Murphy USA (MUSA) 2 Nov 232023 Q3 Earnings call transcript

Thank you for standing by. My name is Kayla Baker, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Murphy USA Third Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. now of turn Investor would to call I President Vice Relations, Instructions] like the to over [Operation's Christian Pikul.

begin. may You

results, then Thank of Executive and our will Financial Officer; Officer; a up in guidance, call Reform everybody. Controller. morning, Litigation West, Executive in and With provide call, and After Q&A are and Donnie the will and then the joining an Mindy Clyde, XXXX. to provide of Kayla, Chief keep President Andrew including Act Chief our today. will overview usual, of this portion, me, of be Andrew quick Mindy Smith, Thanks Please made Private and some opening President and we'll financial comments, Vice us the mind defined overview as considered you, the Securities for during the good as Vice comments forward-looking President open that Q&A. statements

can these actual results A such, exist cause variety may be attained. As that given of be occur assurances events or to the will that no factors projections that will differ.

SEC or discussion Murphy duty please of risk recent latest takes the USA USA XX-K, revise update any further XX-Q, forward-looking and to other see publicly Forms no X-K For Murphy factors, filings. statements.

we GAAP. performance call, measures generally or principles that may certain today's also provide to During accounting do not accepted conform

turn a GAAP be part the will Investors Andrew. to schedules can provided website. of the With as reconcile these results non-GAAP basis to have over section that, on the our We release, on with earnings measures of call found which press I our reported

today. the Thank call you, on you, Christian. for joining us Thank everyone,

our messages and in our we we reflecting convey on partners outlook update. the key to for for the as earnings call others any are Over narrative our to that the as employees, an performance of quarterly quarter, the as investors well course and shape constantly and tune

in how has in conditions competitive of sure, important XXXX those is results what we does questions: the sustainable third to path be and really a support momentum have in our initiatives investors ongoing an model believe instructive given last of XXXX, full and of and believe opportunity XXXX. evolved set various the value business will except price headlines structure the current we performance will but in not profits year's and amongst the into a on without direction in years we news and we reinforce and creation, trajectory be insight to we durable extraordinary every that the fundamental prior -- is X-year quarter year And in especially of structure for to third market, could just we results, gasoline, to for importantly, understand ahead While this on to don't performance point generated that truly or the in the Murphy and By to drop path is about the sustainable time described look the more financial time compared services to bots lower year, their most shouldn't the that anyone as the the but once discussing view. morning our any commodity competitors. underpin exceed X record price do of scraping and investors. What updates quarter-over-quarter too automatically focused sustainable now, the X- is this the what revenues bots. provide this of are a messages forward should long-term to advantaged the USA quarter year's And Instead, industry think lot advantage that's spend relative we of helpful be expect investors positioning and evolution results helpful. from to previously

So these important ongoing discussion questions. seeks investors on our to continue with today's call

stores. imbalances. and to our higher customers more shocks underlying X inflationary means and whether current to at forced like to for be unique This refining fuel, gallons the value this as the geopolitical drives value performance requirements higher growing and efficiently market adoption perpetuating optimizing sustain price that into gallon fuel gains, momentum to Channeling to USA. by the future deliver headwind USA and the environment, customer one drivers. trajectory on volatility transforming cycle capabilities sources current of large-scale created setup of benefit price and the accrues or In industry sustainable has derived macroeconomic Murphy for down to and base distinctive enhance Our our to growth logistics volatility persistent network are new supply-demand Starting trial pressures who in innovative from business investing environment offers, is customer of themselves with and the us differentiated with to value a returns and prices levels shift trading value-seeking a to disruptions macro greatest reflect and raise while market share price the in from volatility, or heightened retailers expense for value-oriented at the accelerate marginal higher Murphy network share in the the our the more advantage capital. of and fuel in-store customers continues breakeven existing generated or players

quarter and achieved. gains impact foundational reflect results we share Third year-to-date of have the

due generated of the were versus X.X%. down ongoing X.X% with our pricing. the market While X-year on a fuel In remains same-store quarter, the stack customers to we telling commentary up strong, bottom year to prior volumes commitment goodwill have

other broader our clearly loyalty is annual this we margins products our Within have sensitive periods service at above incredible our through of a more price attract guided great to expect sustained great in volumes at lower ability expected benefits, and evident. our per margins customer price but gallon them suggested gallon, like and consumers we even average to half context, to value be in subset that periods, of improved little relative certainly range. some in And the rational Year-to-date remain XX% we And retain less XXXX. customers volatility within high dynamics margin and While year-to-date risk and price and first per range $X.XXX balance the hope attractive the $X.XX helps below pray supply in of still regions prices. low certain the given domestic global all-in Northeast. while and diminishes are importantly,

generate environment. customers most affordability job, purpose win during any for indeed, our in the our our customer to value Our the difficult we We because provide times. most is value and

XXXX. the quarter, have in gallons strong nearly a even about margin think will we coupled start we with for the billion equilibrium refined range product stores our year-to-date think experienced, we higher we margins of X As be the to fourth likely in sell

to Turning performance. in-store

enhance associates our costs, back optimizing business how with towards over as everyday Drive objectives as in look we characterize breakeven stores, requirement we a our channeling public aligned years I stand-alone our reduce low-price reducing would a formats, transforming loyalty merchandising company, and spirit the unique first conduct As our platform of history to and our creating our the incredible Murphy spin-off since XX Rewards. high-volume

opened interact discuss release our store strongly stores January trajectory sales which our merchandise as XX performance this and foundation we same-store you come as volumes, new years, we X, performance, about larger momentum in to we are of with performance, all lens footprint. earnings It sales shown it also of that as The operating higher stores and merchandise operating higher since given average, transforming margins, accretive customers. and to through which stores excludes continuation with network a the we how our These comparing stores and captures is kinds as stores building the XXXX. but expect, new come do higher expenses. and As want APSM the would costs, business to the well are this compared in is with think next I

and higher better These and More a continued to coverage ratio innovation stores results Giants, market have the underlying partnership by and underpinned strength USA. this offer business. for were focus in-store grab-and-go share. through returns, our in co-branded contribution saw importantly, we quarter, at on improved our nicotine developed sales signature Check subs beverage and York by a to with more our significant attractive frozen beverage at helping food addition average us momentum and Quick in and Murphy our a New where food In learning growing and we grow deliver in customers, driven by the sustain these results

X.X% while respectively. our sales customers. While not these relentless the and of quarter In any in and and generate mindset demonstrating and food contribution grew quarter, benefits also total, enduring results tangible our doubles by X.X%, these and to runs efforts beverage for commitment and home innovative cumulative dollars singles individual

mix shift signs the categories. ratable key all more Our continues performance as business. nicotine And dollars share it to we tobacco steady in margin in contribution to remember, not to merchandise growth makes The a difficult dollar take our relatively supports gaining outperform, growth signs. percentage. in percentage strong business merchandise while bank, or

have fact, our through COVID and business, in trajectory our years respect we perspective. to expect people think perspective XXXX. both With costs, from an operating into about of merchandise the acquisition past impact Check, continue growth the the dollars, Quick single-digit In impacts margin cost to store and the rates altered trend over and level X generating sales of we a a of high we

staffing number over supporting generate reducing higher staffing our risk assistant getting metrics, right in well the cohort with benefits improving the career leaders to in efforts at in our as We place, of stores manager pathing and time are of operations, costs identify These investing hours the people, perspective, establishing turnover. as in associated the improving reducing from a people. develop talent store

on of journey the investments, share market has Rewards, margin up fuel enabled our have capability directly X.X% increase as renewal, with volatility. us higher square discussion operating which merchandise the up reflect the driving costs shrink well decade-long X.X% expirations of EMV investments Store For were tobacco to customer. prices capture retail network. nonpeople from gains million XXXX, dispensers, in we Drive improvement in of multiyear warranty Murphy investments costs a due pricing as per our our come believe This up also value since basis. per These footage were the trajectory contracts store. price contribution track costs stores of incremental X.X% cost quarter, considering reflects for earlier capability number with started store over and basis a made that investments largely excellence more our retail the understand Similar Wrapping $XXX and generated the to on store we've in in our added inception. impact to higher of people have up its largely total per from the since record

of returns the In we investments evaluate and our SG&A fact, highest decade. generated investment they've by made capabilities, any in the if far, past

New the The over our forward, as we been the initiatives years. the and our resilience over to the XX to generated in of strength year. fourth over some to us over review experience of since results, now to the spin. business review in model investors our in XXXX we talent corporate I'm success are tenfold seeing cost quarter quarter mention and expense, and El and the questions. investments reflects summary, our the momentum right and critical which the I'll increase of are digital again of shareholder making our Going Jersey and costs current with we new results elements agility Mindy capital guidance and for the briefly discuss sustainable open in-store we able the the and competitive about the has are then the past up campaigns. next call into transformation we We've to a continue some across once our advantage new going to pleased not reflected after years, demonstrated for pace and to value business the in head financial into Dorado hand the spending, drive our include trajectory business coming this G&A In get in are at time ratably to the right extend very decade third help growth These XXXX. expect call

amortization per ago Thank you, million $XXX.X or versus period. everyone. liabilities, of gallon share. Revenue Total Average in versus of lease representing year gasoline expense. or prices XXXX Andrew, approximately X% XX annum the they on per $X.XX per and debt $X.XX $XXX.X the through $XXX net in versus obligations current for $X.X was per billion the the paid operating good $X.X of remainder are income $XX the million is the EBITDA million, year per third Adjusted as sheet retail the which and balance $X.XX of ago versus was in $X.XX million billion, share billion million and as approximately period. term $XXX of was was $X.X captured September morning, loan quarter were long-term in reduction gallon

a revolving up CapEx repurchases leverage $XX $XXX quarter cash of $XXX that June facility of million figures positive from These clearly totaled approximately benefits $XX balance the lenders accretive undrawn. to at in and once as XX credit million, our Our again equivalents outstanding currently result had end gross of share Cash after cash $XX report is and free we million million, demonstrating of X flow business. X.Xx. our million adjusted and of

in earnings want also count release. Now the color the store I some to table add around

offer guidance, discuss I but the X million year-to-date. we grow our in their to brand, reach brand end want Quick where fuel guided closures conversation build full will allowing will with are XXXX to X You lease stores in strong the stores life, kick come and Andrew to nonfuel address $XXX likely going Quick expire. markets that closed the and In or between our and we and will were of is is location $XX Check ahead economics. totaling Tech which million we $XXX a of new quarter useful capital maintain stores go These the elements the represent spend, the notice better a below with million 'XX the during and year range. remaining for our off to better

into most to with the that, longer has spend and spend the over corporate as maintenance deferred to will experiencing stores expect carry call into over Andrew. are cycle I some and times our XXXX than XXXX. We of back anticipated new-to-industry turn initiatives now And project been

of guidance. Mindy. how XXXX great segue tracking against quick That's a review a Thanks, into we're

plan The let's up start So XXXX new-to-industry XX organic stores. growth. included with our to

have continues over to As able cycle past service the new Permitting we stores as not years, would to times for put X we construction has into projects new quickly lengthened as like. been supply be when to shortages Contractors our individual stores. an building challenges, face project labor a variety and issue chain for including as both as continue and constraints. of well opening we're developers

has also the issue utilities an in across at new Looking been line. getting finish stores

to quarter, into new and So taken in resulting the of together, will service Check Quick X XX be XX estimating for to the year, a are X that stores. we in put new total stores fourth XX includes new stores

will QX the with We year under with stores year. end X construction next of new another XX in beginning

the So of hopefully, lag some that experiencing. you we effect gives are sense

to land We to expect we into in impeding and would build expected stores schedule continue a expect XXXX. in as XXXX, Nevertheless, least to robust next these we grow like ambitious year. as activity fast and conditions to with pipeline at new maintain an ability XX XX largely XXXX accelerate to our open

foot and accelerate stores return potential were These dispensers, to with into expanded rebuilds. and or time, be fuel on we more helpful evolve allocation an over equally is in-store at we figure challenges rebuilds, reverse growth rates provide catch will able guidance knowing of above our raise XX in X,XXX capital matures new to a and direct Slight XX new as formats guided longer-term it an about basis. and to compelling our merchandise continue network think annual with capital our offer. include least have range basis, converting to that kiosks store growth we around think up to we boutique XXXX, square more stores. new While in on as trend projects opportunities is that up the up-to will This more offer which higher-margin

renovate in XX foot beverage are capital X,XXX customers early square strong, improved stores renovating stores XXXX. committing focusing are better on Additionally, that stages from pilot to Early in with a we to results redesigned of uptake just and interior our experience, we shopping our provides serve to better the offer. X is and food customer stores up a

to renovations more like you projects forward, part what store NTI in raise backfill with February in to we're the can an capital addition plans update we growth other will program, able investing and look on details our in of rebuilds being in more will in capital be our flex that that to with integral XXXX. also moving So and delays and

rebuild midpoint our about range. Fuel to a should SG&A remaining as guidance. of trending we OpEx expect the range, investments and be ahead above is above larger where guided continue Store year-over-year capability contribution year. stores volumes multiyear also elements approximating both we slightly guided and this schedule Turning of of slightly midpoint and making level our of the largely to are the of guided the of be X.X% increase, range, range. year we build midpoint trending the midpoint are Merchandise above guided also be trend above the we execution will on representing that expense are to next just the the dollars delivery.

Thank Our some guided retail CapEx improved just within to I'd at where happy a about say already you, Mindy, margins basis, to for just I'm keeping gallon. tax like running also close volumes volumes around program. on remains year tradition, shy insights range. of the rate the per XXXX $X.XX addressing of with prior October preliminary have with year-over-year In performance

lines start So momentum. significant with quarter in the are for open operational Operator? questions. excited we can enter are that, we off the great financial to and a With fourth to XXXX and up

from [Operation's Wells the of Instructions] question line with comes Bonadio first Anthony Our Fargo.

still benefit modest a I contribution. components you on PS&W about you've from supply just was And I little like a recent underlying it the think way tune think per wanted Can looks RBOB just $X.XX of about through down in the there? net to us talk gallon then margin bit to the quarters. to in right the that tightness, talked drill QX. in around know Is I it?

this maybe more So drove quarter. there upside on what just the

product Anthony, the the mostly expect, inventories reflective would us price that, to opposite prices business, at year resulted to those we this gains in able was last and the way direction low of of the the have fall, some Sure. in a volatility kind are year, given the Most of for we negative big of wholesale. account looked prices results, and in capture which supply of being where we direction the as impact we for of variances. inventory saw Conversely,

fluctuation as just mostly results product really, the on overall product quarter based quarter-to-quarter, of in So movement. in plant any price hostile the direction our

then Okay. but profit a cigarettes seems And worse support dig player. earned partly more in products out to and we've to shift little quantify frame least specifically from think recent dollars Is this players as weaker And there? just got us gross tobacco. sales narrative of have the at I seems be that you in capturing at on to is industry softened, just say there marginal about on can trends breakeven higher-margin transition? then do If we and it look wanted to or it like around going by doing I anything ongoing the that data, into also around offsetting help of there the fair marginal what's sort that alternative

Yes.

relative the Murphy larger grow and marginal to of... USA Traditional brands like paper terms continuing those the the cigarettes, take noncombustible guess, in products, chains et So and cetera. the players. I to share categories I see premium in to expect would combustible more smokeless,

combustible to in products that FDA is some by of may as get that many court, of paper the of were selling One market, smaller stay you not vapor operators things a are well there. being are And our by manufacturers lot selling responsible that I find And the approved localized those many having tobacco survey of not that if a you'll the and products we in with frustration as rural retailer I the an that of some products. that products. did know the even those the other has effect out be that on is products know of not illicit the sold of markets, been only

the marginal of means some to reverting tactics to that, as like unfortunately, of see you'll their sustain players unfortunately, So part profitability.

I that, particular as have Beyond know of I that's details not, issue at don't their insight tobacco though, much the Anthony. or you getting the were don't mix. into

from comes of question next Bienvenu. the your And line Ben

if the it year, sequentially lapping XX% which kind to despite I start, kind number a gains? was leading could, that the same-store the consumer talk So pricing last response X-year you're making things huge the gallons, the that forward? your want stickier around what basis, to from like X%. we you're The on looks in last favorable going productivity year. of kind you of your how a having new of on follow-up are growth accelerated a the you a just share seeing in X% up only led price that Can concert about to with baseline of consumers fuel down moves stores stack think informs similar despite fuel And

brunt and just value great consumer the us those incredible the I our continues customers when a member fill believe stores down Ben. look, But and a in of customers and price in get last environments, And experiencing high considering see we Drive we're up and into price this on kind I pressures now. remain volumes aren't Yes. that if we that sign benefits. got to X% expect price-sensitive a of last Murphy we environment. Thanks, inflationary segment high in believe they And price some there. that they I be stickiness They significant know, to look, those as the persistent. to of gains get were do the can It win consider look, service we like the year environments they right the become going would come a quarter, lower margin, that really think to X%, creates said, Rewards

as work they life. get low-price pain. like So pleasures for and don't retailers, in our discretionary. for They their products to they're feeling that And especially even in prices, simple our at still the I to everyday well where believe product ours need categories view lower bodes that

of and think to our continue just not that So I they speaks we in USA. can continue to more see to down pressures it And been customers is lot Murphy categories category, customers to premium as a well, where And fuel of customer we see time, for we just and the who customers discount it the trading their over face. look get of same how in panel mix period but categories a example. tobacco, and can other a how at new both we of shifts

as think we continue I to to a like see ours. these well interest I as we So see build volatility bodes up, rates, as we see are inflation just to think to pressures high going for continue business and continue it

Andrew, delivered kind the is comment, of I for question in the around margins piece that that at sort of during yet made a really, up reassessing margins the not forward of look margins new or And of kind there second equilibrium third following XXXX. of we headwinds think you prices quarter, midpoint if the look rising be was as we My you very the quarter through good, every to kind sequentially. RBOB reason on for

wondering, more willing do new that I'm year? something put around to you formally next Or to more so you'd range? are the is like And specificity

a margins because to to Well, basis. we're so dialogue as to maintaining range, we'll longer-term short-term conversations fuel sustainable the I specificity around on much just guiding going but go more think the to led back don't I it put many suggested think opposed

with of to to $X.XX down So we upper year basis end from of this of was the a by rising provide for so the do As year many from why why range. is market. are marginal the Slide Mindy up that range. that, the competitive in because sustainable, there wanting And range, bit kind more challenges analysis it to the seen stores, presentation, and may the of in we've the rational, investor consumers, and walk be the range that those volatility developed sudden, player type those especially X move to quickly prices did the of the some then to broader get that but markets. falling. was more The become a the a We a aggressive providing in right? highlighted Certainly, establish to influence top-of-mind We'll competitors it, as get that highlighted awareness When $X.XX ultimately new a regionally irrational. prices prices we that markets but that thought has, structure they're all we and high, into move prior on continue we little facing. when the factors of of new with a our varies build impact markets dynamic more the

in So there's there. so many variables

again, be going be more a to So to it in think high I'd provide but And to like it's suggested thoughtful the fortunately, on got to we the I'll of I a, admit range. wrong, hope were we But the $X.XX $X.XX as end. thoughtful range. on we range year. next

investors. short-term avoid we the focus discussions the margin So of with

next of And your line with Bobby from the comes James. Griffin question Raymond

driving hey, you was that a from negative. Is better the it same-store the might breakdown comparison in year. at XXXX? Andrew, Or great touch big opportunity that's look behavior or consumers a there very prior a to that's another that? on comparison really certain some Understanding against non-cigarette I modestly for sales guess, want just quarter. on do some in us first, little Congrats to just categories a I up went and in growth, opportunities say, good

that answer. on that's you rest make great that of X-year you've just Bobby, question. and a your a stack, could kind certainly, got if And

And beverage look was a I and but X%. Food down. basis. only that when we're give on up X-year As you a our up margin X% we not stack, basis, mean, stack, you center business. know, a on I'll X-year a complacent store at on an only X.X% up sales example on was

of, the execution and as midst And on about ahead of that of nontobacco so and I think are initiatives schedule the we they're including beverage. are in both terms as food focused in noted, I merchandise, delivery, big we and all

Some examples.

pricing. the the tobacco Quick got to the bottom great improvements done now SKU for already a line flow next year great. is work more to year.MDR is through center the Our made offers seeing We're going personalizing it the of with full we've way from We're results both production USA at that labor center and for now margin good done forecasting to will and optimization planning knows we store, a of The demand we've Check is and pricing along pricing we're than Murphy upselling. we've and much cost sophisticated in ever and really the flow Everyone before. that at a planning, store. that price applying fuel improve standpoint,

on we're doing doing at digital food better order Check, Quick job especially and with screens. customer the a beverage side the of that Now

Our the we've in grab-and-go of an We've food expanded space area. layout got The and campaign, has center for in-store experience adopted beverage Quick redesigned Check. been X more beverage store. lines selling from and the XX% dispensed

focus your really is XXXX. I results on, think improving to I good amount this that been point in expect and where and that's spot business, see part our the a on has So on of of significant year that

question Herzog. next comes from Your Bonnie of the line

GLP-X first, drugs. of is Bonnie lately maybe topic Huntley been discussion Herzog. a for has on Ethan This I guess

you seen your on So potential you consumer guess, drugs. curious sales to on And inside on these of sort could next, the you on or I the the could a use behavior in over implement growing sort category I'm your to a if impact any initiatives perspective? maybe have these potential hear of your impact of changes business thoughts from any your then traffic mitigate years? basket X XX say, impacts to either or from touch maybe

Yes.

to I tell. think it's early too way

curious maybe on let's your and can but about dynamic And had Okay. supply recently. on All a of right. if the provide diesel Got the of We've I that quarter. you come tight again. help quite fuel it. outline market during color maybe any a talk bit, can impact margins then you guess, volumes sort fuel more margins And

more you as focused more mean, versus focused, know, are diesel. I or we gasoline

said, strategy, home execution that continues for pressure was of persistent just part, an that the also August that that in a X were price the to Margins most really Andrew really impact, results. equilibrium, which margin function months our our really on drive we while and from a we July So which strong margins margin recover posting had more of and we structure to us, Friday, challenged cover had a September market as to but the the cost. moves to coming were into raise soft, able in quarter were the able against were little the on retailers, to separate

a certainly relatively And us which market we strategy is And course, just volatility, to cash equilibrium, we really, a have our continue will. significant market of environment. return able against earnings to strong to executing even allowing which would be in get that stable so if generate and we flow our at to that it's ever upside

to said, as as continue So right store quarter, at be fourth margins, by so in higher encouraged volumes much quarter. with the the we out at Andrew we year's and fourth traffic the look October our in into near in far last least

our for line on impact material a having bottom really not the least. diesel at results So

Yes.

on you to are truck. something out have truck to I or because mission requirements of or they other thing they're of driving diesel or that a vehicle, not field that, farm of drive a diesel I a switching the customers a think vehicle because gasoline is who ranch think Most an of about a oil our the the like have.

for them. really nondiscretionary purchase a So it's

our we're of good of supply has because kicked or well else tightness as helping season not volumes anything proprietary that's outages the off certainly out to terminals. ag and the in a start, having Fortunately,

an So or in on, way. business eye major keep any something you impacting negative the it's not but

next Tarlowe Jefferies. with your question of Corey comes the And line from

you next scale interior stores improved stores and the Firstly, and little to stores? redesigned beverage the that potential stores or with up you XX versus your that X and early believe Could bit had believe, Andrew, food I to what's with renovate stores I performance year. in piloting, different you're talk a that more these traditional these from you're seeing the mentioned about

Yes.

feedback of kind early so feedback you too or well staff. We're that. But performance customer data. month is a far, into from extremely so to as encouraging it's So the as give detailed

out we visiting leadership our teams those In X fact, are have of markets there in. teams the

how beverage beverage store is of is food was feedback got our where store. food in offer the the part strategy the we presented the So organized, is and and around

you'll the where front. to in grab the at store walk it if see closer so was the now, go you And versus and back of

not of the the that's look we reheat wasn't to store and put on By you've was as open, the the grab-and because keep got to a transparent looks like because things One was -- area that dark, the do front to sense. prepare a the as good shading larger. all Customers I windows the didn't it moving back, had windows that's in in perceived more refrigeration of if counter store a kind stable. shading significantly lift the the it it from hey, on

was had I you small before one that microwave low. down think

X up got on Now a larger counter. you've ones

lanes to took was And in get are people We customers using They on ever supposed lane. about and were a the they before. set items I all And queuing more than an at exactly are customers way. it. for lined to, that stores in highly QuickChek sell weeks like that's impulse to feature to one couple Queuing like there that Monday were opportunity and had up of of the up that more X successful. trialed it used so we

around them. it's largely condiments better with space right dispensed positioned those what So a or for the the and go USA that and regional standpoint beverage bean grab and food from to with reheat to beverage, win them to add a better customers and coffee items. best It's is the Murphy that the condiments grab the the cup for Similarly, and centered national coffee the are with which it's go has to re-locating brands. because

overall layout But better a experience. just now it's flows the So better.

earth-shattering we adds store, isn't examples look, again, lanes, some queuing both for then year. be selling the of singles which just and there see well. are over to space. of customers it our that the opens many for again, got the to But associates of sight kind this And the findings. in up able as of highly safety You've then store innovative initiatives And can the hit of line more the a so like from

one, from to, of all learnings building which stores And into tomorrow and it this our opportunity X,XXX have square first, address and we'll year, be enhances our the so then further. in store store research foot work consumer strategy that we takes the next that all existing the we call a format

Very I up. wanted great. helpful. follow to That's then And just

an I you additional think wondering was what improvement. your any seen in on had you've provide or I the context as to drove if you could color remarks, that early mentioned in Northeast. improvement prepared that

bit we've frozen surprise what more of factors. and in I picked It's see York improved there or a across QuickChek And et margin Look, Yes. have as energy Check, just really some standpoint to seen not had Quick see I parts then those our provide other but with was prior weaker meaningful spending. much now volume traffic which particular. has no drink a summer. from variety then our in Giants on think of cetera, the look traffic, it anyone New the data, services in innovative business. has where data impact subs, sales helped as our Northeast we a insights up et a have other improved, little environment quarters. we only the various consistent some concepts, that launch We of the food activity over for promotional the broader some not as margin with of demand our It's markets, cetera, that vary that on that and believe consumer industry

are no back time. you. there to this Clyde. questions I'll further call Andrew over at turn And the

Great. Well, thanks, for in. everyone, tuning

truly have forward our of update. opportunities front us these updates to look about and towards the to we provide value all we said, excited next We're in I As to forward journey our on look long-term creation. opportunities that

conference you. this And call. concludes Thank today's

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