Raymond James & Associates, Inc.., member of New York Stock Exchange / SIPC
Quarterly Newsletter – Spring 2020
In This Issue
Recent, Notable M&A Transactions
Macroeconomic Indicators
Summaries of Recent Earnings Releases
Debt and Equity Market Conditions
Other Recent Content from
Raymond James(Links Below)
Raymond James Equity Research:
Convenience Stores | Fuel Volumes Show
Another Modest W/W Improvement;
Margin Gains Slow
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
2
Deal Spotlights
First Reserve Backed Refuel LLC Acquired Double Quick Inc.
7-Eleven Inc. Acquires 7-Eleven of Oklahoma Observations and Takeaways
Has Acquired• Transaction included 48 company
operated c-stores and five stand-
alone quick service restaurants in
Mississippi and Arkansas
• Indianola, MS based Double Quick
was founded in 1983 by Tom
Gresham and Bill McPherson
• First Reserve backed Refuel, LLC
has experienced tremendous growth
via acquisitions since an investment
by First Reserve in 2019
• Closed: April 23, 2020
• Transaction Value: Undisclosed
• Operating only five stores in
early 2019, transaction brings
Refuel’s company operated c-
store count to 89, keeping it on
pace to surpass the 100-store
milestone by the end of 2020
• Closed: March 1, 2020
• Transaction value: Undisclosed
• “These stores have carried the 7-Eleven name for 67
years, and today they officially join the global 7-Eleven
family, we look forward to meeting the needs of
Oklahoma customers and offering them the great
products and services available in stores across the
country.” – 7-Eleven Inc. CEO & President Joe DePinto
• The Company’s retail portfolio consists of 108 high quality
convenience stores located in Oklahoma (~55% fee
simple) as well as a bakery, commissary and merchandise
distribution facilities that support the retail operations
• The Company has a significant market share position in
central Oklahoma and is the registered owner of the 7-
Eleven trademark and trade dress in Oklahoma
• The Company was founded by the Brown family who has
actively managed the business since 1953
• Transaction brings 7-Eleven Inc.’s U.S. and Canada store
count to almost 9,800
Acquired
Observations and Takeaways
GPM Investments LLC (“GPMI”) to Acquire Empire Petroleum Partners (“EPP”)
Observations and TakeawaysHas Entered into an
Agreement to Purchase• GPMI is one of the largest privately-owned
companies in the convenience store channel,
operating 1,272 c-stores and supplying 128
wholesale locations in 23 states
• EPP was founded in 1988 and is one of the
largest fuel distributors in the U.S., growing
primarily through 22 acquisitions completed
since 2011
• GPMI will acquire EPP’s wholesale fuel
distribution operations and retail business
totaling 1,534 sites (a majority of which are
wholesale)
• Acquisition will increase GPMI’s annual
gallons distributed to ~2.5 billion gallons and
expand its U.S. footprint into 10 new states
• Announced: December 18, 2020
• Expected Close: May 2020
• Transaction Value: ~$400 million
• "Empire has a reputation for providing superior quality and service to
its dealers, making it a logical combination with GPM, with a history of
successful execution.“ - Empire CEO Rick Golman
EPP Fuel Brands
GPMI Operations
GPMI Headquarters
New EPP Operations
EPP Headquarters
Geographic Overlap
Major GPMI Fuel Brands
Oklahoma
Closed Target Headquarters
4/23/20Double
Quick, Inc.Indianola, MS
6/27/19
Bishopville
Petroleum
Co., Inc.
Bishopville, SC
5/2/19West Oil,
Inc.Hartsville, SC
Recent Acquisitions
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
3
0
500
1,000
1,500
2,000
2,500
3,000
2015 2016 2017 2018 2019 2020
721
149
2,355
860
1,169
990
1,369
608 607
91
245
748
496 387
0
200
400
600
800
1,000
1,200
1,400
1,600
0
500
1,000
1,500
2,000
2,500
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
M&A Transactions
Recent M&A Transactions in Convenience Store Industry
Spring M&A Overview
• 7-Eleven Inc’s acquisition
of 7-Eleven Oklahoma (108
stores) represents one of
the largest acquisitions for
the industry year-to-date
• Other notable acquisitions
year-to-date include
CrossAmerica Partners’
acquisition of 169 retail
sites (closed on 4/14/20)
from a seller group that
includes entities affiliated
with Joe Topper, Chairman
of the board of
CrossAmerica’s general
partner
• For context, EG Group’s
acquisition of Cumberland
Farm’s 562 stores
represented the industry’s
largest retail acquisition of
2019
• The Covid-19 virus has
sparked a global economic
downturn – reducing
consumer confidence and
spending, as well as supply
chain disruptions
• Although COVID-19 has
impacted M&A volume over
the last several months, the
convenience store industry
has performed relatively
well compared to many
other types of retail,
positioning it well for an
M&A rebound as the
pandemic begins to abate
Most Active Acquirors(1)
M&A Activity By Store Count(1)
LTM Rolling Average
3.2%Quarterly
GDP
# of Stores
Acquired
3.1% 2.9% 2.2% 4.2%1.8% 1.2% 3.5% 2.2% 3.1%
(1) Source: Public company filings and press releases; count as of announcement date. Includes
only U.S. deals.
(2) Includes Sunoco LP’s retail assets sold to 7-Eleven.
(3) Includes Marathon’s acquisition of Andeavor (1,085 sites).
2.0% 2.1%
(2)
(3)
2.1% (4.8%)
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
4
M&A Transactions
Summary of Notable Transactions in the Convenience Store Space
Source: Public company filings, press releases and CapitalIQ.
Note: Store count includes cardlocks and travel centers in certain transactions; purchase price may
include non-convenience store operations (e.g. wholesale distribution assets and refineries).
Announced TEV Store
Date Acquiror Target ($MM) Count Target Description
2/13/2020 ReFuel LLCGresham Petroleum
(Double Quick)- 48
Based in Indianola, MS, Gresham Petroleum operates 48 convenience stores under the "Double
Quick" brand; additionally operates a wholesale division which was not included in the transaction.
1/17/2020 7-Eleven Inc.7-Eleven stores Of
Oklahoma- 108
7-Eleven of Oklahoma is independently owned and operated 108 retail locations throughout the
greater Oklahoma City metropolitan area.
1/16/2020CrossAmerica
Partners, LP
Select Assets of Joe
Topper35.7 -
Transaction includes 172 dealer sites in Ohio and Pennsylvania that are managed through entities
affiliated with Joe Topper including most notably, Dunne Manning Inc.
12/18/2019 GPM Investments Empire Petroleum LLC 400.0 77Empire Petroleum and is one of the largest fuel distributors in the U.S., distributing ~1.1 billion
gallons of fuel in 2019 to 1,534 retail sites, of which 77 are company-operated.
11/20/2019 Joe TopperCrossAmerica Partner's
General Partner- -
Prior to the transaction, Alimentation Couche-Tard Inc. held 100% general partner interest in
CrossAmerica Partners, LP a publicly-traded wholesale fuel distributor to over 1,300 sites.
11/18/2019 Par Mar Stores Mountaineer Mart - 17 The Company operates 17 "Mountaineer Mart" branded stores all located in West Virginia.
10/16/2019 Campbell Oil The Hartley Co. - 31The Hartley Co. operates 16 "Starfire" branded stores in Ohio and distributes Marathon fuels to 15
company-owned and dealer operated locations.
10/8/2019Brookwood Financial
Partners (Yesway)
Allsup's Convenience
Stores- 304
Allsup's is a top 40 operator (in terms of store count) doing business throughout New Mexico,
Texas, and Oklahoma. The Company is known for its strong foodservice offerings.
9/30/2019 GPM Investments Riiser Energy - 63Riiser Energy operates 63 stores throughout Wisconsin and has doubled its store count over the
last year primarily through acquisitions.
8/28/2019 TrueNorth Energy Schmuckal Oil Company - 25Schmuckal Oil operates 25 "Mini-Mart" branded convenience stores and manages a wholesale and
transport division in northern Michigan.
7/12/2019 EG Group Cumberland Farms 2,100.0 562Cumberland Farms is a top-15 convenience store operator that does business in Connecticut,
Florida, Massachusetts, Maine, New Hampshire, New York, Rhode Island, and Vermont.
6/26/2019 Applegreen CrossAmerica Partners - 46Allentown, PA-based CrossAmerica is a wholesale distributor of motor fuels and owner and lessor
of real estate used in the retail distribution of motor fuels.
5/13/2019 EG Group Certified Oil - 69Certified Oil operates 69 convenience stores located throughout Kentucky, West Virginia, and
Ohio.
4/14/2019 Marathon NOCO Energy - 33NOCO Express has sold its 33 convenience stores, as well as a 900,000-barrel capacity light
product and asphalt terminal.
4/9/2019 EG Group Fastrac - 54East Syracuse, NY-based Fastrac owns and operates convenience stores across the Rochester-
Syracuse-Albany region.
4/2/2019 GPM Investments Town Star Holdings LLC - 18Town Star Holdings was formed by Junonia Capital LLC by acquiring 13 c-stores from TimeSaver
Food Stores Co. in 2014 and five c-stores from RaceTrac Petroleum Inc. in 2015.
2/21/2019 First Reserve Refuel Inc. & West Oil Inc. - 31 Refuel Inc. & West Oil Inc. together operate 31 convenience store sites in South Carolina.
1/16/2019TravelCenters of
America LLC
Hospitality Properties
Trust308.2 20
HPT is the principal landlord of TravelCenters of America. This sale-leaseback transaction involved
20 sites previously leased from HPT for a total deal value of $308.2 million.
12/13/2018Atlantis Management
Group LLCDattilo Petroleum Inc. - 27
Dattilo Petroleum Inc. is an operator of 27 Shell and Citgo-branded retail sites in New York and
New Jersey.
12/3/2018BP & ArcLight Capital
PartnersThorntons Inc. 1,075.0 191
Thorntons operates 191 c-stores in Florida, Illinois, Indiana, Kentucky, Ohio and Tennessee. BP
and private equity firm ArcLight Capital Partners formed a joint venture to acquire the company.
10/23/2018 United Pacific Macland Investments - 39Macland Investments owns and operates 39 gas stations and c-stores as well as provides car
washing and real estate services in California.
10/5/2018 Coen Markets Inc. CoGo's Co. - 38CoGo's Co. is an operator of 38 convenience stores in western and central Pennsylvania, West
Virginia and Maryland and has a franchise program.
10/2/2018Petroleum Marketing
Group Inc.
Hendel's Inc. (Henny
Penny)- 40
Hendel's Inc. is a family owned business operating 26 company operated convenience stores and
providing fuel to 14 dealers under the Henny Penny brand.
9/27/2018 Giant Eagle Inc. Ricker Oil Company, Inc. - 56Ricker Oil is a convenience store operator with 54 stores throughout Indiana, with significant
concentration within the Indianapolis MSA.
9/4/2018 EG GroupTravelCenters of America
LLC (C-Store Division)330.8 225
TravelCenters of America is a publicly-traded company operating both a convenience store and
travel center divisions throughout the U.S.
8/24/2018 Quinenco S.A. Road Ranger LLC 289.0 38Road Ranger operates a network of 38 travel centers throughout Iowa, Missouri, Illinois, Indiana,
Wisconsin, Indiana, and Texas.
High $2,100.0 562
Low 35.7 17
Median 330.8 43
Average 648.4 90
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
2.3% 2.2%
3.2% 3.5%
2.5%
3.5% 2.9%
1.1%
3.1%
2.0% 2.1% 2.1%
(4.8%)
-7%
-5%
-3%
-1%
1%
3%
5%
Q1'17
Q2'17
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
May-16 Nov-16 May-17 Nov-17 May-18 Nov-18 May-19 Nov-19 May-20
Inflation (CPI) 10-Year U.S. Treasury Yield
($40)
($20)
$0
$20
$40
$60
$80
May-17 Nov-17 May-18 Nov-18 May-19 Nov-19 May-20
40.0
45.0
50.0
55.0
60.0
65.0
Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 Dec-19 Apr-20
2.4% 2.4% 2.4%
4.6%
1.7%
4.0% 3.5%
1.4% 1.1%
4.6%
3.2%
1.8%
(7.6%)(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
Q1'17
Q2'17
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Source: Bureau of Economic Analysis, St. Louis Federal Reserve, Bureau of Labor
Statistics, Institute for Supply Management and Capital IQ.
(1) BEA Advance Estimate as of 4/29/20.
MACROECONOMIC INDICATORS
West Texas Intermediate($ per barrel)
Inflation vs. 10-Year Treasury
Real GDP Growth(seasonally adjusted annual rates)
Consumer Spending Growth(Real PCE % change, seasonally adjusted at annual rates)
Purchasing Managers Index(annual rate)
Weekly Jobless Claims(in millions)
5
Note: PMI Index figures above 50 indicate expansion
5/5/20
0.7%
March 2020
1.5%
5/11/20
$24.02
April 2020
41.5
(1)
Industrial production fell 15.5% in
April from the month prior
Retail sales fell 8.7% in
March from a month
earlier, largest monthly
decline on record
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20
Week Ended 5/9/20
3.0
33.5 million job losses
over the last month,
the most rapid and
severe amount of job
destruction on recordIMF estimates
that global GDP
will contract
3.0% in 2020
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
6
Quarterly Earnings Recap
Source: Public company filings.
(1) Reflects total retail and wholesale fuel margin.
(2) Reflect U.S. performance.
(3) In-store margins and SSS merchandise comps calculated as weighted average of
all reported in-store / non-fuel product categories.
TravelCenters of America LLC (NasdaqGS: TA)
• “Fuel sales volume increased by 16.9 million
gallons or 3.6%. In addition to increased trucking
activity during the last two weeks of March as
the implications of the COVID-19 pandemic
began to be widely understood we believe these
increases were also driven by our UltraONE
customer loyalty program…..as well as our
commercial sales team and improved market
conditions during the first 2.5 months of 2020.”
• “Non-fuel revenues decreased 3.6% as a result
of a decrease in revenue of the company's
standalone and full service restaurants driven by
government mandated temporary closures….”
Murphy USA Inc. (NYSE: MUSA)
• “Total retail gallons increased 1.2% y/y in Q1,
while volumes on a same store sales basis
decreased 1.0%. Retail fuel margins of 26.9 cpg
were 220.2% higher than the first quarter 2019.”
• “While the drop in crude prices from around $62 a
barrel in January to just below $20 a barrel in late
March was not of the same magnitude as we saw
in 2008, it occurred in a much, much shorter time
frame. The immediate result of this rapid drop
was the generation of total fuel margins of $0.225
per gallon, which in turn led to our record Q1
financial performance.”
Casey’s General Stores, Inc. (NasdaqGS: CASY)(3)
• “Earnings were impacted by lower fuel margin
versus the third quarter last year and higher
operating expenses as we cycled over significant
operating expense reductions in the prior year.”
• “During the quarter in the fuel category, we
experienced a challenging demand environment.
While at the same time, we were comparing
against our strongest margin period from a year
ago. We were pleased with our ability to leverage
our current price optimization and procurement
programs to navigate through this.”
Alimentation Couche-Tard Inc. (TSX: ATD.B)(2)
• “In the U.S., we saw an increase in same-store
merchandise revenue of 3% compared with the
same quarter last year. Across the network, we
continue to see positive benefits driven by the
successful rebranding activities, continued
improvements to our offerings as well as various
initiatives to drive traffic.”
• “U.S., fuel volumes were stable and once again
outperformed the industry with same-store volumes
increasing by 0.1%....and fuel margins continued to
experience positive trends even as we cycled
against an exceptional performance last year.”
Change
3/31/2020 3/31/2019
EPS -$2.23 -$1.58 41.1%
SSS Fuel Gallons 3.6% 2.0% 1.6%
Fuel Margin (CPG) $0.168 $0.161 $0.007
SSS Merch Sales -3.6% 2.7% -6.3%
In-Store Margin 61.9% 61.8% 0.1%
Quarter Ended
Change
3/31/2020 3/31/2019
EPS $2.92 $0.16 1725.0%
SSS Fuel Gallons -1.0% 1.8% -2.8%
Fuel Margin (CPG) $0.225 $0.123 $0.102
SSS Merch Sales 11.8% 5.4% 6.4%
In-Store Margin 15.6% 16.1% -0.5%
Quarter Ended
Change
2/2/2020 2/3/2019
EPS $0.59 $0.54 9.3%
SSS Fuel Gallons 0.1% 0.8% -0.7%
Fuel Margin (CPG) $0.270 $0.294 -$0.024
SSS Merch Sales 3.0% 4.5% -1.5%
In-Store Margin 34.0% 33.7% 0.3%
Quarter Ended
Change
1/31/2020 1/31/2019
EPS $0.91 $1.13 -19.5%
SSS Fuel Gallons -2.0% -3.4% 1.4%
Fuel Margin (CPG) $0.217 $0.221 -$0.004
SSS Merch Sales 3.3% 2.8% 0.5%
In-Store Margin 41.6% 41.7% -0.1%
Quarter Ended
(1)
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
7
8.5x
12.0x
5.6x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
CAPL SUN GLP
13.9%
16.2% 16.1%
0%
3%
6%
9%
12%
15%
18%
SUN GLP CAPL
23.7x
14.0x15.6x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
CASY MUSA ATD.B
10.1x
11.4x
7.5x
3.0x
5.0x
7.0x
9.0x
11.0x
13.0x
15.0x
ATD.B CASY MUSA
10.4x
11.2x
7.4x
3.0x
5.0x
7.0x
9.0x
11.0x
13.0x
15.0x
ATD.B CASY MUSA
88.6% 87.6%
80.3%
20%
40%
60%
80%
100%
MUSA ATD.B CASY
7
Public Companies: Trading Multiples
Convenience Store Comparables (ATD.B, CASY, MUSA)
Current Price as a % of LTM High LTM P/E Ratio
Wholesale Fuel MLP Comparables Trading Multiples (SUN, CAPL, GLP)
EV / LTM EBITDA EV / 2020E EBITDA
EV / LTM EBITDAAnnualized (MRQ) Distribution Yield
Source: Public company filings, Capital IQ, Wall Street equity research.
Note: Share prices current as of 5/14/20.
Median: 88.6%
Median: 10.4x
Median: 10.1x
Median: 16.1%
Median: 8.5x
Median: 15..6x
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
8
20
40
60
80
100
120
140
160
May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20
Alerian MLP Index Sunoco LP Global Partners LP CrossAmerica Partners LP Wholesale MLP Average
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20
S&P 500 Casey's General Stores, Inc. TravelCenters of America LLC
Murphy USA Inc. Alimentation Couche-Tard Inc. C-Store Average
Public Company Share Price Performance
Convenience Store Dividend Adjusted Prior Three Year Share Price Performance (ATD.B, CASY, MUSA, TA)
Wholesale Fuel MLP Dividend Adjusted Prior Three Year Unit Price Performance (SUN, CAPL, GLP)
Note: Price performance is based on dividend-adjusted share pricing. Indexed share price
performance (5/14/17 = 100.0).
Source: Capital IQ.
+27.2%
+18.7%
+30.9%
+55.4%
0.7%
-60.3%
-34.1%
-19.6%
+3.8%
-62.0%
-28.6%
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
9
6.7x
6.8x
6.6x
7.2x
6.6x
6.6x
7.4x
8.4x8.8x
9.2x
10.7x
9.8x
10.9x 11.0x
9.8x
11.5x
11.7x
8.9x
10.4x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
11.0x
12.0x
13.0x
May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 May-20
10¢
20¢
30¢
40¢
50¢
60¢
70¢
80¢
Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov
2016/17 2017/18 2018/19
2019/20 4 yr. Average
Historical Valuation Multiples & Fuel CPG
Fuel Margins Performance (cpg)
10-Year Convenience Store Historical Trading Multiples (EV/EBITDA)(1)
Quarterly National Retail Gasoline Margins National Retail Fuel Margins – Monthly Trends
Source: S&P Cap IQ; OPIS, and Raymond James equity research.
(1) Median EV/LTM EBITDA multiple for ATD, CASY, CST, MUSA, PTRY, and SUSS. CST added on 4/17/2013 (spin-off from Valero Corporation). MUSA added on
8/19/2013 (spin-off from Murphy Oil Corporation). PTRY removed on 3/17/2015 (acquired by Alimentation Couche-Tard). SUSS removed on 8/30/2014 (acquired by
Sunoco LP). CST removed on 6/28/2017 (acquired by Alimentation Couche-Tard).
10-Year Average: 9.3x
10.4x
5/14/20
TBU
TBU
10¢
15¢
20¢
25¢
30¢
35¢
40¢
Mar Jun Sep Dec
2016 2017 2018 2019 2020 5 yr. Average
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
10
Current Debt Market Outlook
Source: LCD Research.
(1) Middle market defined as companies with less than $50 million in EBITDA.
US Companies Historical Interest Rates
Middle Market Leverage Trends(1)
Non-Investment Grade Bond Yields
4.8x5.0x 4.9x
5.1x5.4x
5.6x5.4x 5.3x
2.0x
3.0x
4.0x
5.0x
6.0x
2013 2014 2015 2016 2017 2018 2019 2020Q1
Average Leverage Ratio
35%
40%
45%
50%
55%
2008 2010 2012 2014 2016 2018
Average LBO Equity Contribution
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
4Q'16
1Q'17
2Q'17
3Q'17
4Q'17
1Q'18
2Q'18
3Q'18
4Q'18
1Q'19
2Q'19
3Q'19
4Q'19
1Q'20
BAML High Yield Index
S&P LCD LEVERAGE LOAN 100 INDEX YTM
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
May-19 Aug-19 Nov-19 Feb-20 May-20
Yield To Maturity
5/7/20
7.7%
Leveraged Finance Volume ($BN)
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Pro Rata Institutional High-Yield
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
11
What We Are Reading
“Still Concerned About COVID-19, U.S. Consumers Will Want More From Convenience Stores” | Nielsen
May 18, 2020 – “Last November, Nielsen forecasted that the U.S. convenience channel would grow faster than all other offline channels
over the next five years. When we look at the importance of proximity to our homes and the desire among many to avoid large crowds,
convenience stores have the ability to write their own future. To do so, they need to embrace the opportunity to expand beyond
categories traditionally expected from the channel. Baking staples, for example, aren’t common on the shelves at most C-stores, but
sales of the category have been on an upward trend across the U.S. since the week of March 14, 2020, as consumers settled into
restricted living conditions. The same can be said for household cleaners and fresh meats. As consumers begin to evolve into their new
normal, convenience stores can put themselves into the consideration set for these new need states.”
Read More
“Visa Delays Fuel Dispenser EMV Deadline” | Jackson Lewis, CSP Daily News
May 1, 2020 – “Visa will delay the EMV liability shift deadline for automatic fuel dispensers to accept chip cards from Oct. 1, 2020, to April
17, 2021. The responsibility for fraudulent transactions will shift to fuel retailers that have not upgraded their dispensers to the new
standard. The change in date is in response to letters NACS, PMAA, SIGMA and NATSO sent to the four credit card networks — Visa,
Mastercard, American Express and Discover — that manage the EMV liability shift. The letters requested the October deadline be delayed
given the shelter-in-place or stay-at-home orders because of the coronavirus pandemic.”
Read More
March 24, 2020 – “Among the many change-of-life impacts of the COVID-19 coronavirus pandemic, convenience stores are seeing an
increase in shoppers who typically would go to supermarkets for their grocery needs. Fifteen percent of shoppers said they are more
likely to shop at convenience stores for groceries due to the pandemic, according to a new study conducted by Convenience Store
News’ parent company, EnsembleIQ. Fielded March 13-15, the survey was conducted among 1,001 primary household grocery
shoppers in the United States. Almost half of the respondents (44 percent) say they are stocking up on cleaning supplies, medications,
personal care items and food to keep themselves healthy and prepared for whatever may come next. Regardless of where shoppers
typically shop for groceries, they are now turning to online shopping more often as a result of the pandemic, according to the findings.
Convenience stores also are capturing more shoppers, as are drug and dollar stores. Interestingly, many shoppers are going to
specialty/natural stores more often, too. Besides an increase in grocery shopping at c-stores and other non-supermarket outlets, the
research revealed other behavioral changes, including a significant increase in online ordering and use of out-of-store pickup options.”
Read More
“Exclusive Research Shows Coronavirus Pandemic Is Driving Grocery Shoppers to Convenience Stores” | CS News
“C-store Spending Gets a Boost From Federal Stimulus Checks” | CS News
April 28, 2020 – “A week after consumers reported a decrease in spending at convenience stores, the channel is getting a boost. According
to the latest weekly report from NACS and PDI on how COVID-19 is impacting consumer insights, spending at c-stores rose during the third
week of April compared to the week prior. A notable uptick was seen on April 15 — the date millions of Americans received federal stimulus
payments. While overall spend and trips are still down compared to one year ago, there are signs of improvement, as the decline in year-
over-year spend further slowed from a 12.1-percent decline for the week ended April 12 to a 5-percent decline for the week ended April 19.
This is primarily because trips are not down as much, going from a 28.7 percent decline for the week ended April 12 to a 24.3 percent
decline for the week ended April 19, according to the findings.”
Read More
Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed
web sites or their respective sponsors. Raymond James is not responsible for the content of any web site or the collection or use of information regarding
any web site’s users and/or members.
“GasBuddy Issues New Consumer Fuel-Buying Trends Quarterly Report, Reveals Unprecedented 20% Drop in
Gasoline Demand Year-Over-Year Due to COVID-19” | GasBuddy
April 15, 2020 – “GasBuddy, the travel and navigation app that is used by more North American drivers to save money on gas, today
released its first quarterly report examining consumer fuel buying trends, finding that March 2020 fuel demand in gallons purchased
dropped 20% compared to March 2019 as millions of Americans followed stay-at-home orders during the COVID-19 pandemic.
The report examines millions of fuel transactions from Pay with GasBuddy, the first-of-its-kind fuel savings program that gives drivers a
discount on virtually every gallon of gas they will ever pump, used by nearly 750,000 Americans. Along with the 20% decline in gallons
pumped in March year-over-year, additional declines include a 14% drop in fuel transactions and a 28% drop in total payment volume
(TPV). These drops come at a time when gasoline has never been more affordable due to a combination of the massive global surplus
of crude oil and drop in demand.”
Read More
CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER
ABOUT RAYMOND JAMES CONVENIENCE STORE & FUEL PRODUCTS DISTRIBUTION INVESTMENT BANKING
• Leading full-service financial advisor to the Convenience Store and Fuel Products Distribution industries
• Experienced and seasoned transaction team
• Dedicated to providing a full range of advisory and capital-raising solutions to industry participants
• Established strong track record of working with the industry’s leading companies and delivering results
• Maintain deep relationships with key equity investors, specialty lenders, sale-leaseback providers and other capital sources
• As M&A specialists, we understand the concerns of buyers and sellers and how to drive value for our clients
• Convenience Store Retailers
• Wholesale Petroleum
Distributors
• Truck Stop and Travel
Center Operators
• Commercial Fuel &
Lube Distributors
• Car Wash Operators
• Alternative Fuel Providers
• Propane Distributors
• Terminal Operators
• Merchandise /
Foodservice Distributors
• Mobile Fueling
• Company Sales
• Acquisition Advisory
• Private Equity Placements
• Debt Capital Raises
• Asset Sales / Divestitures
• Restructurings
• Recapitalizations
• Public Offerings
• Master Limited Partnerships
CLIENT FOCUSADVISORY SERVICES
Convenience Store & Fuel Products Distribution Investment Banking
SCOTT GARFINKEL
Group Head
Nashville, TN // 615.645.6796
ROGER WOODMAN
Managing Director
Atlanta, GA // 404.240.6864
DAVID CORBETT
Director
Atlanta, GA // 404.279.7442
JOHN VEITH
Director
Nashville, TN // 615.645.6799
Representative Transactions
12
This material is not to be considered an offer or solicitation regarding the sale of any security. This material was prepared within Raymond James &
Associates’ Investment Banking Department and is for information purposes only. This material is not a product of Raymond James & Associates’
Research Department; recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other
decision. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does
not guarantee future results. Information contained in this report was received from sources believed to be reliable, but accuracy is not guaranteed.
Raymond James & Associates, Inc.., member of New York Stock Exchange / SIPC
Has sold its California and
Wyoming assets to
$408,000,000
Has been acquired byHas sold its retail convenience
store assets to
(formerly Tesoro Corp.)
$535,000,000
Has acquired
2017 Cross Border Deal of
the Year ($500MM - $1B)
Has acquiredHas sold its wholesale fuel and
refined fuel terminal assets toHas sold its c-store and fuel
distribution assets to
Has been acquired by
$289,000,000
OklahomaHas been acquired by
Has sold select assets to