ARKO Corp. - ARKO STOCK NEWS

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ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC, and stands as one of the largest operators of convenience stores and fuel wholesalers in the United States. Based in Richmond, VA, ARKO Corp. operates under a family of recognizable community brands, offering a wide range of products including prepared foods, snacks, candy, beverages, and popular quick-serve restaurant brands. The company also features the high-value fas REWARDS® loyalty program, which provides exclusive savings on merchandise and fuel.

ARKO Corp. operates in four primary segments: Retail, which includes convenience stores selling merchandise and fuel; Wholesale, which supplies fuel to independent dealers and consignment agents; GPM Petroleum, responsible for selling and supplying fuel while charging a fixed fee, mainly to fleet fueling sites; and Fleet Fueling, which includes the operation of proprietary and third-party cardlock locations and issues proprietary fuel cards that offer access to a network of fueling sites.

Recently, ARKO announced its financial results for the fourth quarter and full year of 2023. Over the past three years, the company has significantly expanded its geographic footprint through acquisitions, delivering approximately $166 million in net income and about $850 million in cumulative adjusted EBITDA. For the full year of 2023, ARKO reported $290.4 million in adjusted EBITDA, holding the performance within 3.5% of 2022 levels despite a 3.4% decline in national fuel gallon demand.

Notable highlights from the year include a 2.5% increase in same store merchandise sales excluding cigarettes and an overall increase of 16.7% in total merchandise contribution. The company's focus on improving customer experience and store productivity remains central to its growth strategy. ARKO also announced a new investor day planned for later in the year to reveal its multi-year roadmap for enhancing organic performance and driving shareholder value.

Furthermore, ARKO continues to invest in its loyalty program and its core destination categories. The company’s fas REWARDS® loyalty program has been a pivotal part of its strategy, offering customers significant savings and exceptional value.

As of the end of 2023, ARKO had a total liquidity of approximately $831 million. The company's capital expenditures for the year were around $111.2 million, which include purchases of properties, upgrades to fuel dispensers, and other store investments. Additionally, ARKO has amended its program agreement with Oak Street, extending the term and increasing the capacity to $1.5 billion, allowing for further strategic investments.

Looking ahead, ARKO aims to focus more on organic growth and will continue leveraging its significant acquisitions to enhance its market presence and operational efficiency.