Q2 2024 Arko Corp. Earnings Call Transcript
Key Points
- ARKO Corp (ARKO) reported adjusted EBITDA that exceeded their second quarter guidance, reflecting effective management of pricing and vendor relationships.
- The company achieved significant merchandise margin expansion, which helped offset a decline in same-store sales.
- ARKO Corp (ARKO) saw a 19% increase in same-store pizza sales and a 36% increase in units sold due to their new value-oriented pizza offering.
- The introduction of Nathan's Famous Hot Dogs in over 460 stores resulted in a 16% increase in same-store hot dog sales.
- The company is advancing a new store design pilot aimed at enhancing customer value and improving store operations, with plans for a region-wide rollout.
- ARKO Corp (ARKO) experienced lower same-store merchandise sales and retail volumes at the pump due to consumer pressure from inflation.
- Same-store transactions were down close to 8% for the quarter, reflecting a challenging external environment.
- Retail segment fuel gallons were down 3.4% compared to the previous year, indicating a decline in gallon demand.
- The company reported a decrease in adjusted EBITDA to $83.8 million from $86.2 million in the previous year.
- Same-store fuel gallon demand was down 6.6% for the quarter, highlighting ongoing challenges in fuel sales.
Good day, everyone, and welcome to today's Argo Corporation second quarter 2024 earnings. (Operator Instructions) Please note this call is being recorded. (Operator Instructions).
It is now my pleasure to turn the conference over to Senior Vice President of Capital Markets, Corporate Strategy and Investor Relations, Jordan Mann. Please go ahead.
Thank you. Good afternoon and welcome to Arko's second quarter 2024 earnings conference call and webcast.
On today's call are Arie Kotler, Chairman, President, and Chief Executive Officer; and Rob Giammatteo, Executive Vice President and Chief Financial Officer.
Our earnings press release and quarterly report on Form 10-Q for the second quarter of 2024, as filed with the SEC, are available on Arko's website at www.arkocorp.com.
During our call today, unless otherwise stated, management will compare results to the same period in 2023. Before we begin, please note that all
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