RICHMOND, Va. — Arko Corp. is accelerating the expansion of its fas craves food and beverage concept as part of a broader transformation strategy to improve profitability and strengthen its convenience retail operations.
The company expects to complete more than 25 store remodels in 2026, all featuring the fas craves concept. Eleven remodels have already been completed, reflecting Arko’s growing emphasis on foodservice to increase customer engagement and drive higher-margin merchandise sales.
The expansion comes as Arko reported third-quarter net income of $14.3 million, up from $13.5 million a year earlier. Adjusted EBITDA totaled $75.7 million, compared with $75.2 million in the prior-year quarter.
Merchandise margin increased by 110 basis points to 34.8%, marking the company’s 12th consecutive quarter of year-over-year improvement. Arko also raised the lower end of its full-year adjusted EBITDA guidance, now forecasting $250 million to $265 million.
Alongside its foodservice investments, Arko continues to reshape its retail portfolio through its dealerization program, which converts company-operated convenience stores into dealer-operated locations.
During the third quarter, the company converted 17 stores, bringing the total to 488 since the program began in 2024. Approximately 55 additional locations were in letters of intent, under contract, or converted after the quarter’s close. Arko expects the initiative to be largely complete by the end of 2027.
The company is also expanding its fleet-fueling business. It opened five new locations in the first nine months of 2026 and added two more in October, with another 16 sites in various stages of planning and development.
In August, subsidiary Arko Petroleum Corp. entered into an agreement to acquire the business of U.S. Petroleum Partners LLC, a transaction intended to expand its operating scale and infrastructure.
Together, the initiatives reflect Arko’s strategy to concentrate resources on higher-margin convenience retail opportunities, expand its foodservice offerings, and grow its fuel distribution operations.
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