Arko(NASDAQ) ARKO

Arko Corp. runs many convenience stores. It sells fuel and snacks across the United States. The company also supplies gasoline to other businesses.

Fuel, Food, and Convenience

• Retail Convenience Stores: Operates 1,057 sites selling fuel, beverages, snacks, and prepared foods; generated $1.2 billion in revenue in the three months ended June 30, 2026.
• Wholesale Fuel Distribution: Supplies fuel to 2,129 dealer sites using cost-plus models or consignment, where Arko owns the inventory; generated $935.1 million in revenue in the three-month period ended June 30, 2026.
• Fleet Fueling Services: Provides fuel at 290 unstaffed cardlock locations for commercial customers using proprietary cards; generated $178.2 million in revenue in the three-month period ended June 30, 2026.
• Logistics and GPMP: Distributes fuel to internal segments through its GPM Petroleum division and charges an inter-segment fixed margin.

Strategic Shifts and Growth

• Launched the fas craves flagship format in June 2025 with modernized interiors to focus on food service.
• Completed 26 acquisitions between 2013 and June 30, 2026.
• Converted 471 retail stores to dealer locations to maximize income from fuel supply agreements and rent.
• Opened three new-to-industry retail stores during the first half of 2026.
• Reached 2.6 million loyalty program members by June 30, 2026, which is up 9.9% year over year.

Flexible Strategy and Regional Strength

Arko utilizes a flexible business model that converts retail locations into wholesale dealer sites to maximize income from fuel and rent. It operates under more than 25 regional brands to maintain local customer loyalty while centralizing its buying and marketing power.

The Business by the Numbers

• Fuel revenue was $2.0 billion in the three months ended June 30, 2026, up 25.3% year over year.
• Merchandise margin rose to 34.7% in the three months ended June 30, 2026, from 33.6% in the same period of 2025.
• Net income was $9.4 million in the three months ended June 30, 2026.
• The company reached a liquidity position of approximately $1.0 billion as of June 30, 2026.
• Market cap was $356.3 million in Q2 2026, down 26.1% year over year.

Bottom Line

Arko has evolved from a pure retail operator to a diversified fuel and merchandise provider. Its strategy focuses on site conversion and food service expansion to navigate shifting market demands.