Arko Corp. reported net income of $20.1 million in the second quarter of 2025 (ended June 30), up from $14.1 million in Q2 2024, per its financial results.
Arko also reported an adjusted EBITDA for the quarter of $76.9 million, compared to $80.1 million year over year, and merchandise margin for the quarter increased to 33.6% compared to 32.8% the year prior.
“As part of the company’s ongoing transformation plan, the company converted 70 retail stores to dealer sites during the three months ended June 30, 2025. Since the beginning of the retail store conversion initiative in the middle of 2024, the company has converted a total of 282 sites and plans to convert a meaningful number of additional stores throughout 2025 and into 2026. The company continues to expect that, at scale, its channel optimization will yield a cumulative annualized operating income benefit in excess of $20 million, excluding G&A savings. In addition, the company has identified more than $10 million in expected annual structural G&A savings as it fully scales this program,” the retailer said in the report.
The company also advanced its pilot program of new format stores, which “aims to elevate the customer experience by modernizing store layouts, broadening and refining merchandise offerings and introducing an improved food-forward focus.”
“In the second quarter, we delivered solid results while navigating continued macroeconomic headwinds and shifting consumer spending,” said Arie Kotler, chairman, president and chief executive officer of Arko. “We made important progress across several key initiatives, including continued growth in higher-margin categories like OTP, increased engagement from loyalty-driven promotions and opening our first new format store where early results are exceeding expectations. We believe that these wins demonstrate that our strategy is working and building traction where it matters most—at the store level and with our customers.”
Earlier this week, NACS Daily reported that Arko opened a new Handy Mart location in Kinston, North Carolina, featuring its new fas craves branding and menu offering.
“This site is a New-to-Industry (NTI) build and is among the first to feature Arko’s innovative food-forward concept, fas craves,” the retailer said. “This new store is centered around a crave-worthy menu of hot and cold grab-n-go items designed for today’s busy consumer. Whether it’s a quick breakfast, a convenient lunch, or an afternoon snack, fas craves offers delicious, satisfying options throughout the day.”