Arko Corporation yesterday announced financial results for the fourth quarter and the full year ended December 31, 2024. According to the report, the company’s net loss for the quarter was $2.3 million compared to net income of $1.1 million, while net income for the year was $20.8 million compared to $34.6 million year over year.
As part of the company’s developing transformation plan, it converted 153 retail stores to dealer sites in 2024, including approximately 100 stores converted in the fourth quarter.
The company said it also expects to convert a “meaningful number” of additional stores throughout 2025, including approximately 100 more retail stores by the end of the first quarter of 2025. The stores converted to dealer locations in 2024 are expected to produce an annualized benefit to combined wholesale segment and retail segment operating income of approximately $8.5 million.
In 2024, the company “expanded its planned pipeline of NTI (new-to-industry) stores to eight, including two stores that opened in 2024, and an additional two stores opened in the first quarter of 2025. The company expects to open the four remaining NTI locations over the course of 2025.”
“We navigated a challenging macroeconomic environment in 2024, while advancing the development of our multi-year transformation plan," said Arie Kotler, chairman, president and CEO of ARKO. “We made progress with our dealerization program by strategically refining our retail footprint, strengthening merchandising initiatives and enhancing customer engagement through value-driven promotions for in-store merchandise and, more recently, a more aggressive value offer at the pump. Our focus on operational efficiencies and the dealerization program allowed us to manage through industry-wide headwinds while making strategic investments in high-growth areas, such as foodservice and other tobacco products to meet evolving customer preferences.”
The company now expects that, at scale, its channel optimization will yield a cumulative annualized benefit of operating income in excess of $20 million.
Arko said its merchandise margin rate for the quarter increased to 33.0% compared to 32.9%. For the year, merchandise margin rate increased to 32.8% compared to 31.8% the year before.
Retail fuel contribution for the quarter was $100.2 million compared to $109.3 million. For the year, retail fuel contribution was $428.2 million compared to $435.3 million the previous year.
Earlier this month, Arko Corp. launched its “Fueling America’s Future” campaign, offering its fas Rewards members the opportunity to save “up to $40 per fill-up through the ability to stack discounts earned through qualifying purchases.” The company said this promotion “has never been done by any gas station nationwide” and seeks to mitigate the “substantial expense of fuel.”