This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Dive Brief: LKM Convenience, an operator of the Brother’s Food Mart c-store chain in Louisiana, declared Chapter 11 bankruptcy last week, according to filings with the U.S. Bankruptcy Court for the Eastern District of Louisiana. LKM, founded in 2008, is managed by Lenny Motwani, according to the filings. It’s not clear how many Brother’s locations Motwani operates ...

My car mostly runs on electricity and has a tiny two-gallon gas backup. On long trips, I stop at gas stations more often than I did with a traditional car, but the tank fills quickly, and I rarely go inside the store. Drivers of electric vehicles are visiting convenience stores less often, contributing to declining in-store sales for gas retailers. I’m not alone. Many EV owners are spending less time, and money, inside gas station stores. These shifts in consumer behavior are among the factors behind th ...

This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Dive Brief: BrakeTime Corner Market has signed a franchise agreement with Burger King, Rene Da Costa, the convenience retailer’s vice president of food, dispensed beverage and QSR, confirmed to C-Store Dive. The agreement includes both BrakeTime-adjacent and standalone Burger Kings, although there’s no set number of restaurants initially planned for, Da Costa said ...

Core Viewpoint - Investors are focusing on the convenience retail sector due to changing demand and competitive pressures, with BofA Securities initiating coverage on Murphy USA Inc. and Casey's General Stores, Inc. [1] Group 1: Casey's General Stores - Analyst Lisa K. Lewandowski initiated coverage with a Buy rating and a price target of $700, based on a 2027 EV-to-EBITDA multiple of 15.9 times, which is above the one-year average and most peers [2] - The premium valuation is justified by Casey's higher-margin foodservice mix and expected consistent EBITDA growth in the range of 8% to 10% over the medium term [3] - Fuel sales accounted for approximately 61% of fiscal 2025 revenue, but 70% of inside transactions exclude fuel purchases, indicating a shift towards food destinations [4] - Casey's is the third-largest convenience store operator in the U.S. and ranks among the largest pizza chains and liquor license holders [4] - The rural footprint is seen as a competitive advantage in underserved food markets, with expectations for foodservice margins to expand as CEFCO locations convert to Casey's formats starting in 2026 [5] Group 2: Murphy USA - Coverage of Murphy USA was reinstated with an Underperform rating and a price target of $405, using a 2027 EV-to-EBITDA multiple of 8.6 times, which is below the long-term average [6] - Heavy exposure to fuel and nicotine sales is a constraint, with low gas prices and muted fuel volatility limiting earnings leverage [7] - Declining cigarette volumes and a relatively small foodservice business further weigh on performance, especially amid pressure on lower-income consumers [7] - Positive aspects include lean operations, a value-focused pricing strategy, and Walmart-adjacent locations, which provide some long-term support [8]

Core Viewpoint - Investors are focusing on the convenience retail sector due to changing demand and competitive pressures, with BofA Securities initiating coverage on Murphy USA Inc. and Casey's General Stores, Inc. [1] Group 1: Casey's General Stores - Analyst Lisa K. Lewandowski initiated coverage with a Buy rating and a price target of $700, based on a 2027 EV-to-EBITDA multiple of 15.9 times, which is above the one-year average and most peers [2] - The premium valuation is justified by Casey's higher-margin foodservice mix and expected consistent EBITDA growth in the range of 8% to 10% over the medium term [3] - Fuel sales accounted for approximately 61% of fiscal 2025 revenue, but 70% of inside transactions exclude fuel purchases, indicating a shift towards food destinations [4] - Casey's is the third-largest convenience store operator in the U.S. and ranks among the largest pizza chains and liquor license holders [4] - The rural footprint is seen as a competitive advantage in underserved food markets, with expectations for foodservice margins to expand as CEFCO locations convert to Casey's formats starting in 2026 [5] Group 2: Murphy USA - Coverage of Murphy USA was reinstated with an Underperform rating and a price target of $405, using a 2027 EV-to-EBITDA multiple of 8.6 times, which is below the long-term average [6] - Heavy exposure to fuel and nicotine sales is a constraint, with low gas prices and muted fuel volatility limiting earnings leverage [7] - Declining cigarette volumes and a relatively small foodservice business further weigh on performance, especially amid pressure on lower-income consumers [7] - Positive aspects include lean operations, a value-focused pricing strategy, and Walmart-adjacent locations, which provide some long-term support [8]

This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Dive Brief: Marissa Jarratt, executive vice president and chief marketing and sustainability officer for 7-Eleven, stepped down from the convenience retailer last week, according to an internal memo seen by C-Store Dive. Jarratt’s departure was announced internally on Nov. 19, and her last day with 7-Eleven was Jan. 2, according to the memo, which was signed by fo ...

This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. 3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry. In its third-quarter earnings update earlier this week, Seven & i Holdings shared progress on several major initiatives as well as its financial results and the evolving look of its retail footprint. Today, we’re digging into that last topic. At the end of fiscal Q ...

This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Dive Brief: Niall Anderton, senior vice president of strategy and transformation at Alimentation Couche-Tard, has been named CEO of Irish food retailer and wholesaler Musgrave Group, according to an announcement this week. Anderton will join Musgrave in May, with incumbent Noel Keeley retiring at the end of the year, according to the announcement. As one of Couche ...

Core Insights - Casey's General Stores (CASY) shows potential as a strong investment due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][9] Earnings Estimate Revisions - The current quarter's earnings estimate is $2.93 per share, reflecting a year-over-year increase of +25.8% [5] - Over the past 30 days, the Zacks Consensus Estimate for Casey's has risen by 8.32%, with two estimates moving higher and no negative revisions [5] - For the full year, the expected earnings are $17.28 per share, representing a year-over-year change of +18.0%, with a 5.56% increase in consensus estimates due to positive revisions [6][7] Analyst Sentiment - There is strong agreement among analysts in raising earnings estimates for Casey's, contributing to a favorable outlook for the stock [3] - The Zacks Rank for Casey's is 2 (Buy), indicating a positive sentiment based on the trend of earnings estimate revisions [8] Stock Performance - The stock has gained 7.6% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9]

Core Insights - Casey's General Stores reported strong year-over-year growth in its second-quarter fiscal 2026 results, with earnings per share of $5.53, surpassing estimates, but total revenues of $4,506.1 million fell short of expectations [2][3]. Financial Performance - The company achieved a 14% increase in earnings per share from $4.85 in the prior-year quarter [3]. - Total revenues increased by 14.2% from $3,946.8 million in the year-ago period, despite missing the Zacks Consensus Estimate of $4,553 million [3]. - Inside sales rose 13% year over year to $1.66 billion, with same-store sales increasing by 3.3% [4]. Margins and Expenses - Gross profit increased to $1.12 billion, up 17% year over year, with gross margin expanding by 60 basis points to 24.9% [5]. - EBITDA rose 17.5% year over year to $410.1 million, with an EBITDA margin of 9.1%, reflecting a 30 basis point increase [6]. - Operating expenses increased by 16.7% to $711.6 million, primarily due to the operation of 236 additional stores [7]. Segment Performance - Prepared Food & Dispensed Beverage sales grew 12% year over year to $467.8 million, with same-store sales increasing by 4.8% [8]. - Grocery & General Merchandise sales rose 13.4% to $1.19 billion, with same-store sales advancing by 2.7% [9]. - Fuel sales increased by 11.3% year over year to $2.69 billion, with fuel gallons sold jumping 16.8% to 906.7 million [10]. Financial Snapshot - As of October 31, 2025, Casey's operated 2,921 stores, with cash and cash equivalents of $492 million and long-term debt of $2.35 billion [11]. - The company declared a quarterly dividend of 57 cents per share, continuing its track record of dividend payments [12]. Outlook - For fiscal 2026, management expects EBITDA growth of 15-17% and total operating expenses to increase by 8-10% [13]. - Inside same-store sales are anticipated to grow by 3-4%, with an expected inside margin of 41-42% [14]. - The consensus estimate has shifted upward by 8.32% in the past month, indicating positive investor sentiment [15].