Parkland Corp. plans to spend about $923.9 million (U.S. dollars) over the course of the next three years to support its organic growth initiatives, including adding 100 convenience stores via building, acquiring or razing and rebuilding.
The Calgary, Alberta-based fuel marketer and convenience retailer shared this Tuesday as part of its 2025 guidance.
“We enter 2025 confident in our strategy and plan to achieve our 2028 growth ambitions,” said Bob Espey, president and CEO of Parkland. “Next year, despite anticipating lower than mid-cycle refining margins, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from our retail and commercial businesses are expected to increase by approximately 5%, in line with our growth commitments. The Parkland team will continue to focus on growing our customer volumes while achieving the synergies and efficiencies from previous acquisitions.”
- Parkland Corp. is No. 38 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
Parkland has earmarked $3.6 billion from 2025 through 2028 to go toward share buybacks and inorganic growth opportunities (about 50%), leaving about 25% to be directed toward dividends and 25% toward organic growth initiatives, it said in its 2025 guidance.
The breakdown of those organic growth initiatives, which total about $923.9 million, includes:
- Strengthening its retail customer advantage, focused on growing market share and loyalty while enhancing brand recognition through:
- Building scale and density with more than 100 new-to-industry sites, raze-and-rebuilds or acquisitions.
- Completing more than 175 On the Run conversions with differentiated food offers.
- Installing approximately 1,800 additional electric vehicle (EV)-charging ports.
Part of the budget will also be allocated toward strengthening its commercial business through cardlock expansion and making investments in enhancing the company’s supply advantage, Parkland said.
It was not immediately clear where the new stores would be located. Parkland has operations in 26 countries across the Americas. It’s the parent company of Parkland USA, which has more than 200 company-owned convenience stores in the United States under brands including On the Run. However, it is trying to sell about 100 of those U.S. retail locations in Florida.
Parkland also shared in its 2025 guidance an adjusted EBITDA goal of $1,279.5 million to $1,492.7 million, including a refining adjusted EBITDA of about $213.2 million. Its 2028 ambition is adjusted EBITDA of about $1.8 billion, driven by organic growth, supply optimization, cost efficiencies and returning to mid-cycle refining margins, the company said.
The guidance comes after a transformative year for Parkland Corp. In September, it said it would sell its struggling Florida retail and commercial businesses. It combined its commercial and retail operations in the United States and international regions under Donna Sanker in July. And in 2025 it expects to complete its previously announced divestment program, which it expects to exceed $355.4 million in sales of noncore assets.
The company has also laid off more than 300 staff members since January 2023, it said in its second-quarter 2024 earnings report. And in an unrelated move, it also announced it would outsource its IT roles to Accenture.
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