Arko advances transformation through ‘multi-year’ store conversion plan

The company expects to achieve 100 additional store conversions and open new-to-industry locations in 2025.

Arko Corporation revealed its fourth-quarter and full-year financial results for 2024, outlining its continued efforts to reshape its business model through store conversions, strategic investments, and operational optimizations.

The company reported a net loss of $2.3 million for the quarter, compared to a net income of $1.1 million in the same period the previous year. For the full year, net income stood at $20.8 million, down from $34.6 million year over year.

However, Arko continues to focus on its multi-year transformation through a dealerization program, which saw the conversion of 153 retail stores to dealer sites in 2024. These include 100 stores in the fourth quarter alone.

The company expects this shift to yield an annualized benefit of $8.5 million in combined wholesale and retail segment operating income.

Arko plans to continue this transition in 2025, with 100 additional store conversions scheduled for the first quarter and a commitment to converting a “meaningful number” of additional locations throughout the year.

The company is also investing in new-to-industry stores, expanding its pipeline to eight locations, with two stores opened in 2024 and two more in the first quarter of 2025. The remaining four new stores are expected to launch later this year.

At full scale, Arko expects its channel optimization strategy to deliver a cumulative annualized operating income benefit exceeding $20 million.