Latest news with #cstore
Yahoo
10-05-2025
- Business
- Yahoo
3 Big Numbers: Examining Sunoco's push for Parkland
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 Corp. agreed to sell its business to Sunoco on Monday. This came after years of being pressured to make a change by shareholders and about two years after reportedly turning this particular suitor down. The announcement came on the same day as its latest earnings report and a day before major shareholder Simpson Oil expected to upend Parkland's board of directors. After Simpson unsuccessfully sought a court order to force the vote to go ahead, all eyes are now on the rescheduled company meeting, set for June 24, when shareholders can approve or reject Sunoco's offer. In this week's '3 Big Numbers,' we look at what that deal could mean by examining the buyout price, the number of retail locations involved and how Parkland has fared in the U.S. lately. The valuation of Sunoco's offer for Parkland. We're starting at the top: Sunoco has offered to buy Parkland in a deal worth $9.1 billion. And while the payout will be a boon for Parkland shareholders, Sunoco sees big gains as well, including an estimated $250 million in synergies in three years and 10% accretion to cash flow. Sunoco is no stranger to big M&A. In 2024, it bought fellow energy company NuStar Energy for over $7 billion. Like that deal, Sunoco's interest in Parkland is focused on the energy assets. Its announcement about the deal on Monday centered on energy infrastructure. Retail assets, on the other hand, weren't specifically highlighted. Which brings us to… The total number of retail locations involved in the Parkland deal. Sunoco may not be primarily focused on Parkland's retail arm, but those assets are still part of the package. According to a recent investor presentation, Parkland has close to 4,000 retail locations — 1,350 company-owned c-stores, 2,040 dealer locations and 315 M&M Food Stores globally. Out of those, 645 are in the U.S. Maybe Sunoco will keep those locations. It could be planning to follow BP, which over the past few years took full control of Thorntons and bought TravelCenters of America. Or maybe it'll divest the sites. It did sell more than 200 c-stores to 7-Eleven last year, after all. While Sunoco said the Parkland deal 'further diversifies Sunoco's portfolio and geographic footprint,' retailers will be keeping an eye on this deal to see if Sunoco decides to put those locations on the market. The year-over-year drop in Parkland's U.S. Q1 adjusted EBITDA. In the leadup to the acquisition, one of Simpson Oil's major complaints about Parkland was long-term underperformance. While Parkland pushed back, it repeatedly admitted to difficulties in the U.S. The company even said last year that it would be selling its Florida business, where about half of its c-stores in the U.S. are located. While Parkland cancelled its earnings call on Tuesday, it still released its Q1 earnings report. U.S. adjusted EBITDA came in at $16 million — down $15 million, or nearly half, from the $31 million it brought in this time last year. The decrease was driven by macroeconomic factors suppressing fuel demand and 'regulatory developments that also impacted Parkland's ability to capture supply optimization opportunities associated with moving refined product between Canada and the U.S.,' according to the earnings release. Recommended Reading Parkland to sell struggling Florida business
Yahoo
10-05-2025
- Business
- Yahoo
CrossAmerica sees strong merchandise sales as it approaches 400 c-stores
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. CrossAmerica Partners' retail division reported another strong quarter as the company continues to beef up its c-store footprint by converting dealer sites to company-owned locations, executives said during the company's first-quarter earnings call on Thursday. Despite a challenging first quarter, CrossAmerica's retail arm saw a 16% increase in gross profit during Q1 compared to the same period last year, according to the company's earnings report. Leadership credited this growth to its increased site count, which brought growth in merchandise and fuel sales. The Allentown, Pennsylvania-based company has quietly become one of the fastest-growing mid-size c-store retailers in the U.S. over the past year. According to its earnings report, it's only a few handful of stores away from reaching 400 company-operated locations. CrossAmerica has been moving full-speed ahead in building its c-store network since it acquired 59 locations from Applegreen in early 2024. Around that time, the company revealed plans to invest in its company-operated network, which it has done at some locations through adding new food options and various branding and fuel dispenser enhancements. As of Thursday, CrossAmerica had 376 company-operated c-stores in its network — 33 more than it had at the end of Q1 2024, according to its earnings report. Eleven of those 33 locations were added last quarter, President and CEO Charles Nifong said during the call. 'Based on these numbers, you can see that we were very active during the past 12 months with site conversions and executing on our strategy to increase our exposure to retail fuel margins and the retail business in general,' Nifong said. With the increased site count came increased merchandise profits, which surged 16% to about $25 million during the quarter, according to CrossAmerica's earnings report. Retail fuel margins also grew from $26 million to over $31 million — 'a highlight of the quarter,' Nifong said during the call. But even as CrossAmerica builds its c-store network, it's also stripping off some fat. The company sold seven sites for $8.6 million last quarter, building off a 2024 in which it divested 30 locations for over $36 million. Nifong said during the call that CrossAmerica will continue to look for opportunities to divest more non-core assets. 'We expect this momentum to continue through 2025 as this continues to be an area of focus and effort for us, and we expect to outperform our results for 2024 in this area,' he said. Recommended Reading Fueling Up: What are the fastest growing small and mid-size c-store chains in the US? Sign in to access your portfolio
