Company News

Murphy USA’s Third-Quarter 2024 Net Income Declines Compared to Prior Year

Merchandise margin dollars were up, reflecting strength in nicotine and non-nicotine categories, c-store chain reports
Murphy Express convenience store
Photograph: Shutterstock

Murphy USA reported net income and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) declined for third-quarter 2024 compared to the prior-year quarter due primarily to lower total fuel contribution and higher store operating expenses. This was partially offset by higher retail fuel volumes and higher overall merchandise contribution, the convenience-store retailer said Wednesday in its earnings report

Net income was $149.2 million in third-quarter 2024 compared to net income of $167.7 million in the third-quarter 2023, the company said. Adjusted EBITDA was $285.6 million in third-quarter 2024 versus $306 million in third-quarter 2023. 

  • Murphy USA is No. 4 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.

“Strength in our core categories continued to drive Murphy USA’s advantaged business model in the third quarter,” said President and CEO Andrew Clyde. “Retail fuel margins were over 3 [cents per gallon] higher than 2023, and per store volumes grew 1.1%, as pricing dynamics continue to reflect higher industry breakeven margins.

Other highlights include:

  • Total fuel contribution for third-quarter 2024 was 32.5 CPG, compared to 34.5 CPG in the prior-year quarter. 
  • Total retail gallons increased 2%, and volume on a same-store sales basis increased 0.5% in third-quarter 2024 compared to third-quarter 2023. 
  • Merchandise contribution dollars for the quarter increased 2.4% to $216.8 million on average unit margins of 20%. That’s compared to third-quarter 2023 contribution dollars of $211.8 million on unit margins of 20.1%. 

“Within the Murphy branded stores, total merchandise margin dollars were up 5.9% reflecting strength in both nicotine and non-nicotine categories while there were continued headwinds in the Northeast QuickChek markets,” Clyde said. “As our innovation and business improvement initiatives take hold, our network grows, and we continue to take share on key categories, we are well-positioned to compete and win with our value-conscious customers. We are accelerating our new-store build program in 2024 and 2025, which is generating strong returns and remains the primary growth driver of the business over the next five to 10 years.”

Murphy USA has a total of 1,740 stores under the Murphy USA/Express (1,586 stores) and QuickChek (154 stores) brands as of Sept. 30. It opened four new-to-industry Murphy USA/Express stores in third-quarter 2024, completed 16 raze-and-rebuilds and had 47 new stores under construction. QuickChek had three stores under construction at the end of the third quarter. 

El Dorado, Arkansas-based Murphy USA operates one of the nation’s largest convenience-store chains, operating in 27 states, located primarily in the Southwest, Southeast, Midwest and Northeast, the majority of which are next to Walmart Supercenters. It acquired the QuickChek brand in January 2021
 

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