Sam's Club just lowered the price on its hot dog and soda combo and undercut Costco

• Sam's Club just reduced the price of its hot dog and soda combo to $1.38.
• The deal is now cheaper than Costco's version of the combo.
• Sam's Club recently raised membership prices, but still remains less expensive than Costco.

Sam's Club is lowering the price of its hot dog and soda combination from $1.50 to $1.38, Walmart CEO Doug McMillon told investors in a third-quarter earnings call.

Sam's Club's hot dog is famously in competition with Costco's version of the deal, still priced at $1.50. Neither grocery chain raised the price despite historic inflation over the past year, and Costco CEO Craig Jelinek repeatedly confirmed that there were no plans to raise the price.

Now the Walmart-owned chain has one-upped Costco by cutting the price by about 10%. The latest change to Costco's menu was a price hike on soda and chicken bakes in July. The chicken bake increased by $1, and the soda cost increased by 10 cents, although it did not impact the price of the hot dog and soda combo.

Sam's Club is priced lower than Costco in other areas, too. Despite a recent membership price increase, Sam's Club is still the less expensive of the two, with fees at $50 and $110 for different tiers compared to $60 and $120 at Costco.

Walmart CEO Doug McMillon said the price decrease is part of an effort aimed at "making the everyday shopping trip better." Other parts of the plan include keeping prices on Thanksgiving staples the same as last year and slashing pricier items like rack of lamb and lobster tails.

The updated hot dog and soda price is already displayed online on Sam's Club's website.

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