CHICAGO — The dynamics of convenience-store chain growth pivot around many factors, including interest rates, fuel profitability and c-store multiples. Many of those critical factors currently favor retailers. Here’s a look at where the stats stand.
High Multiples
Three of the larger acquisitions in 2018—two from EG Group and the BP-ArcLight deal for Thorntons—drew high multiples, averaging 11.3X among the three.
Sources: NACS, Nomura
Interest Rates
The cost of money is hovering at record lows, with U.S. Treasury bills at 2% to 3%. The average rate just prior to the 2008-2009 recession was about 5%.
Source: U.S. Department of the Treasury
Building Costs
Construction costs for new builds in urban locations skyrocketed by 44.5% in four years, according to NACS.
Source: NACS CSX data
Fuel Numbers
While fuel volumes were down in 2018, margins and sales—along with gas prices—were up.
Source: NACS CSX data
Click here to see the complete Top 202 report.
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