Yesway's Record Quarter: Diesel, Burritos, and a Bold Guidance Raise

Cost of fuel volatility and foodservice strength drive 35% EBITDA growth and a $25M guidance increase.

YSWY · Earnings Call · 2026-08-13

A Quarter of Records

Yesway delivered its strongest quarter ever, with Fuel margin per gallon surging 27.4% to $0.526, fueled by elevated price volatility and a growing diesel contribution. Total fuel sales rose 52.7% to $673 million, while same-store gallons gained 1.4%. Inside merchandise sales also grew 4.4% (1.2% same-store). Store contribution jumped 29.5% to $88 million, driving adjusted EBITDA to $71 million, up 35% year-over-year.

Tom Trkla, CEO, emphasized the breadth: "We set new records across several of our most important operating and financial measures, including fuel gallons, fuel gross profit, inside merchandise sales, inside merchandise gross profit and store contribution."

we have not touched the golden goose, which is our burrito... we see a continued differentiation in pricing value between our mainstay product and our competitors.
Thomas Trkla, Chairman, President and Chief Executive Officer · 2026-08-13

The Power of Diesel and Burritos

The company's structural advantages are coming into focus. Diesel now represents roughly 38% of fuel volume, versus the NACS average of 27%, and these customers spend over 3x more inside. The foodservice platform, anchored by Allsup's iconic burrito, remains a key differentiator. That pricing power supports inside margins, which expanded 50 basis points to 35.7%.

Strategic Pivot: Focus and Growth

Yesway is sharpening its portfolio: it plans to sell 29 Iowa/Kansas stores to concentrate on core markets. At the same time, it's accelerating new builds in Arizona and other Southwestern states, targeting 6-8 openings in 2026. Management is also open to M&A, with capacity to reach 4x leverage for the right deal. The company raised its full-year adjusted EBITDA guidance to $235-245 million, up from $210-220 million.

Ericka Ayles, CFO, said on the raise: "We've increased our full year 2026 adjusted EBITDA guidance to $235 million to $245 million, up from our prior outlook of $210 million to $220 million, reflecting our strong second quarter performance." The guidance assumes fuel margins moderate to the low $0.40 range in H2. However, July is off to a strong start, with fuel margins around mid-$0.40 and same-store sales trending ahead of Q2.

Outlook: Riding the Volatility

While the company acknowledges the Middle East-driven fuel margin spike may fade, its new build program and diesel mix provide a structural lift. Ericka explained: "we do see CPG trending in line with inflation over the long term... our new builds are continuing to increase at a higher growth rate than our legacy portfolio." The company's focus on organic growth and selective acquisitions positions it well, even as fuel markets normalize.

Yesway's story is one of operational excellence meeting a favorable macro backdrop—record fuel margins, disciplined expense control, and a loyal customer base. The guidance increase underscores management's confidence, and the strategic pivot toward diesel and foodservice promises durable growth.