Murphy USA’s net income was $144.8 million for the second quarter of 2024, the company announced on an earnings call. This number is up from the second quarter a year ago, which saw net income of $132.8 million.
Murphy USA reported that its total fuel contribution was 31.7 cpg, compared to 29.5 cpg in Q2 2023.
Merchandise contribution dollars for Q2 2024 increased 4.7% to $216.5 million on average unit margins of 20.0%, the company reported, compared to Q2 2023 contribution dollars of $206.8 million on unit margins of 19.7%.
“Murphy USA’s advantaged business model delivered strong second quarter results led by continued outperformance in the core non-discretionary fuel and tobacco categories,” said Murphy USA’s President and CEO Andrew Clyde. “Record second quarter retail fuel contribution dollars helped make up for a slow start in the first quarter and clearly demonstrated that structural margin dynamics remain intact, despite limited volatility versus prior years.”
Clyde shared that “nicotine continues to gain share, while center-of-store results remain mixed, particularly in the Northeast where inflation and other drivers are impacting traffic at QuickChek, more than offsetting the benefits of our initiatives to drive further value in the business. ... Despite these headwinds, customer spend on non-discretionary categories remains robust in our core footprint.”
“Current construction activity is accelerating with 22 raze and rebuilds underway as well as nine new-to-industry stores, including three new QuickChek branded stores. Expected new construction starts in May and June is on track to deliver the 30 to 35 new stores this year, which is in line with our guidance, and a projected increase versus the 28 new stores that were opened last year,” said Galagher Jeff, the executive vice president and CFO at Murphy’s.
Murphy USA opened three new stores in Q2, including one QuickChek store, and closed three QuickChek stores that did not have a fuel offer. Since quarter end, the company opened one new Murphy banner store with two more scheduled to open in the next few weeks, said Jeff.
Murphy USA operates c-stores in 27 states across the United States. It acquired the QuickChek brand in 2021.
Last month, QuickChek was named one of the “Best Places to Work in New Jersey” and one of the “Best Companies to Work for in New York” for 2024.