Core Insights - Murphy USA reported a revenue of $4.53 billion for the quarter ended March 2025, which is a decrease of 6.6% compared to the same period last year [1] - The earnings per share (EPS) for the quarter was $2.63, down from $3.12 in the previous year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $4.77 billion, resulting in a surprise of -5.05% [1] - The company experienced an EPS surprise of -32.04%, with the consensus EPS estimate being $3.87 [1] Financial Performance Metrics - Total fuel contribution was 25.4 cents per gallon, below the average estimate of 28.68 cents from three analysts [4] - Retail fuel volume for the chain was 1,131.2 million gallons, compared to the average estimate of 1,151.95 million gallons [4] - Retail fuel margin was reported at 23.7 cents per gallon, lower than the average estimate of 25.82 cents [4] - Operating revenues from petroleum product sales were $3.49 billion, which is an 8.5% year-over-year decline and below the average estimate of $3.67 billion [4] - Merchandise sales generated $999.40 million, slightly below the average estimate of $1.03 billion, representing a year-over-year change of -0.1% [4] - Other operating revenues were reported at $36.20 million, compared to the average estimate of $40.75 million, reflecting a year-over-year increase of 15.7% [4] Stock Performance - Murphy USA's shares have returned +8% over the past month, while the Zacks S&P 500 composite increased by +10.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Murphy USA reported quarterly earnings of $2.63 per share, missing the Zacks Consensus Estimate of $3.87 per share, representing a -32.04% earnings surprise [1] - The company posted revenues of $4.53 billion for the quarter, missing the Zacks Consensus Estimate by 5.05% and down from $4.84 billion a year ago [2] Group 1: Earnings Performance - The earnings for the previous year were $3.12 per share, indicating a decline in earnings year-over-year [1] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - The company has not been able to beat consensus revenue estimates over the last four quarters [2] - The current consensus EPS estimate for the coming quarter is $7.39 on $5.42 billion in revenues, and for the current fiscal year, it is $25.61 on $20.77 billion in revenues [7] Group 3: Market Performance - Murphy USA shares have added about 0.2% since the beginning of the year, while the S&P 500 has declined by -4.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 4: Industry Outlook - The Retail - Convenience Stores industry is currently in the top 39% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

[Key Highlights & Management Commentary](index=1&type=section&id=Key%20Highlights) Q1 2025 performance was solid despite timing headwinds, driven by fuel margin growth and merchandise share gains - CEO Andrew Clyde noted that despite a **2% comparison headwind** from the timing of Leap Day and Easter, the business performed admirably, with key strengths in share gains for nicotine and center-of-store categories[5](index=5&type=chunk) - The company repurchased **321.1 thousand common shares for $151.2 million** and paid a quarterly dividend of **$0.49 per share**, a 2.1% increase from the previous quarter[6](index=6&type=chunk) - Subsequent to quarter end, on April 7, 2025, the company **refinanced and upsized its revolving credit facility and Term Loan B** to extend maturities and increase liquidity[6](index=6&type=chunk)[13](index=13&type=chunk) Q1 2025 Key Financial and Operational Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $53.2 million | $66.0 million | -19.4% | | Diluted EPS | $2.63 | $3.12 | -15.7% | | Total Fuel Contribution | 25.4 cpg | 24.8 cpg | +0.6 cpg | | Total Retail Gallons | -1.9% | N/A | -1.9% YoY | | SSS Retail Gallons | -4.2% | N/A | -4.2% YoY | | Merchandise Contribution | $195.9 million | $191.6 million | +2.3% | [Consolidated Results](index=2&type=section&id=Consolidated%20Results) Net income and Adjusted EBITDA declined year-over-year due to rising operating expenses that offset revenue gains - The decrease in net income was a result of **higher store operating expenses, depreciation, and interest expense**, which outweighed the positive impact of higher fuel and merchandise contributions and lower G&A expenses[7](index=7&type=chunk) Consolidated Financial Summary (Q1 2025 vs Q1 2024) | Metric ($ Millions, except EPS) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $53.2 | $66.0 | | Earnings per share (diluted) | $2.63 | $3.12 | | Adjusted EBITDA | $157.4 | $164.3 | [Segment Performance](index=2&type=section&id=Segment%20Performance) The company saw mixed segment results with higher merchandise contribution and stable fuel contribution despite volume declines [Fuel](index=2&type=section&id=Fuel) Higher retail fuel margins drove a 7.1% increase in retail contribution, offsetting lower volumes and weaker wholesale results - Retail fuel contribution dollars **increased by $17.7 million (+7.1%)** compared to Q1 2024, primarily due to higher retail fuel margins[8](index=8&type=chunk) - Product Supply & Wholesale (PS&W) contribution, including RINs, **decreased by $16.5 million** compared to Q1 2024, attributed to timing and pricing impacts from market conditions[8](index=8&type=chunk) Fuel Segment Key Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total fuel contribution ($ Millions) | $287.3 | $286.1 | | Retail fuel contribution ($ Millions) | $267.7 | $250.0 | | Retail fuel volume (Million gal) | 1,131.2 | 1,153.1 | | Retail fuel margin (cpg) | 23.7 | 21.7 | | Total fuel contribution (cpg) | 25.4 | 24.8 | [Merchandise](index=3&type=section&id=Merchandise) Merchandise contribution grew 2.3% to $195.9 million, driven by improved unit margins and growth in all categories - Total nicotine contribution dollars **increased 2.8%** and non-nicotine contribution dollars **increased 1.9%** compared to Q1 2024[9](index=9&type=chunk) Merchandise Segment Key Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total merchandise contribution ($ Millions) | $195.9 | $191.6 | | Total merchandise sales ($ Millions) | $999.4 | $1,000.7 | | Merchandise unit margin (%) | 19.6% | 19.2% | | Total merchandise contribution ($K SSS) | $38.4 | $37.8 | [Operating Expenses](index=3&type=section&id=Other%20Areas) Store operating expenses rose due to employee and maintenance costs, while SG&A expenses decreased on lower professional fees - Store OPEX, excluding payment fees and rent on an APSM basis, **rose 5.7%** versus Q1 2024, mainly due to increased employee expenses and maintenance costs[10](index=10&type=chunk) - The decrease in SG&A costs was primarily due to **lower professional fees and employee-related costs**[10](index=10&type=chunk) Expense Summary (Q1 2025 vs Q1 2024) | Expense Category ($ Millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total store and other operating expenses | $266.1 | $252.1 | | Total SG&A cost | $60.1 | $62.1 | [Store Portfolio Update](index=4&type=section&id=Store%20Openings) The company expanded its network with a net increase of 4 stores, reaching a total of 1,761 locations - At the end of Q1 2025, the company had a total of **1,761 stores**[11](index=11&type=chunk) - There were **31 total stores under construction** at the end of the quarter, comprising 14 new-to-industry sites and 17 raze-and-rebuilds[11](index=11&type=chunk) Q1 2025 Store Activity | Activity | Murphy USA / Express | QuickChek | Total | | :--- | :--- | :--- | :--- | | New-to-industry (NTI) | 8 | — | 8 | | Closed | (2) | (2) | (4) | | **Net change** | **6** | **(2)** | **4** | [Financial Position and Capital Allocation](index=4&type=section&id=Financial%20Resources) The company maintained a solid financial position while executing its capital allocation plan of share repurchases and dividends - In Q1 2025, the company repurchased **321.1 thousand shares for $151.2 million**, with approximately **$787.8 million remaining** under the current share repurchase authorization[14](index=14&type=chunk) - A quarterly dividend of **$0.49 per share** was paid in March 2025, and a subsequent dividend of **$0.50 per share** was announced for June 2025, a 2% increase[6](index=6&type=chunk)[15](index=15&type=chunk) - Subsequent to quarter end, the company **increased its revolving credit facility to $750 million** and its **Term Loan B to $600 million**, extending maturities to 2030 and 2032, respectively[13](index=13&type=chunk) Key Financial Position Metrics (as of March 31, 2025) | Metric ($ Millions) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $49.4 | $56.7 | | Long-term debt | $1,974.2 | $1,783.1 | [Financial Statements](index=7&type=section&id=Financial%20Statements) The statements detail a year-over-year decline in revenue and net income, alongside shifts in assets and liabilities [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2025 revenue and net income decreased to $4.53 billion and $53.2 million respectively, due to lower sales Q1 Income Statement Highlights ($ Millions, except per share data) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total operating revenues | $4,525.4 | $4,843.7 | | Income from operations | $88.0 | $105.2 | | Income before income taxes | $61.9 | $81.9 | | Net Income | $53.2 | $66.0 | | Diluted Earnings Per Share | $2.63 | $3.12 | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) Total assets stood at $4.50 billion, while stockholders' equity declined to $719.6 million due to share repurchases Balance Sheet Summary ($ Millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $716.4 | $748.1 | | Total assets | $4,502.5 | $4,541.6 | | Total current liabilities | $891.8 | $947.9 | | Total liabilities | $3,782.9 | $3,701.5 | | Total stockholders' equity | $719.6 | $840.1 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated $128.5 million in operating cash flow, funding investments and shareholder returns Q1 Cash Flow Summary ($ Millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $128.5 | $136.0 | | Net cash required by investing activities | $(87.7) | $(74.9) | | Net cash required by financing activities | $(38.4) | $(122.2) | | **Net increase (decrease) in cash** | **$2.4** | **$(61.1)** | [Non-GAAP Financial Measures](index=12&type=section&id=Supplemental%20Disclosure%20Regarding%20Non-GAAP%20Financial%20Information) Adjusted EBITDA, a key non-GAAP metric, was $157.4 million, used by management to assess core operating performance - The company uses **Adjusted EBITDA** for operational and financial decision-making, as it believes the measure is a more reliable indicator of ongoing operating performance and the ability to generate cash flow from operations[33](index=33&type=chunk) Reconciliation of Net Income to Adjusted EBITDA ($ Millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $53.2 | $66.0 | | Income tax expense | $8.7 | $15.9 | | Interest expense, net | $25.5 | $23.7 | | Depreciation and amortization | $68.2 | $58.7 | | **EBITDA** | **$155.6** | **$164.3** | | Other adjustments | $1.8 | $(0.0) | | **Adjusted EBITDA** | **$157.4** | **$164.3** |

Core Insights - Murphy USA (MUSA) distinguishes itself in the competitive retail sector through a high-volume, low-cost operating model, maintaining profitability despite tight margins [1] - The company's ownership of over 90% of its fuel stations is a significant strength, contributing to low operating costs [1] Group 1: Strategic Advantages - Proximity to Walmart supercenters enhances customer traffic, with many locations offering fuel discounts through Walmart programs [2] - The acquisition of QuickChek has expanded Murphy USA's convenience store offerings, improving product variety and boosting non-fuel revenues [3] Group 2: Shareholder Value - Since 2014, Murphy USA has reduced its outstanding share count through aggressive buybacks, leading to growth in earnings per share [4] Group 3: Challenges - The company carries a large amount of debt, which poses risks during commodity price fluctuations, and rising costs are pressuring margins [5] - Merchandise sales growth has been softer than expected, raising concerns about future revenue growth [12] Group 4: Valuation and Market Position - Murphy USA's stock trades above its five-year historical average on a forward price/earnings basis, indicating that much of the expected growth is already reflected in the price [6] - The stock has underperformed this year, down 7.3%, while competitors like Casey's General Stores have seen gains [12]

Core Viewpoint - Market sell-offs create opportunities for investors to acquire stocks at discounted prices, including steady dividend stocks like Murphy USA, which has seen a significant decline in share price despite strong operational performance [1][2]. Group 1: Company Overview - Murphy USA is the fourth-largest convenience store chain in the U.S., operating over 1,760 stores across 27 states and serving approximately 2 million customers daily [4]. - The company has been a strong performer since its market debut in 2013, achieving an 11-bagger return for investors [2]. Group 2: Operational Strengths - Despite a 22% decline in share price, Murphy USA's operations remain robust, with a focus on low prices and a strategic location adjacent to Walmart stores [5][6]. - The company has outperformed the U.S. fuel sales growth rate, achieving a 14% annual growth in gallons sold since 2013, compared to the 4% national average [7]. Group 3: Growth Strategy - Murphy USA plans to open 50 new stores annually and convert 30 kiosk stores into larger formats, resulting in a 4% annualized store count growth [8]. - The company has increased its gross profit margins from 5% in 2013 to 11% today, supported by a significant stock buyback program [8]. Group 4: Financial Performance - Management has reduced the outstanding shares by 57% since 2013, significantly boosting per-share financial metrics, including a tenfold increase in free cash flow per share [9][10]. - Murphy USA trades at a price-to-free cash flow (P/FCF) ratio of 23, which is below the S&P 500 average of around 32, indicating a submarket valuation despite historical outperformance [11][12]. Group 5: Dividend Growth - The company has increased its dividend for 12 consecutive quarters, nearly doubling its payments since 2021, with a current yield of 0.4% that utilizes only 9% of its free cash flow [14][15]. - This growing dividend serves as an additional method to reward shareholders alongside stock buybacks [15]. Group 6: Overall Assessment - Murphy USA is positioned as a staple goods provider with consistent cash flows, allocating half of its cash to new store growth and the other half to shareholder returns through buybacks and dividends [16].

Core Viewpoint - Murphy USA's recent earnings report shows a mixed performance, with strong merchandise sales but declining petroleum product sales, leading to a decrease in overall revenues and profit margins [2][3][4]. Financial Performance - The company reported Q4 2024 earnings per share of $6.96, exceeding the Zacks Consensus Estimate of $6.43, but down from $7 in the previous year due to weak petroleum sales [2]. - Operating revenues were $4.7 billion, a 7.1% decline year over year, missing the consensus estimate by $169 million [2]. - Petroleum product sales were $3.6 billion, down 9.6% from Q4 2023 and below the estimated $4.1 billion [3]. Sales Contribution - Total fuel contribution decreased by 1% year over year to $389.1 million, with retail fuel margins contracting [4]. - Retail fuel contribution fell 8% year over year to $345.8 million, with margins narrowing to 28.9 cents per gallon from 31.1 cents [5]. - Merchandise sales increased by 3.2% year over year to $1.1 billion, with a contribution of $208.8 million, up 5.6% due to higher sales and improved unit margins [3][6]. Operational Metrics - Retail gallons sold declined by 1% year over year to 1,196.8 million, missing estimates [5]. - Monthly fuel gallons fell 2.4% from the prior year, while merchandise sales increased by 2% on a per store basis [7]. Balance Sheet - As of December 31, the company had cash and cash equivalents of $47 million and long-term debt of $1.8 billion, with a debt-to-capitalization ratio of 68.6% [8]. - The company repurchased shares worth $126.2 million during the quarter [8]. Market Sentiment - There has been a downward trend in estimates, with a consensus estimate shift of -14.37% in the past month [9]. - Murphy USA holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [12]. Investment Scores - The company has a strong Growth Score of A but a low Momentum Score of F, with an overall VGM Score of A, placing it in the top quintile for value investment strategy [11].

Core Points - Murphy USA Inc. is celebrating the five-year anniversary of its partnership with Boys & Girls Clubs of America through the 'Great Futures Fueled Here' campaign, which has raised over $11 million since its inception in 2020 [1][3][4] - The 2025 customer round-up campaign will run from March 5 to April 30, 2025, across 27 states, allowing customers to round up their purchases or donate directly to support local youth [2][4] - The partnership has significantly impacted young people's lives, with initiatives like the Back-to-School Prep-Rally in 2024, focusing on goal-setting and STEM activities [3][4] Company Overview - Murphy USA operates more than 1,750 stores primarily in the Southwest, Southeast, Midwest, and Northeast United States, serving approximately two million customers daily [6] - The company ranks 214 among Fortune 500 companies and employs around 17,200 people [6]

Retail Operations - The company sold approximately 4.8 billion gallons of motor fuel through its retail outlets in 2024[33]. - As of December 31, 2024, the company operated a total of 1,757 retail stores, with 368 located in Texas and 136 in New Jersey[34]. - As of December 31, 2024, the total number of branded retail outlets increased to 1,757 from 1,733 in 2023, with Murphy USA and Murphy Express outlets at 1,601[41]. - The company operates with a low-cost retail model, with 75% of its stores located on company-owned property, minimizing rent expenses[20]. - The company utilizes a standard POS system across all stores, enhancing operational efficiency and supporting third-party delivery services[48][50]. Financial Performance - The company repurchased approximately $446.6 million worth of common shares in 2024, with a total of $3.5 billion repurchased over the past eleven years[23]. - The quarterly dividend was raised four times in 2024, increasing from $0.41 per share in Q4 2023 to $0.48 per share, resulting in an annualized dividend of $1.92 per share[23]. - Total fuel contribution per gallon decreased to 30.5 cents from 31.4 cents in 2023, while retail fuel margin per gallon increased slightly to 28.1 cents from 27.6 cents[41]. - Merchandise sales revenue per store per month rose to $204.3 thousand in 2024, up from $199.1 thousand in 2023, with merchandise margin at 19.8%[41]. - Murphy USA's floating rate term loan amounts to $386.0 million, with an additional $56.0 million outstanding on its revolving credit facility as of December 31, 2024[266]. Growth and Expansion - The company plans to build up to 50 new NTI locations and 30 raze-and-rebuild stores in 2025, targeting at least 50 NTI and 30 raze-and-rebuilds annually in future periods[26]. - The company aims to enhance its merchandise mix by developing higher-margin non-nicotine sales and expanding food and beverage capabilities[27]. - The company expects to maintain a disciplined capital expenditure program focused on organic growth, supported by a strong cash position and credit availability[22]. Employee and Human Capital - The company has approximately 17,200 employees as of December 31, 2024, contributing to its sustainable business model and organic growth opportunities[24]. - As of December 31, 2024, Murphy USA employed approximately 17,200 individuals, including 5,900 full-time and 11,300 part-time employees[63]. - The company has consolidated virtually all QuickChek benefit programs with its own, ensuring competitive benefit packages for all eligible employees starting in 2025[68]. - The company is committed to employee development through various initiatives, including mentorship programs and tuition reimbursement[69]. - Murphy USA's human capital management is driven by core principles of Integrity, Respect, Citizenship, and Spirit[65]. Market and Regulatory Environment - The retail gasoline industry is highly competitive, with significant competition from non-traditional retailers, impacting market share and pricing strategies[42][44]. - Consumer demand for motor fuel typically increases during the summer driving season, affecting revenues and sales volumes, which are generally higher in the second and third quarters[46]. - The company faces regulatory challenges related to environmental laws, which may increase operational costs and compliance requirements[52][58]. - The company is subject to stringent fuel economy standards and GHG emission regulations, which could adversely impact demand for its products[54][56]. - The company actively monitors changes in labor laws to ensure compliance and manage potential increases in labor costs[62]. Safety and Risk Management - The company emphasizes a strong safety culture, focusing on employee roles in identifying and mitigating safety risks[69]. - The company utilizes limited derivative instruments to manage commodity price risks, with a 10% change in benchmark prices having an immaterial impact on financials[265]. - Interest rate fluctuations tied to SOFR can affect the company's interest expenses, but a 10% change would also have an immaterial impact on financial statements[266].

Company Performance - Murphy USA Inc. reported fourth-quarter 2024 earnings per share of $6.96, exceeding the Zacks Consensus Estimate of $6.43, primarily driven by strong merchandise sales [1] - The company's operating revenues were $4.7 billion, a decrease of 7.1% year over year, missing the consensus mark by $169 million [2] - Revenues from petroleum product sales were $3.6 billion, down 9.6% from the fourth quarter of 2023 and below the estimate of $4.1 billion [2] Fuel Contribution - Total fuel contribution fell 1% year over year to $389.1 million, with a retail fuel margin of 32.5 cents per gallon, unchanged from the previous year [3] - Retail fuel contribution decreased 8% year over year to $345.8 million, with margins narrowing to 28.9 cents per gallon from 31.1 cents in the corresponding period of 2023 [4] - Retail gallons declined 1% year over year to 1,196.8 million, missing the estimate of 1,210 million [4] Merchandise Sales - Contribution from merchandise increased 5.6% to $208.8 million, supported by higher sales and an increase in unit margins from 19.4% to 19.9% [5] - On a same-store sales (SSS) basis, total merchandise contribution rose 2.4% year over year, primarily due to a 4.7% increase in nicotine margins [5] Balance Sheet - As of December 31, Murphy USA had cash and cash equivalents of $47 million and long-term debt of $1.8 billion, with a debt-to-capitalization ratio of 68.6% [7] - The company opened 22 new retail locations and closed five, bringing the total store count to 1,757 [7] - During the quarter, Murphy USA repurchased shares worth $126.2 million [7]

Financial Data and Key Metrics Changes - The company reported over $1 billion in EBITDA for 2024, indicating sustainable earnings potential [7] - Retail margins improved by 50 basis points to $0.281 per gallon despite challenging market conditions [11] - Operating expenses per store month increased by 5.2% in 2024, driven by new larger stores [24][25] Business Line Data and Key Metrics Changes - Merchandise contribution dollars reached $834 million in 2024, up 3.8% from 2023, with a notable increase in the fourth quarter [22] - QuickCheck Markets faced pressure from food inflation and competition, impacting their performance [9][23] - The Murphy branded network saw per store merchandise sales grow by 3.5% and margin dollars by 5.9% for the full year [11] Market Data and Key Metrics Changes - The company sold approximately 4 billion gallons of fuel in 2014, growing to nearly 5 billion gallons by 2024, representing a 21% increase [20] - Average fuel volumes per store month in 2024 were 240.6 thousand gallons, at the low end of guidance [16] - The company expects to sell just over 5 billion gallons of fuel in 2025, a 4.5% increase from 2024 [19] Company Strategy and Development Direction - The company plans to accelerate its new store program, targeting up to 50 new stores in 2025 [15] - A balanced capital allocation strategy focusing on store growth and share repurchase has been emphasized [31][32] - The company aims to enhance store performance through initiatives like fuel dispenser health improvements [98] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a disappointing year due to various challenges, including rising prices and severe weather [8][9] - The company remains optimistic about long-term demand stability and margin growth potential [12] - Management expects continued pressure on QuickCheck Markets but anticipates strong performance in core merchandise categories [23][24] Other Important Information - Total capital spending in 2024 was over $500 million, with a similar level expected for 2025 [29][30] - The company repurchased approximately 938 thousand shares in 2024, reflecting a commitment to shareholder value [31][32] Q&A Session Summary Question: What drove the non-nicotine category to flip positive in the quarter? - Strong performance in Murphy stores with double-digit growth in several categories attributed to digital transformation initiatives [44] Question: Can you walk us through the implied non-nicotine gross margins decline despite better sales? - The gap between sales growth and margin growth is primarily due to how lotto and lottery are reported [48] Question: What are your thoughts on the buyback versus balance sheet leverage? - The company maintains a 50/50 balanced capital allocation approach and can leverage up as earnings power grows [56] Question: Can you discuss the CapEx guidance for 2025? - CapEx for 2025 is expected to be around $500 million, with a shift from raise and rebuilds to new store openings [62] Question: What discussions are you having with vendors regarding promotional support in 2025? - The company values high volumes per store, which positions it well for discussions with vendors [68] Question: What are your expectations for the performance of new stores? - New stores have shown high performance metrics, and the company is focused on making up for missed expectations in future years [86]