As EG Group takes a step back from its international operations, the convenience-store chain is focused on growth in the U.S. with Cumberland Farms rebrands, its SmartRewards loyalty program and foodservice expansion, the company said during its third-quarter earnings call Wednesday.
In the U.S., grocery and merchandise represent the largest share of gross profit for the third quarter at EG Group, at 51%, or $222 million. Fuel contributed 40%, while foodservice accounted for a smaller portion at 3%, and other streams made up the remaining 6%.
Overall, the distribution suggests a business heavily anchored in retail merchandise and fuel sales, with modest contributions from ancillary service areas. However, grocery and merchandise, foodservice and fuel gross profit all were down from the third quarter of 2024.
- EG America is No. 6 on CSP’s 2025 Top 202 ranking of U.S. c-store chains by store count.
The Group delivered EBITDA of $286 million for the third quarter of 2025, representing a marginal year-on-year decline of 1% on a same-store basis. The U.S. business experienced a challenging quarter due to compressed fuel margins, though this was partially offset by solid performance in Europe and effective cost control, according to EG Group. Overall, year-to-date costs have been reduced by 3%, supporting profitability despite market pressures.
"We are pleased to have delivered a consistent year-on-year performance in the quarter, despite highly competitive market conditions and a cautious consumer environment,” Russ Colaco, CEO of EG Group, said. “We also maintained our focus on progressing our strategic priority of building a more focused business centered on our core U.S. and European markets. Our non-fuel businesses performed well during the quarter, with foodservice gross profit up 7% and grocery and merchandise revenues growing across Europe, offsetting competitive fuel market dynamics in the U.S.”
In addition to its results, EG Group announced the appointment of Mike Leon as chief accounting officer and Bob Swan as chief human resource officer. They will join the company on Jan. 5, 2026.
Rebrands
In August, EG Group took operational control of nine Neon leasehold sites across Massachusetts and Rhode Island. These sites have been fully rebranded to Cumberland Farms stores. Krispy Krunchy Chicken quick-service restaurants will roll out at eight of the stores by year-end.
EG Group has 110 Tom Thumb locations in Florida with 35 locations already rebranded to Cumberland Farms. The remaining 75 locations are to be rebranded by the first quarter of 2027, supported by an average investment of about $400,000 per site. The refresh includes expanded food and beverage offerings, with Krispy Krunchy Chicken introduced where suitable.
EG Group has also entered into an agreement with a fuel distribution supplier to rebrand and upgrade 102 Loaf 'N Jug sites in Colorado to Cumberland Farms with Shell branded gas. This initiative is supported by about $350,000 per site from EG Group’s partner and about $260,000 from EG Group. Forty-three sites will convert in 2026, with full rollout by the end of 2027. Some of these locations will also feature Krispy Krunchy Chicken.
The total U.S. store count as of Sept. 30 is 1,464.
Loyalty
Since June, year-over-year grocery and merchandise sales have delivered positive growth. This stabilization occurred in tandem with EG Group’s SmartRewards launch earlier this year. Loyalty participation and basket size both increased following the loyalty launch, according to EG Group.
The program now has more than 3.6 million members and is increasing visit frequency and generating data, the company said. The company is aiming for 4 million members by the end of the year.
The loyalty program has resulted in a 4% increase in basket size, a 10% increase in average fuel gallons and a 53% increase in the average tobacco basket size.
EG Group also launched its personalization plus (P+) program in June to the Cumberland banner and in October to the rest of the banners.
P+ enables customers to stack everyday savings with tailored incentives through SmartRewards, driving higher frequency, larger baskets and stronger loyalty, EG Group said.
Foodservice
EG Group is accelerating the rollout of Krispy Krunchy Chicken across 500 stores in the U.S. network. Four stores are open now, and 145 are expected to open by the end of 2026.
Its initial results show that at sites with Krispy Krunchy Chicken, there are early signs of fuel and inside sales uplift: an additional 10-15% in fuel sales year over year and an in-store sales increase of 5-10% year-over-year.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.