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Segment Reporting
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 14. SEGMENT REPORTING

We conduct our business in two reportable segments: 1) the wholesale segment and 2) the retail segment.

The wholesale segment includes the wholesale distribution of motor fuel to lessee dealers and independent dealers. We have exclusive motor fuel distribution contracts with lessee dealers who lease the property from us. We also have exclusive distribution contracts with independent dealers to distribute motor fuel but do not collect rent from the independent dealers.

The retail segment includes the retail sale of motor fuel at retail sites operated by commission agents and the sale of convenience merchandise and the retail sale of motor fuel at company operated sites. A commission agent site is a retail site where we retain title to the motor fuel inventory and sell it directly to our end user customers. At commission agent retail sites, we manage motor fuel inventory pricing and retain the gross profit on motor fuel sales, less a commission to the agent who operates the retail site. Similar to our wholesale segment, we also generate revenues through leasing or subleasing real estate in our retail segment.

Unallocated items consist primarily of general and administrative expenses, depreciation, amortization and accretion expense, gains on dispositions and lease terminations, net, other income, interest expense and income tax expense. Total assets by segment are not presented as management does not currently assess performance or allocate resources based on that data.

During the three and nine months ended September 30, 2025, respectively, we converted 13 and 37 sites from lessee dealer sites in the wholesale segment to company operated or commission agent sites in the retail segment, net. During the three and nine months ended September 30, 2024, respectively, we converted 11 and 106 sites from lessee dealer sites in the wholesale segment to company operated or commission agent sites in the retail segment, net, including 59 sites from the Applegreen Acquisition. See Note 2 for additional information.

The following table reflects activity related to our reportable segments (in thousands):

 

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

Three Months Ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

401,161

 

 

$

438,828

 

 

$

—

 

 

$

839,989

 

Revenues from food and merchandise sales

 

 

—

 

 

 

110,685

 

 

 

—

 

 

 

110,685

 

Rent income

 

 

11,274

 

 

 

3,893

 

 

 

—

 

 

 

15,167

 

Other revenue

 

 

1,221

 

 

 

4,785

 

 

 

—

 

 

 

6,006

 

Total revenues

 

 

413,656

 

 

 

558,191

 

 

 

—

 

 

 

971,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

385,443

 

 

 

398,096

 

 

 

—

 

 

 

783,539

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

78,704

 

 

 

—

 

 

 

78,704

 

Cost of goods sold - Rent expense

 

 

3,428

 

 

 

1,406

 

 

 

—

 

 

 

4,834

 

Gross profit

 

 

24,785

 

 

 

79,985

 

 

 

—

 

 

 

104,770

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

23,080

 

 

 

—

 

 

 

23,080

 

Maintenance and environmental costs

 

 

1,543

 

 

 

7,155

 

 

 

—

 

 

 

8,698

 

Other items (a)

 

 

5,358

 

 

 

20,405

 

 

 

19,142

 

 

 

44,905

 

Operating income (loss)

 

$

17,884

 

 

$

29,345

 

 

$

(19,142

)

 

$

28,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

Three Months Ended September 30, 2024 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

456,447

 

 

$

490,162

 

 

$

—

 

 

$

946,609

 

Revenues from food and merchandise sales

 

 

—

 

 

 

109,441

 

 

 

—

 

 

 

109,441

 

Rent income

 

 

13,477

 

 

 

3,461

 

 

 

—

 

 

 

16,938

 

Other revenue

 

 

1,244

 

 

 

4,931

 

 

 

—

 

 

 

6,175

 

Total revenues

 

 

471,168

 

 

 

607,995

 

 

 

—

 

 

 

1,079,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

439,577

 

 

 

444,403

 

 

 

—

 

 

 

883,980

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

78,947

 

 

 

—

 

 

 

78,947

 

Cost of goods sold - Rent expense

 

 

3,952

 

 

 

1,058

 

 

 

—

 

 

 

5,010

 

Gross profit

 

 

27,639

 

 

 

83,587

 

 

 

—

 

 

 

111,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

23,516

 

 

 

—

 

 

 

23,516

 

Maintenance and environmental costs

 

 

2,057

 

 

 

8,285

 

 

 

—

 

 

 

10,342

 

Other items (a)

 

 

6,485

 

 

 

20,423

 

 

 

23,364

 

 

 

50,272

 

Operating income (loss)

 

$

19,097

 

 

$

31,363

 

 

$

(23,364

)

 

$

27,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

1,166,520

 

 

$

1,256,162

 

 

$

—

 

 

$

2,422,682

 

Revenues from food and merchandise sales

 

 

—

 

 

 

308,085

 

 

 

—

 

 

 

308,085

 

Rent income

 

 

36,409

 

 

 

11,419

 

 

 

—

 

 

 

47,828

 

Other revenue

 

 

3,804

 

 

 

13,848

 

 

 

—

 

 

 

17,652

 

Total revenues

 

 

1,206,733

 

 

 

1,589,514

 

 

 

—

 

 

 

2,796,247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

1,119,873

 

 

 

1,145,461

 

 

 

—

 

 

 

2,265,334

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

220,685

 

 

 

—

 

 

 

220,685

 

Cost of goods sold - Rent expense

 

 

10,555

 

 

 

4,097

 

 

 

—

 

 

 

14,652

 

Gross profit

 

 

76,305

 

 

 

219,271

 

 

 

—

 

 

 

295,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

69,113

 

 

 

—

 

 

 

69,113

 

Maintenance and environmental costs

 

 

4,437

 

 

 

22,274

 

 

 

—

 

 

 

26,711

 

Other items (a)

 

 

16,755

 

 

 

61,785

 

 

 

49,627

 

 

 

128,167

 

Operating income (loss)

 

$

55,113

 

 

$

66,099

 

 

$

(49,627

)

 

$

71,585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2024 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

1,416,361

 

 

$

1,374,464

 

 

$

—

 

 

$

2,790,825

 

Revenues from food and merchandise sales

 

 

—

 

 

 

291,266

 

 

 

—

 

 

 

291,266

 

Rent income

 

 

44,123

 

 

 

9,836

 

 

 

—

 

 

 

53,959

 

Other revenue

 

 

3,238

 

 

 

14,778

 

 

 

—

 

 

 

18,016

 

Total revenues

 

 

1,463,722

 

 

 

1,690,344

 

 

 

—

 

 

 

3,154,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

1,368,249

 

 

 

1,263,380

 

 

 

—

 

 

 

2,631,629

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

209,480

 

 

 

—

 

 

 

209,480

 

Cost of goods sold - Rent expense

 

 

12,754

 

 

 

2,867

 

 

 

—

 

 

 

15,621

 

Gross profit

 

 

82,719

 

 

 

214,617

 

 

 

—

 

 

 

297,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

65,262

 

 

 

—

 

 

 

65,262

 

Maintenance and environmental costs

 

 

5,624

 

 

 

20,935

 

 

 

—

 

 

 

26,559

 

Other items (a)

 

 

19,009

 

 

 

57,789

 

 

 

86,489

 

 

 

163,287

 

Operating income (loss)

 

$

58,086

 

 

$

70,631

 

 

$

(86,489

)

 

$

42,228

 

(a)
For the Wholesale and Retail segments, other segment items includes real estate taxes, utilities, management fees, insurance and other operating expenses. For the Retail segment, other segment items also includes rent expense, store supplies and shrink. Other segment items that are not allocated to a segment include general and administrative expenses, depreciation, amortization and accretion expense and gains/losses on dispositions and lease terminations, net.
(b)
In connection with the retrospective adoption of ASU 2023-07, "Improvements in Reportable Segment Disclosures," we recast our results for the three and nine months ended September 30, 2024, to conform to the current year presentation.

 

A reconciliation from operating income to income before income taxes follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Operating income

 

$

28,087

 

 

$

27,096

 

 

$

71,585

 

 

$

42,228

 

Other income, net

 

 

152

 

 

 

197

 

 

 

418

 

 

 

604

 

Interest expense

 

 

(11,786

)

 

 

(14,169

)

 

 

(37,199

)

 

 

(38,918

)

Income before income taxes

 

$

16,453

 

 

$

13,124

 

 

$

34,804

 

 

$

3,914

 

Receivables relating to the revenue streams above are as follows (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Receivables from fuel and merchandise sales

 

$

33,421

 

 

$

30,115

 

Receivables for rent and other lease-related charges

 

 

1,151

 

 

 

2,122

 

Total accounts receivable

 

$

34,572

 

 

$

32,237

 

Performance obligations are satisfied as fuel is delivered to the customer and as merchandise is sold to the consumer. Many of our fuel contracts with our customers include minimum purchase volumes measured on a monthly basis, for which our performance obligations are satisfied as services are rendered. Receivables from fuel are recognized on a per-gallon rate and are generally collected within 10 days of delivery.

The balance of unamortized costs incurred to obtain certain contracts with customers was $9.6 million and $8.9 million at September 30, 2025 and December 31, 2024, respectively. Amortization of such costs is recorded against operating revenues and amounted to $0.5 million for each of the three months ended September 30, 2025 and 2024 and $1.6 million and $1.4 million for the nine months ended September 30, 2025 and 2024, respectively.

Receivables from rent and other lease-related charges are generally collected at the beginning of the month.