SANFORD, N.C. -- The Pantry, one of the industry's best recognized piranhas with an insatiable appetite for acquisition in the country's southeastern tier, is positioning itself for additional purchases that could catapult its store count to 2,000 by the end of the decade.
With roughly 1,450 stores tucked in its portfolio, The Pantry has promoted marketing vice president Dave Zaborski to senior vice president of operations and Mark Tate to marketing director. The company also is creating a two-zone operational infrastructure, naming Joe Krol group vice [image-nocss] president of southern operations and Brad Williams group vice president of northern operations.
We're very optimistic about the future of this industry, company CEO and President Pete Sodini told CSP Daily News. I'm looking to grow substantially. You can say that we're retooling for what is the third time to reach 2,500 stores.
Both Zaborski and Tate should know something about acquisitions. They are among the scores of managers who worked for chains acquired by The Pantry since the late 1990s. Zaborski worked for the Handy Way chain then owned by the venerable Miller Enterprises, while Tate served at the Fast Lane stores formerly owned by RR Morrison & Son.
The Pantry, one of the few public companies in the convenience industry, has demonstrated a voracious appetite of late. In just the past 60 days it has acquired the c-store assets of Lee-Moore Oil and Waring Oil Co., two reputable jobber operations.
Other deals of the past year include 13 Speedmart Food Stores from Chatham Oil Co. And last February in what Sodini described as the highest-quality acquisition we've made, The Pantry picked up the 53-store Cowboys Food Mart chain from Rome, Ga.-based D&D Oil Co.
The Pantry is enjoying record earnings and a 52-week high on Wall Street, with shares selling Thursday morning at $57.20, more than double its one-year low.
With our growth, we're always looking to grow internally as well as externally, Sodini said of the senior executive promotions. We're very bullish about the market. We see good opportunities to grow.
Meanwhile, Sanford, N.C.-based The Pantry has announced preliminary financial results for its first fiscal quarter ended Dec. 29, 2005.
Subject to final adjustments, it expects to report earnings per share for the quarter in a range between $1.43 and $1.48, more than double its earnings per share of 59 cents in the corresponding period last year. The estimated results for the first quarter of fiscal 2006 include approximately 5 cents per share in expenses related to the company's recent refinancing of its credit facilities.
Profitability in our gasoline operations benefited from unusually favorable market conditions that carried over from the previous quarter into October and November, Sodini said. We also benefited from solid gains in comparable store merchandise sales and gasoline gallons sold which were both up nearly 5%. Reflecting the strength in our first quarter, we now expect earnings per share, excluding any pending or future acquisitions, for our full fiscal year of between $2.95 and $3.05, an increase from our previous guidance range of $2.80 to $2.90. Included in this guidance is our expectation that gasoline margins will be more in line with historical levels going forward with normal seasonal weakness in our second quarter.
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.