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Yahoo
11-07-2025
- Business
- Yahoo
3 Big Numbers: How is 7-Eleven's turnaround going?
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. Seven & i Holdings, the Japanese company that owns 7-Eleven, has been having a rough time lately. Concerns about the company's overall performance have led to disgruntled shareholders putting pressure on leaders to either make big changes or consider Alimentation Couche-Tard's bid to buy it out. Seven & i has taken some drastic steps this year, including naming its first non-Japanese CEO in Stephen Dacus and planning to take its North American arm, 7-Eleven Inc., public in 2026. Amid all this, the company has outlined a number of goals, including cutting costs and boosting foodservice, delivery and private label sales. In this week's '3 Big Numbers,' we look at three areas where 7-Eleven has made progress on its long-term plans in North America. 7-Eleven's Q1 operating income. Operating income for 7-Eleven grew from $201 million in the first quarter of fiscal year 2024 to $245 million in the same quarter of fiscal 2025, according to Seven & i's earnings presentation. That's more than a 20% increase. Challenges persisted, however, as same-store sales were down 1%. But the growth came largely from increased merchandise gross product margins and a small decrease in non-production costs, such as administrative salaries or rents. Let's set aside the margin increase for a moment and focus on the cost savings. 7-Eleven targeted $500 million in cost savings last year and managed to surpass that by cutting spending by $562 million during fiscal 2024. The focus on fiscal discipline is continuing into this year, with the company looking to make further cuts ahead of the proposed 2026 IPO. The number of 7-Eleven stores where food and beverage programs were modernized in Q1. 7-Eleven's foot traffic was down 6% in Q1 year over year, according to the earnings presentation. While that's never great, 7-Eleven was able to offset this drop in a couple ways. First, its average basket size in the first quarter was up 5.3%. Second, the company boosted its gross product margins by 1.1% in the quarter. While these margin gains came from multiple areas, they were mainly a result of the company's focus on growing proprietary products. It saw better margins from fresh food and private label goods. The company has rolled out modernized food and beverage programs to 435 sites so far in fiscal 2025. While the rollout is expected to slow for the rest of the year, 7-Eleven is expected to modernize the offering in another 1,000 stores. This modernization includes adding hot grab-and-go cases as well as racks of bakery items. Private label plus updated coffee programs and an expansion in the number of stores that include restaurants show that whether or not it works, 7-Eleven is remaining focused on improving its reputation among food-seeking patrons. The year-over-year increase in same-store delivery sales for 7-Eleven in Q1. 7-Eleven only added delivery to 74 stores during the quarter, but that's understandable when delivery is already available in over half of the company's locations. What's more interesting is the increasing use of delivery at stores that have already had it for a while. Same-store delivery sales — that is, sales growth among stores that already had delivery during fiscal Q1 in 2024 — were up over 18% year over year. The average basket size for these orders was more than $15. If 7-Eleven can keep growing these sales, or even just maintaining these basket sizes white the number of stores offering delivery grows, the incremental sales will have an even bigger impact on the bottom line. Recommended Reading 3 Big Numbers: Couche-Tard's foodservice journey Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-06-2025
- Business
- Yahoo
3 Big Numbers: Couche-Tard's foodservice journey
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. When Alimentation Couche-Tard reported its fiscal fourth quarter earnings on Thursday, observers were listening for any status updates on the company's bid for Seven & i Holdings, the parent of 7-Eleven and the largest convenience retailer in the world. The news on that front was lackluster, though it seems we might at least get a timeline before long. However, President and CEO Alex Miller also took some time during the company's latest earnings call to break down the growth in Couche-Tard's Fresh Food, Fast program, which has now been added to nearly 6,200 stores globally. In this week's '3 Big Numbers,' we look at what Couche-Tard's earnings tell us about its foodservice ambitions. Couche-Tard's U.S. service and merchandise gross margin in Q4. Couche-Tard reported U.S. service and merchandise gross margins of 33.9% for the fourth quarter. That's not bad, but why start here for a column about foodservice? Because it could have been worse if not for growth in Couche-Tard's fresh food sales. While the earnings report didn't break out exact contributions, it noted that 'improved food execution was offset by higher spoilage on tobacco products.' Although they didn't share specifics about food's contribution to the bottom line, Couche-Tard clearly is optimistic about the program. 'We are early innings, but I am extraordinarily pleased about the direction' of the food program, Miller said during the call. The increase in meal deals sold in the U.S. quarter over quarter. As part of expanding its Fresh Food, Fast program, Couche-Tard has also been making sure the program is affordable for price-conscious consumers. One major pillar of that plan is meal deals. Circle K unveiled an array of specials last year — $3 for either a roller grill hot dog or Taquito with a 2-ounce bag of Frito-Lay chips and a Pepsi; $4 for a sausage, egg and cheese breakfast sandwich with a hash brown and either a Monster energy drink or coffee; and $5 for two slices of pizza and a 20-ounce Pepsi. How has it been going? In its fiscal fourth quarter, the company sold more than 500,000 of these meals per week in the U.S. That's an increase of 35% over the previous quarter, Miller said during Thursday's earnings call. That result is all the more remarkable when you consider that Couche-Tard's U.S. same-store sales were actually down slightly on the quarter. The approximate number of weekly meal deals sold in North America so far in Q1. Half a million meal deals sold per week represents strong growth for Couche-Tard in this key area. But can the company keep that momentum up? So far, so good. While we obviously don't have the full first-quarter results just yet, Miller said that North American stores have seen around 800,000 meal deal sales per week so far in the new quarter. It's hard to say if growth in the U.S. is continuing, since that figure includes both Canadian and U.S. stores. But at the very least, it shows that demand continues to be strong for these value offerings. Recommended Reading Couche-Tard CEO says Seven & i talks could finalize in the near future Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-06-2025
- Business
- Yahoo
3 Big Numbers: The many faces of c-store growth
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. Growth has been a hot topic for the convenience industry in 2025. From new stores and M&A to expanded technology and loyalty programs, c-store retailers are taking steps to expand their markets. Some companies are trying to make big moves — we're looking at you, Alimentation Couche-Tard — while others are moving more quietly and methodically. In this week's '3 Big Numbers,' we look at expansion plans from Casey's General Stores and Minuteman Food Mart as well as Sunoco's possible acquisition of Parkland Corp. The number of stores Casey's expects to add in fiscal 2026. As part of its fourth quarter and full year earnings announcement this week, Casey's disclosed that it had opened or acquired a record 270 stores in the past 12 months and expects to open about 80 during the upcoming fiscal year. After the massive acquisition of CEFCO Convenience Stores' 198 sites in fiscal 2025, it seems that Casey's is looking to scale back this year, with an emphasis on building its own stores. 'We can lean heavier on the organic side, because we have a pretty developed land bank that gives us that optionality either way,' Casey's President and CEO Darren Rebelez said during the earnings call. Sure, after 270 locations in one year, 80 might seem like small potatoes. But it's worth remembering that if those stores were their own banner instead of part of Casey's, they would be one of the 100 largest c-store chains in the U.S. The number of months between Sunoco's first bid and final deal for Parkland. While many eyes were on the will-they-won't-they saga between Couche-Tard and 7-Eleven's parent company, Seven & i, a different courtship was going on in the background. Sunoco, best known as a major fuel brand in the U.S., announced last month that it had reached a $9.1 billion deal to acquire Parkland Corp., including more than 640 retail sites. A final decision will come on June 24, when Parkland shareholders vote. It turns out Sunoco has been seeking this acquisition for quite a while, according to a recent timeline released by the two companies. Sunoco first made a $38.50 per share bid for the Canadian fuel and retail company in July 2023 — a bid that Parkland turned down for undervaluing its business. Sunoco tried again later that year with an enhanced bid, but that was also nixed. Now, nearly two years later, Sunoco may finally get what it wants. Then we'll just have to see if it sells the bulk of those c-stores, as it's done in the past. The max number of sites Minuteman Food Mart may introduce with its new branding in the coming year. While Casey's is aiming for 80 new stores and Sunoco may pick up over 600, not all growth that happens is at that scale. Minuteman plans to open between five and 10 new stores in the next year. Given that it currently operates 62 locations, 10 new sites would mean an increase of over 16%. That's nothing to sneeze at. Perhaps more interesting, the company is embracing a new logo at these sites. Minuteman was looking for a way to encapsulate what it stood for — something that could be iconically connected to the brand, the way the swoosh is for Nike or Buc-ee the Beaver is for Buc-ee's. Brand recognition for its new stopwatch-themed icon isn't on par with those iconic logos yet, but time will tell. Recommended Reading Casey's to debut 80 new stores during fiscal 2026 Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
17-05-2025
- Business
- Yahoo
3 Big Numbers: Taking a closer look at new store designs
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. Convenience retailers regularly innovate their store designs. From 7-Eleven planning to implement a new food-forward format at hundreds of stores to local operators that tailor their corner stores to what the neighborhood needs, upgrading both the look and offer inside helps keep up with customer expectations and turn stores into destinations. In this week's '3 Big Numbers,' we look at the investment Arko Corp. is making in a food-focused format, the size of Kent Kwik's latest location and the operational impact of Murphy USA's updated store design. The upper end of what Arko is spending on its new locations. Arko has been teasing its new food-focused convenience stores since last summer. In its latest earnings report, leaders shared that construction on the first of these seven sites has now begun. These locations will feature Arko's new proprietary foodservice program, Fas Craves, which will include hot and cold grab-and-go foods, baked goods, pizza, roller grill dogs and other fresh-prepared items, Chairman, President and CEO Arie Kotler said during the company's earnings call last week. Arko isn't skimping on these projects. The company expects to spend between $700,000 and $1.1 million on renovating the sites to accommodate Fas Craves, Kotler noted in the call. The square footage of Kent Kwik's upcoming food-focused store. Kent Kwik, which is owned by The Kent Companies, is testing out a new food-focused format, with its latest iteration expected to open next month, according to its website. The location, which is being built in Midland, Texas, will feature a 6,200-square-foot store and a made-to-order kitchen. The site has more to offer than just food. It will also have a drive-thru, the company's second-ever Kent Dog Wash and a two-bay car wash, according to Kent Kwik's website. Local reporting even notes that a Kent Lube Fast Oil Change Center will be coming to the site. The difference in merchandise margin between Murphy USA's new and old designs. Murphy USA has been operating its new stores in some markets for a while. Anyone interested can even take a peek inside via our coverage of its recently remodeled site near El Paso, Texas. But thanks to a recent earnings call, we can also look inside the books for these stores, too. According to company data, these revamped designs outperform older stores both inside and out. In the forecourt, stores with the new design are seeing about 20% more fuel gallons sold, CFO Gallagher Jeff said during the call. The difference is even more stark inside, with a roughly 40% increase in merchandise margins. 'These new stores are driving value and winning new customers, which is while we're aggressively working on our new store pipeline,' said Jeff. Recommended Reading Murphy USA's new store design was the star of Q1
Yahoo
26-04-2025
- Business
- Yahoo
3 Big Numbers: Examining major changes for QuikTrip, Walmart and 7-Eleven
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. Parkland's tumultuous 2025 got more contentious this month as its largest shareholder not only put forward a competing set of board nominees, but also said quickly replacing CEO Bob Espey is one of its top priorities. Espey is stepping down by the end of the year, but his tenure could be cut much shorter if Simpson's nominees win. Whoever's in charge for the rest of the year will need to handle not just the search for a new CEO, but also an extensive strategic review, which could result in a sale of the company. We've covered that kerfuffle extensively. And while that's been going on, several larger retailers shared their own big plans for growth or changes in leadership. In today's '3 Big Numbers,' we look at QuikTrip adding a new state to its footprint, Walmart planning big inroads into the c-store space and Seven & i's board leadership succession plan. The total number of QuikTrip locations as of its debut in Indiana. There's been plenty of talk about the expansion plans from Wawa, Buc-ee's and Casey's General Stores. But QuikTrip has been quietly expanding its reach as well. As of its first opening in Indiana this month, there were 1,149 QuikTrip locations in the U.S. That's an increase of more than 10% from a little over a year ago, according to NACS and NielsenIQ data. From 2023 to 2024, QuikTrip's footprint grew nearly 7%. Besides Indiana, QuikTrip's nationwide expansion over the past couple of years has included opening its first convenience stores in Ohio and Nevada in 2024, as well as upcoming debuts in Kentucky, Florida and Utah. The expected growth of Walmart's c-store footprint from December 2024 to the end of 2025. QuikTrip managed about 10% store count growth in over a year, which is phenomenal. But Walmart is no slouch, either. In December, Walmart opened its 400th fuel station. By the end of this year, it hopes to have about 450, for a gain of 12.5%. There are a few reasons that a c-store boom from Walmart might be concerning for other convenience retailers. First, the big-box retailer has nearly unparalleled buying and bargaining power. That allows it to offer the same everyday low prices inside its convenience stores as it does in its big-box locations. Walmart also has an advantage when it comes to location. While it may need local approvals to put in fuel tanks or for other changes, it doesn't need to find and purchase sites. With more than 4,600 Walmarts in the U.S., the retailer has plenty of real estate already at its disposal where it could add c-stores. The number of years that Seven & i's new executive chairman, Junro Ito, has worked for the company. Seven & i, parent company of 7-Eleven, has had a wild 2025 so far. It came into the year weighing a takeover bid from Alimentation Couche-Tard, parent of Circle K. Since January, it has also announced a CEO shift, the planned IPO of its North American operations and a veritable conga line of board changes. Among these changes is vice president and representative director Junro Ito taking on the role of executive chairman. In that position, Ito 'will focus on fostering relationships with broader stakeholders, including employees and franchisees,' as well as working closely with incoming CEO Stephen Dacus, according to a letter from Seven & i on the change. Ito is new in the position but has a long history with Seven & i. He's a member of the founding family and has worked in and around 7-Eleven since 1990, according to his bio on the company website. While much of his career has been with 7-Eleven Japan, he's been a director of Seven & i since 2009. All that institutional knowledge should be helpful as Seven & i's first non-Japanese CEO takes the wheel. Recommended Reading QuikTrip opens first Indiana store Sign in to access your portfolio
