

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Of course, meeting members' needs is exactly where Costco excels.

The company has long built its brand on offering bulk value and premium-quality private-label products. Prepared meals like the braised beef entrée extend that reputation into the dinner category, giving shoppers an easy way to stretch their food budgets without sacrificing taste.

But the strength of the Kirkland Signature brand also makes members feel comfortable buying moderately priced entrees such as the Braised Beef With Yukon Mashed Potatoes.

Kirkland has a solid reputation for quality. And that reputation is a big driver of Costco's success.

"Costco has a keen focus on a strong value proposition of quality and price," retail expert Gary Sankary told RetailWire. "They play the 'long game' in their private label strategy... their customers have developed a strong affinity for the brand and are much more likely to try new Kirkland products around the store, because their experiences with the products they do know has been consistently good."

As consumers continue to shift away from restaurants, it won't be surprising to see Costco increase its entree selection, enabling members to spend less and still eat well.

Maurie Backman owns shares of Costco.

Related: Costco's Kirkland clothing solves a common problem

The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

This story was originally published April 28, 2026 at 1:17 PM.

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