WESTLAKE, Ohio — TravelCenters of America Inc. (TA) revealed in its financial results that while it had a net income improvement of 121% ($64 million), total fuel sales decreased.
- TravelCenters of America is No.28 on CSP’s 2022 Top 202 ranking of U.S. convenience-store chains by company-owned store count.
“Investing in growth remains a key pillar in our transformation plan, with a focus on site refreshes, technology improvements and network expansion,” said Jonathan Pertchik, CEO of TravelCenters of America, Westlake, Ohio. “While results benefited from favorable fuel purchasing conditions created by extraordinary volatility, a continued focus on operational excellence and investing in growth were also instrumental in driving a very strong quarter once again.”
Fuel gross margins increased by 56% over the prior year to $156,631 and total fuel sales volume decreased 1.6% to $583,630. This came from a 0.3% decrease in diesel fuel to $511,209 as well as a 10.7% decrease in gasoline to $63,111 due to increases in pump pricing, Pertchik said.
To combat the decrease in gas and diesel, TA plans to increase prices, especially because the company expects higher-than-typical fuel margins to persist through the remainder of this year.
Store and retail service revenues have increased 3.1% to $200,424 while restaurant revenues increased 8.4% to $86,626. TA said it improved its customer loyalty program, food operations and merchandising.
Expansion is also at the forefront of TA’s initiatives.
TravelCenters reported that since 2020, it has entered into franchise agreements covering nearly 50 travel centers to be operated under its travel center brand names. Five of these franchised travel centers began operations during 2020, two began operations during 2021 and one began operations during second-quarter 2022. TA expects the remaining 42 to all open by third-quarter 2024.
TravelCenters of America, a publicly traded, full-service travel center network, has more than 275 locations in 44 states and Canada, principally under the TA, Petro Stopping Centers and TA Express brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants (QSR), travel stores, car and truck parking and other services. The company operates more than 600 full-service and quick-service restaurants and nine proprietary brands, including Iron Skillet and Country Pride.
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