Costco‘s $4.99 rotisserie chicken has been a polarizing product based on its taste, not its price.

You can’t argue the success of the product, as “the deli department mainstay has garnered a cult-like following, with Costco selling more than 100 million rotisserie chickens annually since 2020, according to Eat This, Not That!.

Some, however, myself included, find the chicken’s taste less than appealing. That list includes celebrity chef David Chang.

“I think the Costco chicken is the worst rotisserie chicken,” he said on his podcast. “They’re not good. They’re not seasoned. The reason why it’s important to have it properly seasoned is, you might eat it the next day cold, and it’s got to taste good cold.”

Taste, of course, is subjective, but what goes into the $4.99 chicken is not. The warehouse club now faces a lawsuit over what it may or may not put in its low-priced chicken.

Costco faces a class-action lawsuit

The label on every Costco chicken says the same thing: “No preservatives, MSG, gluten, artificial flavors, or colors.”

That claim is the subject of a potential class-action lawsuit.

“A proposed class action lawsuit has been filed in San Diego federal court against Costco, which accuses the retail giant of falsely advertising that its Kirkland Signature Seasoned Rotisserie Chicken contains no preservatives, court papers revealed Friday (Jan. 23),” NBC San Diego reported.

The complaint, filed on behalf of Anatasia Chernov and Bianca Johnston, alleges that Costco’s website and in-store signs state the chickens contain “no preservatives,” despite the presence of additives sodium phosphate and carrageenan.

The lawsuit’s claims include:

  • Neither plaintiff would have purchased the chicken or would have paid less if they had known the additives were present.
  • It also states that Costco has “systemically cheated customers out of tens — if not hundreds — of millions of dollars” through the alleged false advertising.

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“Consumers reasonably rely on clear, prominent claims like ‘No Preservatives,’ especially when deciding what they and their families will eat. Costco’s own ingredient list contradicts its marketing. That’s unlawful, and it’s unfair,” plaintiffs’ attorney Wesley M. Griffith said in a statement.

Costco has not issued a statement on the lawsuit and has not publicly commented on whether its $4.99 chickens contain preservatives.

The FDA has a clear definition of “chemical preservatives” on its website.

The term “chemical preservative,” the agency says, “means any chemical that, when added to food tends to prevent or retard deterioration thereof, but does not include common salt, sugars, vinegars, spices or oils extracted from spices, substances added to food by direct exposure thereof to wood smoke, or chemicals applied for their insecticidal or herbicidal properties.”

The claims remain allegations only, and no court has yet ruled on whether Costco’s labeling violates federal or state law.

Costco has held the $4.99 price point on its rotisserie chicken.

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$4.99 chicken has been a key Costco item

Costco has picked a handful of signature items, including its $4.99 chicken and $1.50 hot dog combo, where it has decided to never raise prices. The chain has been adamant about keeping that price point for its chicken and even bought a chicken farm and processing facility to minimize its losses from selling at $4.99.

Costco CFO Gary Millerchip believes that holding prices on some items sends an important message to members.

“While our members love the treasure hunt items that they find in our warehouses and online, our everyday value items are also extremely important to them, especially in times of economic uncertainty,” he said during the chain’s fourth-quarter earnings call.

The $4.99 rotisserie chicken, a product that’s a loss leader for the chain, is a big part of that.

“There are no better examples of this than our hotdog combo, rotisserie chicken and KS bath tissue. And in fiscal year 2025, we sold over 245 million hotdog combos, over 157 million rotisserie chickens, and enough bath tissue to reach the moon and back over 200 times,” he added.

Related: History of Costco: Company timeline and facts

Costco faces a second chicken issue

In addition to the potential class action lawsuit, Costco also faces concerns that its cheap chickens appear to be putting Costco members at risk of salmonella poisoning, according to a report shared by Sentient Media.

“The report, by advocacy group Farm Forward, is based on an analysis of USDA Food Safety and Inspection Service inspection data from 2020-2024 and focuses on Costco’s Lincoln Premium Poultry chicken slaughter and processing plant in Fremont, Nebraska. The plant slaughters over 100 million chickens annually for its rotisserie chicken and Kirkland Signature raw chicken brand, and reportedly supplies about 40% of Costco’s chicken,” the news website shared.

The data showed some concerning things about Costco’s chicken.

  • Since Costco’s Fremont plant opened in 2019, it has consistently failed the USDA’s monthly rolling tests for salmonella, receiving the worst Category 3 rating 92% of the time, the report says.
  • Over a more recent period, from September 2023 through July 2025, the Fremont plant received a Category 3 rating 100% of the time, the director of Farm Forward, Andrew deCoriolis, tells Sentient, suggesting that contamination rates are getting worse.
  • Consumer Reports also includes the Costco plant among its most contaminated poultry plants in the U.S. based on data collected through July 26, 2025.

The FDA does not have the authority to close the plant.

“The agency does not have the authority to stop the plant’s operation, stop raw meat from reaching store shelves, or recall raw meat products. The contaminated chicken can still be sold in grocery stores across the country,” Sentient reported.

Costco did not return a request for comment on the FDA story filed through its media request form.

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