Arko’s dealerization strategy starting to bear fruit, CEO says

Group 1 - Arko announced a dealerization program in May 2024 aimed at reducing expenses, with a projected cumulative annualized operating income benefit of over $20 million [3][5] - The dealerization process involves complexities such as determining rents, maintenance responsibilities, and transferring licenses, which can be time-consuming [4] - As of the fourth quarter earnings call, Arko's store operating expenses dropped nearly 16% in Q4 and over 13% for the full fiscal year, indicating the benefits of the dealerization strategy [6] Group 2 - Arko has converted 409 locations to wholesale, with 256 conversions completed in fiscal 2025, and expects the dealerization project to conclude by the end of 2026 [6] - The company-operated c-store count is projected to fall below 1,000 for the first time since 2018, following the completion of the dealerization program [5][6] - Company leadership stated that the dealerization strategy is delivering on its promises, including reduced fixed costs and improved cash flow [5]