ARKO Corp., a leading independent convenience store operator based in Richmond, Virginia, reported its financial results for the fiscal year ending December 31, 2024, in its recent 10-K filing. The company generated total revenues of approximately $8.73 billion, a decrease of 7.2% from $9.41 billion in 2023. This decline was primarily driven by an 8.1% drop in fuel revenue, which totaled $6.86 billion, attributed to lower average fuel prices and reduced sales volumes. Merchandise revenue also fell by 3.8% to $1.77 billion, reflecting a decrease in same-store sales and the impact of underperforming retail locations that were closed or converted to dealer sites.
In terms of profitability, ARKO Corp. reported a net income of $20.8 million, down from $34.6 million in the previous year. The operating income for the year was $94.0 million, compared to $118.0 million in 2023. The decrease in operating income was largely due to lower contributions from both fuel and merchandise sales, as well as the elimination of skill gaming machine income in Virginia. The company’s adjusted EBITDA for 2024 was approximately $248.9 million, a decline from $276.3 million in 2023.
Strategically, ARKO Corp. has been active in expanding its footprint through acquisitions and operational transformations. The company completed several acquisitions in 2023, including the purchase of 135 convenience stores from Transit Energy Group and 24 Uncle’s convenience stores from WTG Fuels Holdings. In 2024, ARKO acquired 21 SpeedyQ Markets, further enhancing its market presence. Additionally, the company is implementing a multi-year Transformation Plan, which includes converting retail stores to dealer sites to optimize profitability and focus investments on higher-performing locations. As of December 31, 2024, ARKO operated 1,389 retail convenience stores and supplied fuel to 1,922 dealer locations.
Operationally, ARKO Corp. reported a total employee headcount of 11,772 as of the end of 2024, with approximately 10,328 employees working in stores. The company has also seen growth in its loyalty program, with 2.3 million enrolled members in the fas REWARDS® program, representing a 13% increase year-over-year. The company’s geographic reach spans over 30 states, and it continues to focus on enhancing its foodservice offerings, which are a key strategic priority.
Looking ahead, ARKO Corp. anticipates continued challenges in the retail environment, particularly due to inflationary pressures and competitive market conditions. The company plans to focus on executing its Transformation Plan, enhancing its foodservice capabilities, and pursuing further acquisitions to drive growth. The management remains optimistic about leveraging its scale and operational efficiencies to improve profitability and market share in the convenience store sector.
About ARKO Corp.
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