Yesway (YSWY) Goldman Sachs Global Consumer and Retail Conference summary

Business overview and growth strategy

• Operates 450 convenience stores across nine states, focusing on recession-resistant, essential retail with a strong emphasis on data-driven decision-making and technology adoption.

• Growth achieved through selective geographic expansion, targeting regions with favorable regulatory environments and high fuel margins, primarily in the Midwest and Southwest.

• Completed 27 acquisitions since 2015, including the significant Allsup's transaction, and raised $820 million in capital.

• Maintains a value-oriented food service platform, with the Allsup's Burrito as a flagship product, and leverages a highly efficient labor model.

• Plans to open 130 new stores over the next five years, primarily through a capital-light build-to-suit program, while also pursuing targeted acquisitions.

Industry drivers and operational performance

• Convenience store industry is location-bound, with 85% of U.S. fuel sold at c-stores, providing a defensible position against e-commerce.

• Food service is a key differentiator, with 24 million burritos sold annually and a focus on destination food offerings.

• Fuel margin is a major EBITDA driver, benefiting from structural industry changes and higher diesel mix, with diesel accounting for 38% of total fuel sales.

• Same-store fuel volumes rose 1.4% in Q2, supported by new store ramp-ups and operational initiatives like pump health analytics.

• Inside sales remain positive despite macro pressures, aided by a value positioning and loyalty programs targeting high-spending diesel customers.

Product and merchandising initiatives

• Ongoing SKU rationalization and menu optimization, with two items accounting for 50% of food service sales.

• Private label products represent 9% of inside sales, with plans to expand in select categories such as automotive fluids.

• Other tobacco products, including vape and pouches, are offsetting declines in cigarette sales and delivering higher margins.

• Testing new store formats (3,900 sq ft) and merchandising strategies, such as relocating dispensed beverages to the front of stores.

• Focused on maintaining affordable pricing for core items, especially the Allsup's Burrito, with minimal price increases.