3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry.
This week was a busy one for c-store earnings, with several publicly traded companies reporting their latest quarterly results. In a two-day span, Arko, CrossAmerica Partners, Par Pacific Holdings, Parkland and Global Partners all posted their latest financials.
What did we learn? While none of the companies reported major impacts from tariffs, a downturn in consumer spending or other macroeconomic headwinds, most of them are carrying out a major strategic initiative that showed up on their balance sheet.
Arko is in the process of “dealerizing” its stores, while CrossAmerica Partners is offloading non-core sites, and Parkland is readying for a takeover by oil company Sunoco.
Here’s a look at some of the key numbers from this latest earnings blitz.
60
The number of stores CrossAmerica sold during Q2
CrossAmerica Partners is one of the fastest-growing c-store retailers in the U.S. right now, but it is also trying to rightsize its portfolio of stores to maximize profits. During this year’s second quarter, the company sold off 60 stores that were not performing well or were located in non-core markets, such as Colorado and Kansas.
The Q2 selloff brought in around $64 million, netting just under $30 million. The 60 stores sold last quarter was double the number CrossAmerica divested in all of fiscal 2024, indicating the company is more committed than ever to operating only high-value sites.
In addition, CrossAmerica is converting many of its stores from dealer sites to company-operated locations, giving it more control and uniformity over its footprint. Fifteen of the 60 sites sold in Q2 were company-owned stores.
$1.99 billion
Arko’s Q2 total revenue, which marked its fifth consecutive drop in the metric
While CrossAmerica is converting dealer sites to company-owned ones, Arko is in the midst of doing the opposite with hundreds of its stores.
Since launching its “dealerization” program last year, Arko has converted close to 300 sites from company-owned to dealer sites. Chairman, President and CEO Arie Kotler says he is “very pleased” with progress so far — but the program is proving to be a drag on revenue, and analysts and investors are wondering when they will start to see benefits flow through.
“Is the pace of dealerizations going in line with the original plan?” one analyst asked during Arko’s Q2 earnings call Wednesday, reflecting concerns that the strategy is taking longer than expected.
Kotler said Arko is on pace to convert 500 stores and that the program will continue into next year. “This is unheard of,” he said about the goal. Kotler noted that the strategy is a “long-term play” aimed at saving $20 million. But with the company’s stock down nearly 30% so far this year, the pressure to show results is rising
45%
Year-over-year decline in adjusted Q2 EBITDA for Parkland
Canada-based Parkland has struggled in the U.S. for years, and it seemed unlikely that one of the company’s last earnings reports before completing its sale to Sunoco would show positive momentum.
Predictably, Parkland’s U.S. business in Q2 showed considerable weakness as the company struggled with what it called “macroeconomic pressures continuing to impact fuel and convenience demand.” Or, to put it another way: Consumer price sensitivity is denting business.
Specifically, Parkland’s U.S. adjusted EBITDA dropped $21 million in Q2, marking the third consecutive quarterly decline in the key metric. In contrast, adjusted EBITDA in its Canadian business grew by $22 million.
The big question at this point: What will happen to Parkland’s U.S. c-stores once the deal materializes? The company owns around 660 locations and directly runs a little less than a third of them. Sunoco President and CEO Joseph Kim has stayed mum about that company’s plans, but no doubt c-store competitors are eager to hear more when Sunoco is ready to share.
