Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $30.9 million, down from $33.2 million in Q1 2024, primarily due to lower retail fuel and merchandise contributions [21] - The net loss for the quarter was $12.7 million compared to a net loss of $0.6 million in the year-ago period [24] - Total capital expenditures for the quarter were $27.4 million [25] Business Line Data and Key Metrics Changes - Retail segment operating income was approximately $40.2 million, down from $46.5 million in the year-ago period [21] - Same store merchandise sales excluding cigarettes decreased by 5.2%, while total same store merchandise sales were down 6.9% [22] - Wholesale segment operating income was $18.6 million, slightly up from $18.3 million in the year-ago period [23] - Fleet segment operating income increased to $11 million from $9.8 million in the year-ago period [24] Market Data and Key Metrics Changes - Same store fuel contribution decreased by approximately $3.2 million due to a 6.2% decline in gallons sold [22] - Fuel margin for the wholesale segment was $0.88 per gallon, down from $0.92 per gallon in the year-ago period [23] - Total gallons from channel optimization were up, contributing close to 14 million gallons for the quarter [23] Company Strategy and Development Direction - The company is focused on a transformation strategy that includes dealerization, expansion of high-margin categories, and targeted promotional initiatives [9][10] - The Fueling America Future campaign aims to provide discounts on fuel and enhance customer engagement [10][12] - The company is committed to organic growth and store-level reinvestment, with plans to remodel stores and introduce new food offerings [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted challenges from lower traffic, consumer spending, and severe weather impacting store visits [6][7] - Despite these challenges, management expressed optimism for Q2, citing improvements in sales as weather conditions normalize [34] - The company expects total adjusted EBITDA for Q2 2025 to be in the range of $70 million to $80 million [25] Other Important Information - The company repurchased approximately 1.3 million shares at an average price of $4.1 per share during the quarter [19] - The loyalty program saw an increase in enrolled members, with approximately 27,000 new members added in Q1 2025 [17] Q&A Session Summary Question: Performance post-winter weather - Management indicated that sales improved slightly in April following severe weather in February, which had a significant negative impact on sales [34] Question: Dealerization savings impact - The $20 million annualized savings from dealerization will be realized at scale, with $2.4 million delivered this quarter from transitioned sites [38] Question: Remodel initiative timeline - The company plans to complete seven pilot remodels by Q3 2025, with potential for accelerated rollout based on results [40] Question: Fuel margins and price dynamics - Management noted that fuel margins are currently strong due to market volatility and competitive pricing strategies [45][49] Question: Capital allocation and buybacks - Management is analyzing the cadence of stock repurchases but did not provide specific guidance on future buybacks [50] Question: Dealerization pace and visibility - The company is on track with its dealerization plan, having closed 77 locations and having 130 under contract [56][58] Question: Loyalty program continuity post-dealerization - Loyalty members will continue to access benefits at other locations, as the program is tied to company-operated stores [76] Question: G&A expenses and dealerization impact - Management is focused on reducing G&A expenses as more retail sites transition to the wholesale channel [82]

Core Insights - ARKO Corp. reported a net loss of $12.7 million for Q1 2025, a significant increase from a net loss of $0.6 million in the same quarter last year, indicating challenges in the current consumer environment [6][5] - The company achieved an adjusted EBITDA of $30.9 million, down from $33.2 million year-over-year, reflecting ongoing macroeconomic pressures [6][5] - Merchandise margin improved to 33.2% from 32.5%, despite a decline in merchandise contribution to $117.6 million from $134.9 million, primarily due to the dealerization program [6][10] - Retail fuel margin increased to 37.9 cents per gallon, up from 36.4 cents per gallon, although retail fuel contribution decreased to $85.3 million from $92.9 million [6][11] Financial Performance - Total revenues for Q1 2025 were $1.83 billion, down from $2.07 billion in Q1 2024, driven by a decrease in fuel revenue to $1.45 billion from $1.63 billion [38] - Fuel gallons sold decreased to 225,063 thousand gallons from 255,464 thousand gallons, with same-store fuel gallons sold down 6.2% [8][11] - Merchandise revenue also declined to $354.5 million from $414.7 million, with same-store merchandise sales decreasing by 6.9% [8][10] Strategic Initiatives - The company converted 59 retail stores to dealer sites in Q1 2025, with plans for further conversions throughout the year, expecting a cumulative annualized operating income benefit exceeding $20 million [6][5] - ARKO initiated a store remodeling initiative aimed at enhancing customer experience, with the first pilot remodel expected to begin construction in May 2025 [6][5] - The company launched the "Fueling America's Future" campaign, offering loyalty customers value promotions and discounts at the pump [6][5] Shareholder Returns - The Board declared a quarterly dividend of $0.03 per share, to be paid on May 30, 2025, reflecting confidence in cash generation capabilities [21][22] - During Q1 2025, the company repurchased approximately 1.3 million shares for about $5.2 million, indicating a commitment to shareholder returns [7][22] Liquidity and Capital Expenditures - As of March 31, 2025, ARKO's total liquidity was approximately $847 million, with $265 million in cash and cash equivalents and $582 million available under lines of credit [20] - Capital expenditures for the quarter were approximately $27.4 million, including investments in new stores and upgrades [20]

Group 1 - The company has rolled out its strategic plan amidst a challenging economic climate, with steady activity but ongoing financial performance impacts due to transformation efforts [4][5][6] - Consolidated net sales for Q1 2025 amounted to €2.0 billion, reflecting a decline of -1.2% on a like-for-like basis and -5.0% as reported, influenced by a -1.1-point calendar effect and a -2.7-point effect from streamlining the convenience brand store network [5][6][8] - The convenience brands recorded net sales of €1.7 billion, down -0.7% on a like-for-like basis, showing an improvement compared to the previous quarter [9][10] Group 2 - The company closed 466 stores during Q1 2025, with 96% operated by franchisees or under business leases, while opening 31 new stores [11][14] - The adjusted EBITDA for Q1 2025 was €100 million, down -€6 million from Q1 2024, but would have increased by +€6 million excluding disynergies [23][25] - Free cash flow for Q1 2025 was -€81 million, an improvement of +€246 million compared to -€327 million in Q1 2024 [29][30] Group 3 - The company has accelerated the roll-out of new concepts across its brands, including the expansion of Franprix's "Oxygène" concept and Naturalia's "La Ferme" concept [7][15][16] - Cdiscount's overall like-for-like gross merchandise volume (GMV) increased by +2%, supported by a relaunch strategy initiated in Q3 2024 [20][21] - The company disposed of €111 million in real estate assets in Q1 2025, contributing to debt reduction efforts [35][42]

RICHMOND, Va., April 24, 2025 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO) (the “Company”), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced that the Company will host a conference call on Thursday, May 8, 2025 at 5:00 p.m. Eastern Time to discuss its financial results for the first quarter ended March 31, 2025. ARKO Corp.’s management team will host the conference call, followed by a question-and-answer period. The Company will provide its fina ...

Core Insights - Zacks Premium offers various tools and services to help investors achieve long-term success in the stock market [1] - The Zacks Focus List is a curated portfolio of 50 stocks expected to outperform the market over the next 12 months [3][4] Performance Metrics - In 2020, the Focus List gained 13.85% on an annualized basis, outperforming the S&P 500's return of 9.38% [5] - Cumulatively, the Focus List has returned 2,519.23% from February 1, 1996, to March 31, 2021, compared to the S&P's return of 854.95% during the same period [5] Methodology - The Focus List is based on earnings estimate revisions, which are critical for predicting future growth and profitability [6][7] - The Zacks Rank, a proprietary stock-rating model, utilizes changes in quarterly earnings expectations to help build a winning portfolio [8] Zacks Rank Components - The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise, which are recalculated nightly [9] - Stocks in the Focus List are primarily from 1 (Strong Buy) or 2 (Buy) ranked companies, indicating a bullish earnings consensus among analysts [9] Case Study: Casey's General Stores - Casey's General Stores, added to the Focus List at $171.98 per share, has seen a share price increase of 167.93% to $460.78 [12] - The Zacks Consensus Estimate for Casey's earnings has increased to $13.95, with an average earnings surprise of 22.7% [13]

Core Insights - Convenience stores (C-stores) are increasingly capturing market share from grocery and fast-food chains, leading to heightened investor interest in the net-lease market [1] - The convenience store industry is evolving to meet changing consumer needs, driven by smaller households, urban locations, and shifting food preferences [2] C-Store Product Mix Drives Growth - C-stores have transitioned from fuel and snack retailers to quick-service food and grocery alternatives, with prepared food sales rising by 12.2% year-over-year [3] - 56% of consumers now view C-stores as viable substitutes for fast-food chains, indicating a significant shift in consumer perception [3] - Despite narrow profit margins of around 5% to 7%, high product turnover and steady consumer visits make C-stores a reliable income source for investors [3] Changing Real Estate Needs - As C-stores expand food service offerings, their real estate needs are evolving, with chains investing in larger formats to accommodate food preparation areas [5] - Many operators are returning to urban centers and exploring non-traditional spaces, such as college campuses and downtown locations, creating new opportunities for real estate investors [5] Investment Opportunities for C-Stores - The sector is experiencing significant consolidation, with major players like 7-Eleven planning to open 500 new stores in the U.S. and Canada by 2027 [6] - Regional chains such as Wawa, Sheetz, and Buc-ee's are also expanding into new markets, providing opportunities for investors to acquire properties with stronger tenant profiles and predictable cash flows [6] Stability and Future of C-Stores - C-stores are characterized by convenient locations, long-term leases (up to 20 years), and low vacancy rates, making them a stable investment option in the net-lease market [7] - The ongoing transformation of C-stores, coupled with economic trends like inflation and rising grocery costs, positions them as a key asset class for investors [8] - A new generation of consumers focused on health, value, speed, and convenience further enhances the attractiveness of C-stores for investment [9]

Casey's General Stores, Inc. (NASDAQ: CASY ) is a convenience store chain that we previously traded and have liked its growth. We have continued to rate the stock a quality and bullish hold, but the valuation hadLooking for opportunistic returns following the big selloff? That is what we are doing at BAD BEAT InvestingEnjoy more rapid-returns with our strategy to advance your savings and retirement timeline by embracing a blended trading and income approach!If you would like, you can try our service out and ...

Shares of the United States' third-largest convenience store and fifth-largest pizza chain, Casey's General Stores (CASY 6.18%), were up 6% as of 11:30 a.m. ET on Wednesday, according to data provided by S&P Global Market Intelligence.Casey's delivered third-quarter earnings that smashed analysts' expectations and showed that its growth prospects remain as bright as ever.Casey's surprisingly good quarter and promising futureFor the third quarter, Casey's reported that earnings before interest, taxes, deprec ...

Financial Data and Key Metrics Changes - Diluted EPS was $2.33 per share and net income was $87 million, both flat compared to the prior year [10] - EBITDA increased to $242 million, up 11% from the prior year [27] - Total revenue for the quarter was $3.9 billion, an increase of $574 million or 17.3% from the prior year [17] - Gross profit was $913 million, an increase of $126 million or 16% from the prior year [20] Business Line Data and Key Metrics Changes - Inside same-store sales increased by 3.7% for the quarter, or 8% on a two-year stack basis [12] - Prepared food and dispensed beverage sales rose by $48 million to $397 million, an increase of 13.7% [19] - Grocery and general merchandise sales increased by $138 million to $1 billion, an increase of 15.9% [19] - Same-store prepared food and dispensed beverage sales were up 4.7% or 12.6% on a two-year stack basis [12] Market Data and Key Metrics Changes - Fuel gallons sold were up over 20% [10] - Same-store gallons sold increased by 1.8% with a fuel margin of $0.364 per gallon [14] - The Mid-Continent region saw a decline of approximately 4% in fuel gallons sold, indicating market share growth [15] Company Strategy and Development Direction - The company is focused on accelerating the food business, with strong performance in prepared food innovation [36] - The integration of the Fikes transaction is a key strategic initiative, with expectations of achieving $45 million in synergies over three to four years [64] - The company aims to enhance operational efficiency, achieving reduced same-store labor hours for 11 consecutive quarters [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a potentially volatile environment due to enhanced capabilities and a resilient business model [49][50] - The company expects to achieve its target leverage ratio of approximately 2 times by the end of the fiscal year [28] - Management anticipates EBITDA growth of approximately 11% for the fiscal year [29] Other Important Information - Operating expenses increased by 17.8% or $101.3 million in the quarter, with 14% attributed to unit growth [24] - The effective tax rate for the quarter was 19.2%, down from 24.1% in the prior year [26] - The company maintained its quarterly dividend at $0.50 per share [29] Q&A Session Summary Question: How has Casey's adapted to a volatile environment? - Management highlighted improvements in procurement, data analytics, and guest insights, enhancing confidence in navigating uncertainties [47][48] Question: What are the timelines for improving margins at Fikes? - Management indicated that improvements in prepared food margins will take time, with kitchens being added to stores to enhance product offerings [53][56] Question: How is the integration of Fikes performing? - Early performance is satisfactory, with high-quality stores in attractive geographies, but the first quarter was impacted by winter weather [62] Question: What is the outlook for consumer spending? - Management noted some pressure on lower-income consumers but emphasized that the majority of their customer base remains stable [85] Question: How is the company positioned in a recessionary environment? - Management stated that Casey's has historically performed well during recessions due to its focus on basic daily needs and competitive pricing [75][76] Question: What is the status of the wings business rollout? - The wings business is still in early testing stages, with positive results so far, but no final decision has been made for broader rollout [122] Question: How much EBITDA did Fikes contribute this quarter? - Fikes was EBITDA dilutive this quarter due to integration costs, but it is expected to be modestly positive in the next quarter [113]

Financial Data and Key Metrics Changes - Consolidated revenue growth of 12.8% in Q4 2024, with operating income rising by 31.5% compared to the previous year [21] - Net consolidated income increased by 78.3% to nearly MXN 11 billion, driven by a non-cash change gain of MXN 2.7 billion and higher net income from discontinued operations of MXN 3.3 billion [21][22] - Gross margin expanded by 230 basis points to 47.7%, with operating margin increasing by 50 basis points to 11.7% of sales [25][26] Business Line Data and Key Metrics Changes - Proximity Americas division saw total revenues grow by 13.2%, with same-store sales growth of 3.8% despite a 2.8% decline in average traffic [24] - Health division revenues grew by 13.3%, with same-store sales increasing by 9.4% and operating income rising by 109.7% [29] - OXXO Gas reported a 9.7% increase in same-station sales and an 8% increase in total revenues [32] Market Data and Key Metrics Changes - Proximity Europe revenues increased by 21.5% in pesos, driven by retail revenue growth across countries [27] - Coca-Cola FEMSA recorded double-digit increases across their income statement, with income from operations rising by 25% [36] Company Strategy and Development Direction - FEMSA Forward initiative is nearing completion of planned divestitures, having monetized approximately $10.7 billion to focus on core business units [11][39] - Plans for 2025 include deploying nearly MXN 66 billion or $3.2 billion in capital returns, including ordinary and extraordinary dividends and share buybacks [14][15] - The company aims to maintain a disciplined approach to capital allocation, focusing on long-term intrinsic value per share [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic uncertainties and a softer consumer environment in Mexico, emphasizing the urgency to drive growth and profitability [46] - The company remains optimistic about growth opportunities across its business units, leveraging digital capabilities and operational efficiencies [10][46] Other Important Information - The succession process for the CEO position is underway, with a special committee formed to oversee the process [16][18] - The digital ecosystem has been rebranded as Spin, with significant growth in active users and sales linked to the loyalty program [34][35] Q&A Session Summary Question: Insights on shareholder remuneration and buybacks - Management plans to execute a mix of local buybacks in Mexico and accelerated share repurchases in the US, similar to previous years [55][56] Question: OXXO store expansion versus same-store sales trends - Management is confident in the ongoing expansion of OXXO stores, monitoring performance closely to ensure value creation [62][63] Question: Traffic decline attribution and operating leverage - Traffic decline is attributed to various factors, including weather and cannibalization, but management is confident in the store performance metrics [72][76] Question: Growth strategy in the US - The focus will be on organic growth through OXXO standalone stores and small bolt-on acquisitions, with an emphasis on profitability [90][91] Question: Financial services growth and potential banking license - The company is expanding financial services and plans to apply for a banking license, focusing on responsible growth in this area [100][101]