Yesway raises 2026 outlook after strong Q2

FORT WORTH, Texas — Yesway Inc. raised its full-year earnings outlook after reporting strong second-quarter results, driven by higher fuel margins, merchandise growth and contributions from new stores.

The convenience store operator reported net income of $29.7 million for the quarter ended June 30, up from $24.2 million a year earlier. Adjusted EBITDA increased by 35% to $70.9 million, and Store Contribution rose 29.5% to a record $87.7 million.

“Our second quarter was a milestone in our company’s history, reflecting broad-based execution across both our fuel and inside merchandise businesses,” said Thomas N. Trkla, chairman, president and chief executive officer of Yesway. “We set new records across several key measures, including fuel gallons sold, fuel gross profit, inside merchandise sales, inside merchandise gross profit, and Store Contribution. This operating momentum drove Adjusted EBITDA growth of 35% year-over-year in the second quarter.”

Inside merchandise sales increased 4.4% to $240.1 million, and gross profit rose 5.8% to $85.8 million. Merchandise margin improved 50 basis points to 35.7%. On a same-store basis, inside merchandise sales increased 1.2%, marking growth in 18 of the past 19 quarters.

Fuel was another major driver of the quarter. Fuel sales rose 52.7% to $673.1 million, and fuel gross profit climbed 36.2% to $84 million. Fuel margin increased to 52.6 cents per gallon, up from 41.3 cents a year earlier. Same-store fuel gallons increased 1.4%.

Combined inside merchandise and fuel gross profit increased 14% on a same-store basis. Yesway attributed its higher Adjusted EBITDA and Store Contribution primarily to stronger fuel and merchandise margins and to additional fuel gallons and merchandise sales from new stores.

“These results underscore the strength and breadth of our platform, the advantages of our differentiated market positioning, the resilience of our business model amid continued inflationary pressures and volatile fuel markets, and the disciplined execution of our team,” Trkla said. “Looking ahead, our strong operating performance and significant cash generation are increasing our financial flexibility to fund our organic growth initiatives and pursue acquisitions as compelling opportunities arise.”

Following the quarter, Yesway increased its full-year 2026 Adjusted EBITDA outlook to $235 million to $245 million, up from its previous forecast of $210 million to $220 million. The company said the revised guidance reflects its strong second-quarter performance and assumes fuel margins will moderate to the low-40-cent-per-gallon range in the second half.

Yesway maintained its forecast for same-store inside merchandise sales growth of 1.25% to 3.25%, capital expenditures of $85 million to $95 million, and six to eight new store openings in 2026. The outlook assumes the planned sale of 29 stores in Iowa and Kansas will close by year-end.

As of June 30, Yesway operated 450 stores under the Yesway and Allsup’s banners. The company, which completed its initial public offering in April, operates in nine states across the Midwest and Southwest.