Convenience-store chain Murphy USA saw lower net income this quarter than it did compared to third-quarter 2022, but President and CEO Andrew Clyde said he was pleased with the third-quarter 2023 performance “as we comp last year's extraordinary earnings.”
“On a two-year stack basis, Murphy USA demonstrated industry leading fuel volume and tobacco gains, while current year fuel margins highlight the sustainability of elevated industry margins in a less volatile setting,” Clyde said. “Momentum carried through to October especially at QuickChek where new promotions and initiatives have contributed to record food and beverage profits.”
Net income was $167.7 million for third-quarter 2023 compared to net income of $219.5 million in second-quarter 2022, Murphy USA announced Wednesday in an earnings report, ahead of its investors call Thursday.
Total fuel retail gallons decreased 2.5% in the third quarter compared to the year prior, while volumes on a same-store sales basis declined 4.7%. Merchandise contribution dollars for third-quarter 2022 increased 3% to $211.8 million on average unit margins of 20.1%, compared to the priory-year quarter contribution dollars of $205.7 million, Murphy USA said.
Net income and adjusted EBITDA, which was $306 million for the three months ending on Sept. 30, were lower versus the prior-year period due to lower total fuel contribution and increases in store operating expenses and general administrative expenses, which were partially offset by higher overall merchandise contribution margins and lower payment fees, the El Dorado, Arkansas-based company said.
Murphy USA’s total store count as of Sept. 30 was 1,568 c-stores, which includes the Murphy USA, Murphy Express and QuickChek brands. It opened eight raze-and-rebuild stores in the third quarter.
Murphy USA operates gas stations in 27 states primarily in the Southwest, Southeast, Midwest and Northeast. Most of Murphy USA's sites are located adjacent to Walmart stores.
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