Core Insights - ARKO is implementing a dealerization strategy to enhance profitability and streamline operations, targeting approximately 1,000 core stores while converting around 120 additional locations into the wholesale segment by leasing to independent dealers [2] - The company has a strong acquisition history, completing 26 acquisitions from 2013 to 2024, while maintaining a disciplined approach with a minimum return on invested capital of 25% over the past five years [3] - ARKO has generated approximately $1.5 billion in cumulative adjusted EBITDA since its Nasdaq listing in 2020, operating over 3,500 locations across more than 30 states [4] Retail Operations - The retail segment's gross profit is diversified, with 59% coming from inside sales and other income, supported by centralized procurement and a common loyalty program across various banners [1] - The company is focusing on foodservice initiatives, launching a new food brand "fas craves" and reporting a 14% increase in inside sales from a pilot remodel store [8] - In the tobacco sector, ARKO is shifting focus from declining cigarette sales to other tobacco products, achieving a 4% growth in these products in 2025 compared to 2024 [7] Wholesale and Fleet Fueling - ARKO's business mix is shifting, with expectations that by the end of 2025, 50% to 55% of EBITDA will come from wholesale and fleet fueling, following the recent IPO of ARKO Petroleum [9] - The wholesale model is primarily cost-plus and contract-based, with 86% of contracts supporting predictable cash flow [11] - ARKO Petroleum supplies fuel to 2,053 dealer locations and operates 288 cardlock locations, capturing approximately 1% of the U.S. gasoline and diesel market [12] Financial Performance - For full-year 2025, ARKO reported $249 million in adjusted EBITDA and a net income of $9.1 million, reflecting a 9.1% increase in net income [15] - Retail operating expenses decreased by 13.3%, while same-store sales remained flat, and Q4 adjusted EBITDA increased by 16% [15] - The company ended the year with $305 million in cash and access to $760 million in additional liquidity, totaling over $1 billion, positioning it for future investments and M&A opportunities [17]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2025 grew 16% year-over-year to $66 million, with net income of $1.9 million, reversing a net loss of $2.3 million from the prior year [5][20]. - Retail merchandising margin increased by 140 basis points to 34.4%, while same-store merchandise sales were down 3% for the quarter and down 4.1% for the fiscal year 2025 [5][20]. - Retail fuel same-store gallons were down 4.1% for Q4 and down 5.4% for the fiscal year 2025, but retail fuel margins improved to approximately $0.445 per gallon in Q4 [20][21]. Business Line Data and Key Metrics Changes - The wholesale segment saw an 8% increase in fuel contribution to $24 million in Q4, with wholesale gallons increasing by 4% to 249 million gallons [21][22]. - Fleet Fueling segment contributed $15.9 million for Q4, with gallons totaling 34.9 million, compared to 36.1 million gallons in the prior year [22][23]. - Adjusted EBITDA for the year was $248.7 million, flat compared to $248.9 million in 2024, indicating strong cost control despite volume headwinds [23][24]. Market Data and Key Metrics Changes - The company gained market share in every nicotine category in 2025, with OTP up 4% and energy drinks up 8% [15][32]. - The consumer remains cautious, with spending driven by value-focused promotions and convenience [15][46]. - Early 2026 trends show mid-single-digit growth in same-store merchandise sales, despite disruptions from winter storms [15][16]. Company Strategy and Development Direction - The company is focused on executing its transformation plan, optimizing its retail footprint, and improving cost structure [5][9]. - The IPO of ARKO Petroleum Corp. was a significant milestone, providing greater transparency and unlocking value for shareholders [6][8]. - The dealerization strategy is a key lever for transformation, with 409 conversions completed and additional sites committed [10][11]. Management's Comments on Operating Environment and Future Outlook - Management noted that the consumer is still cautious, but execution across various initiatives has led to improved performance [5][15]. - The company expects 2026 Adjusted EBITDA to range between $245 million and $265 million, with same-store retail sales anticipated to improve several hundred basis points versus 2025 [26][27]. - The balance sheet remains strong, with $305 million in cash and a disciplined approach to capital allocation [25][24]. Other Important Information - The company is targeting 20 new NTI cardlock locations in 2026, with expected mid to high teens returns [14][56]. - Leadership changes include Gallagher Jeff as the new CFO, bringing extensive retail experience [16][18]. Q&A Session Summary Question: Merchandise sales improvement drivers - Management highlighted execution and marketing initiatives, including the Fueling America campaign, which increased loyalty transactions and market share in key categories [30][32]. Question: Remodel costs and opportunities - The cost of a major remodel is approximately $1 million, while a soft remodel could cost between $400,000 and $700,000 [36][37]. Question: Retail base post-dealerization - Most stores retained post-dealerization require less capital investment, focusing on food service enhancements rather than full remodels [39][40]. Question: Consumer pressure in the Midwest - Pressure in the Midwest continues, but overall spending has eased as fuel prices dropped below $2.50 [45][47]. Question: Promotions impact on margins - Promotions are vendor-supported and do not lower margins, instead driving customer traffic and increasing sales in higher-margin categories [49][50].

Core Insights - ARKO Corp. reported a net income of $1.9 million for Q4 2025, a significant improvement from a net loss of $2.3 million in the same quarter of the previous year. For the full year, net income rose by 9.1% to $22.7 million compared to $20.8 million in 2024 [4][6] - Adjusted EBITDA for Q4 2025 increased by 15.6% to $65.7 million, while for the full year, it was $248.7 million, slightly below the previous year's $248.9 million but above the initial guidance of $233.0 million to $253.0 million [4][6] - The company completed its IPO for ARKO Petroleum Corp., raising approximately $184 million to reduce debt and enhance financial flexibility [4][6] Financial Performance - Q4 2025 merchandise margin increased to 34.4% from 33.0% year-over-year, while for the full year, it rose to 33.7% from 32.8% [4][6] - Retail fuel margin for Q4 2025 was 44.5 cents per gallon, up from 38.7 cents per gallon in Q4 2024. For the full year, it increased to 42.8 cents per gallon from 39.6 cents per gallon [4][6] - The company reported a decrease in merchandise contribution for Q4 2025 by $18.6 million, or 13.8%, compared to Q4 2024, attributed to store closures and conversions [9][10] Operational Highlights - The company converted 62 retail stores to dealer locations in Q4 2025, totaling 256 conversions for the year, with an expectation to complete additional conversions by the end of 2026 [4][6] - The company introduced a new store format, fas craves, which has shown early success with double-digit increases in merchandise sales and fuel gallons [4][6] - The company plans to open approximately 25 remodels featuring the fas craves format and expand its network with new-to-industry retail stores [4][6] Liquidity and Capital Expenditures - As of December 31, 2025, the company's total liquidity was approximately $888 million, with $305 million in cash and cash equivalents and $583 million available under lines of credit [28] - Capital expenditures for Q4 2025 were $29.6 million, including investments in new retail stores and remodeling efforts [28] Dividend and Share Repurchase - The Board of Directors declared a quarterly dividend of $0.03 per share, to be paid on March 20, 2026 [5][29] - During Q4 2025, the company repurchased approximately 1.7 million shares for about $7.2 million, completing its current share repurchase program [30] Segment Performance - In the retail segment, fuel gallons sold decreased by 4.1% in Q4 2025 compared to Q4 2024, while same-store merchandise sales also saw a decline of 3.0% [7][11] - The wholesale segment experienced an increase in fuel gallons sold, with fuel contribution from fuel supply locations rising to $13.7 million in Q4 2025 [16][19] - The fleet fueling segment reported a slight increase in fuel contribution, with proprietary cardlock locations showing a fuel margin of 49.1 cents per gallon [24][27] Guidance - The company expects full-year 2026 Adjusted EBITDA to range between $245 million and $265 million, with an average retail fuel margin assumption of 41.5 to 43.5 cents per gallon [35]

Core Insights - ARKO Corp. has opened a new Handy Mart store in Garner, North Carolina, featuring its fas craves food concept, marking its second New-to-Industry (NTI) store and fifth fas craves location overall [7][8] - The fas craves concept aims to enhance the convenience retail experience by offering high-quality grab-and-go food options tailored for on-the-go customers [9][12] - The new store includes an expanded menu with various food items and beverages, including breakfast sandwiches, chicken wings, and customizable drinks like dirty soda [10][11] Company Overview - ARKO Corp. is a Fortune 500 company and one of the largest convenience store operators in the United States, based in Richmond, Virginia [16] - The company operates in four segments: retail, wholesale, fleet fueling, and GPM Petroleum, providing a wide range of products and services [16] Customer Engagement - The company has introduced a free loyalty program, fas REWARDS, which offers savings on fuel and in-store purchases, allowing members to save up to $2.50 per gallon [14][15] - The fas REWARDS program enhances customer experience by providing personalized offers and better pricing for members [15]

Core Insights - ARKO Corp. has opened its second fas craves location in Mechanicsville, Virginia, as part of its initiative to enhance customer experience through remodeled stores featuring a food-first concept [2][5] - The new store offers a menu of hot and cold grab-n-go items aimed at busy consumers, with a grand opening celebration planned from September 17–30, 2025 [3][6] Company Expansion - The Mechanicsville location opened on August 6, 2025, and follows the recent opening of a Handy Mart in Kinston, NC, on July 31, 2025, which also features the fas craves concept [6] - The fas craves menu includes items such as crispy chicken biscuits, zesty potato wedges, and various beverages, catering to diverse consumer preferences [4][6] Customer Engagement - To celebrate the opening, the store is offering exclusive food deals, including two crispy Ultimate Chicken Tenders and a small side of potato wedges for $4.99, and fountain drinks for 99 cents [6] - Customers can also participate in the Fueling America's Future promotion, which allows savings of up to $2 off per gallon of gas through the fas REWARDS loyalty program [7] Company Overview - ARKO Corp. is a Fortune 500 company and one of the largest convenience store operators in the U.S., owning 100% of GPM Investments, LLC [10] - The company operates in four segments: retail, wholesale, fleet fueling, and GPM Petroleum, providing a wide range of products including prepared foods, beverages, and fuel [10]

Core Insights - ARKO Corp. has opened a new Handy Mart location in Kinston, North Carolina, featuring the innovative fas craves branding and menu, marking a significant step in transforming the convenience store experience [2][5] Group 1: Store Opening and Concept - The new store is designed to cater to busy consumers with a menu of hot and cold grab-n-go items, providing options for breakfast, lunch, and snacks throughout the day [3] - The fas craves menu includes a variety of items such as crispy chicken biscuits, zesty potato wedges, mozzarella sticks, and beverages like nitro cold brew and iced teas [4] - The Kinston store officially opened on July 31, 2025, with a grand opening celebration scheduled for September 17–30, featuring modern design elements like digital menu boards and a contemporary interior [5][6] Group 2: Promotions and Customer Engagement - To celebrate the opening, customers can enjoy special food deals, including two Ultimate Chicken Tenders and a small side of potato wedges for $4.99, and fountain drinks for 99 cents [6] - The store also offers a Fueling America's Future promotion, allowing customers to save up to $2 off per gallon of gas by enrolling in the fas REWARDS loyalty program [7] Group 3: Company Overview - ARKO Corp. is a Fortune 500 company and one of the largest convenience store operators in the U.S., owning 100% of GPM Investments, LLC, and operating in four reportable segments: retail, wholesale, fleet fueling, and GPM Petroleum [9]

Core Insights - ARKO Corp. has opened its first food-focused remodeled store in Ashland, Virginia, featuring its new food brand, fas craves, aimed at enhancing the convenience store experience [1][4][6] Group 1: Store Launch and Concept - The Ashland location is part of a pilot program that includes eight sites, with six remodels and two new builds, focusing on a menu of hot and cold grab-n-go items [2] - The fas craves menu includes a variety of offerings such as crispy chicken biscuits, potato wedges, mozzarella sticks, and various beverages like nitro cold brew and frozen coffee [3] Group 2: Customer Experience and Design - The remodeled store features a customer-friendly layout, digital menu boards, and a contemporary design, all aimed at improving the shopping experience [4] - The store's product assortment is shaped by customer feedback, ensuring it meets the needs of today's on-the-go consumers [4] Group 3: Promotions and Future Plans - To celebrate the opening, special food deals are offered, including Ultimate Chicken Tenders and discounted drinks [5] - The fas craves brand will continue to expand alongside store remodels across ARKO's network, bringing new food options to a wider customer base [6]