Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA) continues to make progress in the conversion of Delek convenience stores in the United States into OXXOs. It's currently focused on the Midland-Odessa and Lubbock metro areas in West Texas, “where we have converted 40 stores as of the end of the second quarter,” Martín Arias Yaniz, chief financial officer, said during the company’s second-quarter earnings call on Monday.
Monterrey, Mexico-based FEMSA purchased 249 stores from Brentwood, Tennessee-based Delek US in October 2024, marking its entrance into the United States. It started rebranding c-stores in February.
“Later in the year, we will begin the process in El Paso, applying the learnings from the earlier conversions,” Yaniz said. He added that this is “not just rebranding but also the addition of several hundred SKUs, including our Andatti coffee value proposition—and early results in terms of incremental sales are promising. We will continue to test the food concepts and to tweak the overall value proposition, and we will keep you updated on developments.”
FEMSA delivered mixed results in its second quarter, Jose Antonio Fernandez Carbajal, FEMSA’s CEO, said in a prepared statement.
“In our core operations in Mexico, we faced a challenging combination of a soft consumer environment and very adverse weather that put pressure on retail operations and beverage volumes,” he said. “On the positive side, several of our Proximity [Division] and beverage operations outside of Mexico delivered strong results, which combined with currency tailwinds, helped to mitigate the impact. The retail operations outside of Mexico provided encouraging signs that they are firing on all cylinders as they fine-tune their value propositions and increase their scale.”
- FEMSA is No. 33 on CSP’s 2025 Top 202 ranking of U.S. c-store chains by store count.
Total consolidated revenues increased 6.3% in the second quarter of 2025 compared to 2024’s second quarter, driven by growth across its business units outside of Mexico and reflecting the benefit from favorable exchange rate effects due to the depreciation of the Mexican peso against most of its foreign operating currencies, according to the report. After accounting for currency effects and M&A, revenues grew 2.2%.
In FEMSA’s Proximity Americas Division, which includes OXXO c-stores, total revenues grew 6.9% and income from operations decreased 2.8% versus 2024’s second quarter. The 6.9% increase in 2025’s second quarter reflects a 0.4% decline in same-store sales, offset by a 6.3% store expansion and currency tailwinds relative to the U.S. and South American currencies, as well as the consolidation of the U.S. operation into the results.
The decline in same-store sales was driven by an increase of 6.6% in average ticket and a decrease of 6.6% in store traffic.
On a comparable basis, total revenues increased 2.0%.
Gross profit reached 44.1% of total revenues, reflecting a stable margin for the Proximity Americas Division.
Income from operations declined by 2.8% compared to 2024’s second quarter and represented 9% of total revenues, which is a 90-basis point contraction.
In FEMSA Consolidated in the second quarter, gross profit increased 4.2% and income from operations increased 1.2%.
FEMSA, a beverage bottler and convenience-store retailer, has set its sights on becoming a major player in the United States after its acquisition of 249 Delek locations, officials said. The $385 million deal with Delek established FEMSA in the Southwest United States, primarily in Texas but also in New Mexico and Arkansas. The stores, previously operated under the DK Convenience brand, are transitioning to OXXO. The chain will retain a branded fuel partnership with Alon and DK Fuel, owned by Delek. FEMSA began operating the former Delek US stores on Oct. 1, 2024. FEMSA owns the world's largest Coke bottler, Coca-Cola Mexico. Its Proximity Americas Division operates the OXXO convenience-store chain and related retail formats in Mexico, Central America and South America, and now in North America. Its Proximity Europe Division operates Valora, its European retail c-store unit.
The company has roughly 24,600 locations in South America, including about 23,000 in Mexico, 550 in Brazil, 550 in Colombia, 200 in Peru and 300 in Chile.
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