Costco Wholesale has exceeded revenue expectations for the third quarter due to a steady stream of customers flocking to the warehouse chain for both essential groceries and discretionary items.

Following the release of its quarterly earnings report, shares of Costco reached an all-time high on Thursday but experienced a decline in after-hours trading.

Despite this, the Washington-based company managed to surpass Wall Street’s predictions. In the third quarter, Costco generated $58.52 billion in revenue, equivalent to earnings per share of $3.78. Analysts from FactSet had estimated revenue of $58.07 billion, with earnings per share around $3.70.

As inflation remains a concern for consumers, along with rising prices in the fast food industry and falling grocery prices, Costco is in a favorable position. The membership-only retailer has witnessed strong demand for its grocery and bakery categories, which offer lower prices and new product options such as honey buns and lemon blueberry loaf bread.
According to the company, their best-selling product categories consisted of appliances like toys, lawn and garden items, as well as gold and silver.