YSWY

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 8:30 a.m. ET Investor Relations representative-Nicole Harlow Chairman, President and Chief Executive Officer-Thomas N. Trkla Chief Financial Officer-Ericka Ayles Operator: Welcome to the Yesway, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised today's conference call is being recorded. I would now like to turn the call over to Nicole Harlow, Investor Relations representative. Please go ahead. Nicole Harlow: Thank you, operator, and thank you all for joining us today for Yesway's Second Quarter 2026 Earnings Conference Call. On with me today are Tom Trkla, Chairman, President and Chief Executive Officer; and Ericka Ayles, Chief Financial Officer. Before we begin, a reminder that today's discussion will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements made today are based on management's current expectations, assumptions and beliefs about our business and the environment in which we operate. These statements involve known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements to differ materially from what is expressed or implied. These risks include, but are not limited to, volatility in global oil prices, general economic conditions and our ability to execute on our growth strategy and changes in consumer demand and consumption -- fuel consumption trends. For a detailed discussion of risks, please see our final prospectus dated April 21, 2026, as filed with the SEC on April 23, 2026, and our other filings with the SEC. Our forward-looking statements made on this call represent our outlook as of today, August 13, 2026, and we disclaim any obligation to update these statements, except as may be required by law. In addition, during this conference call, we will refer to certain non-GAAP financial measures, including adjusted EBITDA and store contribution. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in our second quarter 2026 earnings press release, which was issued earlier this morning and is available on our Investor Relations section of our website. A replay of today's call will also be available on the same website shortly after we conclude the Q&A session. And with that, I'd like to turn the call over to Tom Trkla. Tom? Thomas Trkla: Thank you, Nicole, and good morning, everyone, and thanks for joining us today. We are pleased with the strong performance we delivered in the second quarter, and I look forward to discussing our results and the progress we are making on our growth priorities on today's call. First, I want to remind everyone what makes Yesway fundamentally different and why we believe our platform is well positioned for continued growth. Since our founding more than a decade ago, we built a distinctive convenience retail platform around a combination of trusted regional brands, destination foodservice, disciplined real estate development, differentiated fuel offerings and an award-winning loyalty program. Today, Yesway is one of the fastest-growing convenience store operators in the United States and the nation's 15th largest convenience store chain. Our portfolio is anchored by 2 powerful and highly complementary brands, Yesway and Allsup's. Both continue to have deep roots in the communities we serve, strong customer recognition and enduring loyalty. This local connection is difficult to replicate and provides us with an important competitive advantage, particularly in the rural and suburban markets where we operate. We are also much more than a convenience stop for fuel and everyday necessities. In many of our markets, we are a true foodservice destination. Allsup's iconic world-famous Beef and Bean Burritos, together with our broader prepared food and proprietary merchandise offerings remain a compelling reason for customers to visit our stores frequently and distinguishes us from the traditional fuel-oriented competitors. Our foodservice platform drives traffic throughout the day, supports attractive merchandising margins and strengthens the relevance of our brands. Our deep real estate expertise represents another significant differentiator. We've assembled and built a portfolio of strategically located stores across the Southwest and Midwest, often situated on oversized parcels with strong visibility, convenient access and favorable traffic patterns. These sites provide the capacity to expand our forecourts, add dedicated high-flow diesel lanes and introduce larger format stores with enhanced foodservice and merchandise offerings. This real estate advantage also supports our fuel strategy. Greater diesel capacity enables us to serve both local customers and over-the-road professional drivers, broadening our addressable market and increasing fuel volumes. Diesel demand also tends to be less price sensitive during periods of elevated fuel prices, providing an additional measure of resilience in volatile market environments. Taken together, our trusted brands, destination foodservice platform, strategically advantaged real estate, growing diesel exposure, strong customer loyalty and proven operating capabilities form an integrated platform that is both differentiated and difficult to replicate. We believe these advantages will continue to drive repeat visits, attractive store-level economics and sustainable long-term value for our shareholders. Turning now to our second quarter performance, which was the strongest quarter in our company's history, reflecting broad-based execution across both fuel and inside merchandising. 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. This operating momentum drove adjusted EBITDA to $71 million, an increase of 35% year-over-year. The most important takeaway is that these results were not dependent on any single factor and that the quality of the quarter was as strong as the headline results. We grew both fuel volumes and inside merchandise sales while expanding margins and generating greater profitability. These results underscore the strength and breadth of our platform, the advantages of our differentiated market positioning, the resilience of our business model amid continued inflationary pressures and volatile fuel markets and the disciplined execution of our team. Let me highlight several key aspects of our second quarter's performance. Same-store inside merchandise sales increased 1.2%, marking positive growth in 18 of the past 19 quarters. Excluding the 29 stores in our Iowa and Kansas portfolio, which we expect to close the sale of by year-end, same-store merchandise sales increased 1.5%. Same-store fuel gallons increased 1.4% year-over-year. And again, excluding the 29 stores in our Iowa and Kansas portfolio, same-store fuel gallons sold increased 1.8%. According to OPIS data, the change in our same-store fuel gallons sold significantly outperformed the change in volume per outlet in our core markets, which we believe is a clear data point we are gaining market share while also delivering stronger margins. Our value proposition continues to resonate, and we remain competitive in the communities we serve. Total fuel margin per gallon increased 27.4% year-over-year to $0.526 per gallon, driven by elevated fuel price volatility, increasing margin spreads between diesel and gas and continued mix shift toward diesel. Importantly, we achieved this margin expansion while also growing volume. Robust store contribution supported adjusted EBITDA growth of 35% year-over-year to $71 million. On the strength of our second quarter performance, we are raising our adjusted EBITDA outlook for full year 2026, which Ericka will discuss later in this call. Our growth strategy remains disciplined and focused on 3 priorities: developing new stores, increasing the productivity of our existing store base and pursuing selective value-accretive acquisitions. Starting with new store development. We have now built 92 stores since 2020 through our new-to-industry store developments and raze and rebuild programs. This experience, together with our real estate experience, enables us to identify the markets, sites and formats with the greatest potential to generate attractive store-level returns. During the second quarter, we opened 1 new store, bringing our total store count to 450. We remain on track to deliver our outlook of 6 to 8 stores in 2026. As a reminder, today's reported store count includes the 29 stores in our Iowa and Kansas portfolio that we have agreed to sell as part of our strategy to sharpen operational focus, simplify our supply chain footprint and reinforce our concentration in core operating markets. We are pleased with the progress on this transaction and remain on track to close the sale by the end of 2026. Looking ahead, our new build expansion strategy is currently concentrated on 4 core states: Arizona, Oklahoma, New Mexico and Texas, with Arizona being a key near-term development priority. Arizona is a natural extension of our Southwestern footprint and offers attractive fuel market dynamics, meaningful development opportunities and strong receptivity to our foodservice offering. We believe our operating model is particularly well suited to the state's rural and suburban communities, and we are encouraged by the momentum we are building as we advance our pipeline of new locations. Beyond new store development, we see opportunities to generate additional growth and improve returns across our existing store base. Our organic growth initiatives are centered on 2 principal areas: expanding our fuel capabilities and strengthening our merchandise and foodservice offerings. Together, these initiatives are designed to increase customer traffic, deepen loyalty, grow same-store sales and improve store level productivity over time. In fuel, we are upgrading dispensers, adding new dispensers and adding new diesel capacity across many of our existing locations. Our newer stores feature expanded forecourts and dedicated high-flow diesel lanes, supporting growth in commercial diesel. These efforts drive total fuel gallon growth and continue to drive mix shift toward diesel, which now represents approximately 38% of our total fuel volume compared to the NACS average of 27%. Within inside merchandise, foodservice remains one of our most important traffic drivers and competitive differentiators. The iconic Allsup's Burrito remains the cornerstone of our offering and continues to drive customer traffic and repeat visits. We are also rationalizing our lower-velocity foodservice SKUs to reduce complexity, simplify store level execution, improve product consistency and concentrate our resources on the products that resonate most strongly with our customers. At the same time, we continue to evaluate opportunities to innovate and selectively expand our foodservice offering. Within private label, we are expanding our higher-margin offerings in categories where we can provide customers with a compelling combination of quality and value. These products strengthen our overall value proposition and complement our broader assortment of freshly prepared food, grocery items, beverages and snacks, enable us to meet a wide range of customer needs throughout the day. Our third avenue for growth is selective accretive M&A. Since our founding, we have demonstrated our ability to source, integrate and create value from M&A, having acquired more than 400 convenience stores through 27 transactions and establishing a strong foundation of experience and operating capabilities that we can apply to future opportunities. We continue to evaluate acquisition opportunities that increase our density in existing markets or extend our brand portfolio into other strategically attractive markets. Continued fuel margin strength has supported significant cash generation, increasing our financial flexibility to fund our organic growth initiatives and pursue acquisitions when compelling opportunities meet our disciplined investment and return criteria. With that, I will now turn the call over to Ericka, who will provide a more detailed review of our second quarter results and updated full year financial outlook. Ericka? Ericka Ayles: Thanks, Tom, and good morning, everyone. As Tom mentioned, we delivered another strong quarter, including record performance across several key measures. Inside merchandise sales increased to $240 million, representing growth of 4.4% year-over-year or 1.2% on a same-store basis. Excluding our Iowa and Kansas portfolio, same-store inside merchandise sales growth would have been 1.5%. Despite higher fuel prices resulting in modestly lower traffic, according to Nielsen data, we gained share in both merchandise sales and units, demonstrating the strength of our value proposition and customer loyalty. We continue to deliver inside merchandise margin expansion versus prior year. Total inside merchandise margin expanded by approximately 50 basis points to 35.7% from 35.2% in the prior year period as a result of the continued store growth and the pricing actions taken during 2025. On fuel, sales increased 52.7% year-over-year to $673 million. Fuel margin was $0.526 per gallon compared to $0.413 per gallon in Q2 last year. This increased margin was supported by our structural advantages in diesel and the benefits of elevated fuel price volatility during the quarter. Same-store fuel gallons sold remained resilient despite higher fuel prices and continued fuel market volatility, increasing 1.4% year-over-year during the quarter. Excluding our Iowa and Kansas portfolio, same-store gallons sold would have increased 1.8% year-over-year. Our gallon growth was driven by diesel contribution at our new-to-industry builds, while our legacy store gallon growth was supported by operational initiatives, including dispenser change-outs and fuel expansions. Notably, as Tom mentioned earlier, the change in our same-store gallons sold outperformed the change in volume per outlet in our core markets. During the second quarter, diesel represented approximately 38% of total fuel volume. Our diesel mix is meaningfully higher than that of many traditional convenience retailers, reflecting our rural and suburban footprint and presence along commercial and regional transportation routes and our intentional focus to increase diesel gallons across our footprint. Our focus on the diesel platform also benefits inside merchandise sales as fleet drivers purchase more than 3x as much inside the store on average as our typical loyalty customer. As discussed on our last call, geopolitical developments in the Middle East continue to create elevated fuel price volatility, resulting in higher fuel margins. While we recognize that this incremental benefit may moderate, Yesway has historically generated CPG margins above broader market levels. And we believe our favorable diesel mix, strategic footprint and supplier relationships position us to sustain attractive fuel profitability as market conditions normalize. We achieved total same-store fuel and inside merchandise gross profit growth of 14% year-over-year, with same-store fuel gross profit and same-store inside merchandise gross profit increasing 29% and 2.5%, respectively, from the prior year. We continue to be disciplined on the management of store level expenses. Same-store operating expenses increased by 4.8% year-over-year, primarily driven by credit card fees, which accounted for approximately 96% of the increase. Same-store labor hours declined 2.4% during the quarter, marking the fifth consecutive quarter of reductions while maintaining high operating standards and supporting the customer experience. The standardized process, employee training and leading technology we have established across our store base allows certain locations to operate with a single employee during non-peak hours. Store contribution increased 29.5% year-over-year to $88 million. The increase was primarily driven by the increase in fuel margin and inside merchandise margin from same-store sales and increases in fuel gallons and inside merchandise sales from new stores. Net income was $30 million compared to $24 million in the prior period. Adjusted EBITDA increased 35% year-over-year to $71 million, reflecting similar drivers as store contribution. As a result, we are increasing our adjusted EBITDA outlook for the full year, which we will touch on shortly. During the quarter, we opened 1 new store, ending the period with 450 stores. As a reminder, our reported store count still includes our Iowa and Kansas portfolio. Turning to the balance sheet. We ended the quarter with cash and cash equivalents of $82 million and total debt, including financing obligations and financing lease obligations of $618 million. Net cash provided by operating activities was $57 million compared to $36 million in the prior year period. Capital expenditures totaled approximately $24 million compared to $22 million in the prior year period. As Tom discussed, our strong operating performance and cash generation provide us with flexibility to deploy capital consistent with our key priorities: number one, investing in organic growth; number two, maintaining a strong and flexible balance sheet; and number three, selective and opportunistic M&A. Our first priority is investing in high-return organic growth opportunities. Our cash position gives us the capacity to accelerate select new store remodel, foodservice and technology investments where we see compelling returns. Our second priority is maintaining a strong and flexible balance sheet. Through June 30, 2026, we have repaid $40 million of debt, including $10 million repaid with IPO proceeds. Our third priority is selective and opportunistic M&A. The convenience store industry remains highly fragmented, and we continue to evaluate acquisition opportunities that increase density in existing markets, expand our presence in attractive geographies and strengthen our brand portfolio. We will remain disciplined and intend to deploy capital only where we see compelling risk-adjusted returns. Turning to our outlook. Our full year expectations reflect a strong first half performance, continued operating momentum and our current expectation for the remainder of the year. 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. While we do not provide a fuel margin forecast as this is difficult to predict, particularly in volatile markets, our outlook for adjusted EBITDA assumes that fuel margins moderate in the low $0.40 per gallon range for the second half of the year, consistent with our historical average. We have also reaffirmed our outlook for the following metrics: same-store inside merchandise sales growth of 1.25% to 3.25% and capital expenditures of $85 million to $95 million. With respect to new stores, we continue to expect to open 6 to 8 new stores in 2026, inclusive of the 2 stores we opened during the first half of the year. As a reminder, our guidance assumes our Iowa and Kansas portfolio sale is completed by year-end. While a sustained period of elevated fuel prices may add some pressure to the inside merchandise sales in the near term, incremental cash generation from higher fuel margin would support acceleration of our growth investments while maintaining our strong balance sheet, positioning us well for the long term. The convenience store industry is essential and has experienced consistent growth for decades. It has proven resilient through challenging macroeconomic periods, including recessions, financial crisis and the COVID pandemic, and we remain confident in the long-term growth opportunities that lie ahead. Overall, we are pleased with the performance through the first half of 2026. We continue to generate strong cash flow, reduce leverage and invest in the long-term growth of the business. And with that, I'll turn the call back over to Tom for closing remarks. Thomas Trkla: Thank you very much, Ericka. To close, we are excited to report another quarter of strong performance, reinforcing the momentum in our business. As we continue to strengthen our differentiated offering, strong service culture and disciplined approach to capital allocation, Yesway is well positioned to continue delivering long-term value for our shareholders. Thank you again for joining us today. Operator? Operator: [Operator Instructions] Our first question comes from John Heinbockel with Guggenheim Securities. John Heinbockel: Tom, I wanted to ask, how do you look at M&A versus NTI as priorities or preferences? I know valuation probably plays a role. And then what's the gating factor? You have more capital, real estate is available, the organizational gating factor on growth because obviously you want to be disciplined in that regard. Thomas Trkla: Thank you. Great question. As you all know, for historical context, we started in the first 5 years by buying 27 M&A transactions. In the last 5 years, plus or minus, we've been building. The biggest change is we're now looking to do both. So we're much more active right now in terms of M&A opportunities. The simple answer to your question about which one we choose is really mathematical. We're targeting 15% unlevered and achieving 50% unlevered IRRs on our new builds without the build-to-suit platform and upwards of 30%, in some cases, higher on the build-to-suits. We're looking at both right now in the quarter. And I guess the biggest change from our past 5 years is we're now much more active in terms of looking at accretive M&A. And the last point I'll make to reemphasize that, which we discussed last call, we're really concentrating on 4 states: Arizona, Texas, New Mexico and Oklahoma. And we believe our entire outlook guidance for new stores, which, by the way, you recall, is only new builds. It includes no M&A in terms of our 5-year forecast is all in those 4 states. So we feel very confident. We've increased the number of opportunities for both. And as we'll talk about later, we feel very confident about hitting the 130-store target that we have in our model. John Heinbockel: Maybe my follow-up, where do we stand with the loyalty program, right? Because I know that's been growing, usage has been increasing. And what is the inside comp opportunity, right, to move those members kind of up the loyalty path? Ericka Ayles: Great question, John. Loyalty has been fairly steady in the second quarter. I think the opportunities that we see are really about how do we convert those loyalty customers from fuel into the store on a more strategic basis. So that's something that the team is working on today. As far as a penetration standpoint, as I mentioned, that has been fairly steady. Some of the gains that we've seen have been in the professional driver tier. As we mentioned in our prepared remarks, those driver -- the professional driver tier is typically spending about 3x more in the store. So we think that continues to be a great opportunity as we attract more of those customers. Operator: Our next question comes from Seth Sigman with Barclays. Seth Sigman: Nice quarter. I wanted to ask about the customer and whether you've seen any change in behavior over the last few months. And specifically, I'm looking at the 1.2% inside comp, I guess, 1.5% adjusted. It moderated a little bit from Q1. I think Q1 was maybe around 2.5% if we adjust for the weather. It's all pretty similar on a 2-year basis. So it seems steady. But anything else you can tell us about just behavior and any changes you've seen in the customer? Ericka Ayles: Great question. So we did see modestly lower traffic in the second quarter on a year-over-year basis. What we have seen in July is same-store inside merchandise sales trending slightly ahead of Q2. So we feel very good about where we stand in that guidance. As far as behavior potentially trading down, we're actually not seeing any meaningful trading down inside the store. We see a little bit here and there, but really nothing that's moving the needle. Similarly, on the fuel side of the business, we have positive gallons in July. We are seeing very slight trading down from premium to mid-grade at the pump. But obviously, that margin expansion is more than making up for that differential. So we're actually not seeing a tremendous amount of behavioral shift other than I did mention that modestly lower traffic. Seth Sigman: Okay. Very helpful. And then my follow-up is around pricing. So I think you rolled out some price changes late last year, early this year. Can you just elaborate on that? What's been the response from the customer? And then how do we think about sort of the next iteration and anything else as it relates to the pricing strategy? Ericka Ayles: Sure. Yes. From a pricing standpoint, we did take some price in 2025 and some price in early 2026. The reaction from the customer has been very positive. Those have worked out tremendously well for us. We -- I think I mentioned on the last call, we were very strategic about what we moved and what we didn't. So that has been going from my perspective, very well. The other thing I would point out is early 2026, some inventory resets that have gone on have also proved very well received as far as shifting some of that SKU optimization that we mentioned, really highlighting and focusing on what those -- what the consumers are reaching for and moving out those items that they're not. So we feel very good about that. Thomas Trkla: And if I may, Ericka, one of the things we -- Ericka mentioned before is strategic, it's very important to note, we have not touched the golden goose, which is our burrito. We're selling, as you know, about 24 -- a little over 24 million a year right now. And we see a continued differentiation in pricing value between our mainstay product and our competitors. And we think that's largely a driver as well for a lot of our demand inside. And so when Ericka is strategic, we looked at the last couple of years where we didn't take prices, we're certainly reacting to increases from our suppliers on an ongoing basis. But this is a proactive move that we made, but it was very, very carefully implemented. And we've seen very good results from, as Ericka said, but we're not touching. We're seeing a further gap between our burrito and its price point with our mainstay product, and we don't look at doing that anytime in the future. Operator: Our next question comes from Bobby Griffin with Raymond James. Robert Griffin: Congrats on a good second quarter. Tom, I guess I want to start with your comments on the menu optimization and something you guys have talked about before, but can you maybe expand a little bit on where you are in that journey? Is that something that's currently already complete or will be complete by the end of the year? And then some of the savings from that, what is some of the plans for that, if that's further pricing or if there's new items to come once you kind of rationalize the menu of where it's at? Just curious, anything around there? Thomas Trkla: Sure. It's an ongoing process. It will always be an ongoing process, but the bulk of what I'm trying to accomplish now will be done by year-end. It's basically looking at things where we don't sell a lot of. And as I said, we sell 41 million proprietary products, about 24 million burritos, and so we are basically limiting the price book options on these things and concentrating on those things we sell the most of. So that's ongoing right now. It's not a major lift, by the way. It's not like we sell 1 million things cutting down to a few. But it's cleaning up those things that we really don't need to have in the menu because we don't sell a lot of. We did replace a price book manager who's done a spectacular job. And as I think we've talked about in the past, we also inherited an accumulated price book through all the M&A deals. We completed that project as well. And so that's now done. So we now have the back end now set up to be able to handle these things. And then next, we also -- and we talked about this, which is very important. We believe one of our primary differentiators is our labor model, 2.6 employees per store to sell those 24 million burritos. So we advanced foodservice, and we'll talk probably later about private label, we say that we're at the margin. So we're not completely changing our foodservice platform, but we are ideating some of the things right now that are accretive and additive around our burrito platform. And we also expect to have something new, again, not major, but something new in the fourth quarter and then continuing to roll out things into 2027. Robert Griffin: Very good. That's helpful. And then I guess just secondly, for my follow-up, just back to your discussion about M&A and looking at some of the opportunities and kind of you guys are open to either organic or the M&A side. Where is the comfort level on leverage for the right deal that you would feel fine taking the business to help us kind of level set the models? Thomas Trkla: Sure. We had that question, and we've actually had some input from some of our bankers recently. And Ericka, correct me if I'm wrong. But right now, we're obviously very good right now. Ericka has now paid down or we've paid down now, almost depleted our revolver right now. We're down about $40 million down to, I think, $140 million of available capacity on our revolver and Ericka has about $90 million of cash. So sitting about $0.25 billion of liquidity and we think we probably could go to as high as 4x. Is that right, Ericka, for the right acquisition and then bring it back down? That's what we've been advised. Ericka, I don't know if you want to add any to that. Ericka Ayles: Sure. Yes. I think any increase in leverage would obviously be temporary for an acquisition. And what Tom is talking about would be to the extent any larger acquisition came our way, some of these tuck-in acquisitions that would be looking at really would have no impact to leverage if any -- it would be cash off our balance sheet, obviously, and no additional debt. But what we're talking about is to the extent the large acquisition came our way that we believe would be accretive, but nothing on the table to talk about today. Operator: Our next question comes from Simeon Gutman with Morgan Stanley. Uriel Zachary Abraham: This is Zach on for Simeon. Great quarter. I just want to follow up on the merch comps question. Yes, of course. So following up on the merch comps, are you willing to share whether traffic is positive? And do you expect sequential improvement in traffic through the balance of the year? Ericka Ayles: Sure. Yes. So from Q2, we did have modestly lower traffic in Q2. For July, I don't have traffic information available to share. But what I can tell you is same-store inside merchandise sales were growing in July, slightly ahead of where Q2 landed. So we feel very good about that. And then did you catch the fuel information as well, Zach? Do you want me to repeat that? Uriel Zachary Abraham: Sure. That would be great. Ericka Ayles: Sure. Yes. So July, again, positive fuel gallons in July. And I can just give you an indication of fuel margin for July remains elevated in sort of the mid-$0.40 range. Uriel Zachary Abraham: Okay. That's helpful. And then I wanted to ask also on new store productivity. It does look like you're making some great progress there. So just curious how we should think about the sustainability of new store productivity and the strength there. Ericka Ayles: Sure. What we do see is our new builds are continuing -- even when they come into the same-store comp set, they're continuing to increase at a higher growth rate than our legacy portfolio. As I mentioned in the prepared remarks, we are seeing some great comps on the legacy portfolio as well from some of the levers that we've been pulling. So one of the biggest factors there are some of the fuel projects that we've been working on, so fuel expansions, dispenser upgrades and replacements, et cetera. Operator: Our next question comes from Bonnie Herzog with Goldman Sachs. Ethan Huntley: This is Ethan Huntley on for Bonnie. So you raised your EBITDA guidance today, which was nice to see. But if our math is right, I think it implies just 3% growth at the midpoint in the back half of the year versus 60% plus growth in the first half. I recognize the year-on-year comps become a bit more challenging and guidance implies that fuel margins are likely to step a bit lower in the back half. But is there anything else sort of underpinning the growth in the second half? Or is there maybe just a bit of conservatism baked into your guidance? So essentially, just trying to understand sort of the major puts and takes of your guidance heading into the back half of the year. Ericka Ayles: Thanks for the question. So for our guidance, we are assuming, as I mentioned, low $0.40 CPG for the back half of the year. We will not try to underwrite any elevated fuel margin in this environment. So obviously, to the extent that the outperformance on fuel margin continues into the back half, that would be the opportunity there for the potential upside. As you do know, Q4 of '26 (sic) [ '25 ] was a really great quarter, strong fuel margin. So certainly not trying to be overly conservative but just recognizing fuel margin projections in the second half of the year will be quite difficult to predict. Overall, we feel really great about what we're seeing so far in the third quarter, as I mentioned, positive gallons, positive same-store. And as I mentioned, July same-store inside merchandise sales is actually trending better than what we saw in the results of Q2. So we feel very good about the opportunities ahead of us. But again, I think the fuel margin will be the question for the second half. Ethan Huntley: Got it. And maybe just as a follow-up, you delivered impressive fuel margins of $0.526 per gallon in Q2 and healthy same-store fuel volumes of 1.4%. So I'm just curious if you could touch on how you're balancing fuel volumes and sort of profitability levels. What investments have you made recently to help drive this? And sort of, I guess, is that balancing act getting a bit more difficult in this current volatile operating environment? Ericka Ayles: Great question. So on the legacy portfolio, we have been actively investing in that portfolio. As I mentioned, pump changeouts. We've had 45 stores in the last 12 months that have undergone pump changeouts that for us are very measurable support of the portfolio. We've had 6 fuel expansions. All of that is a reflection of us leaning into the fuel customer. Obviously, those fuel expansions are really focused on the diesel customer. So those are certainly helping to drive incremental gallons. And then we also had 5 NTIs coming into the comp set in this reporting period. And as I mentioned, those NTIs are continuing to grow at a faster clip. As far as balancing growth on gallons versus overall margin, what we are -- we obviously have an incredible fuel team that does a great job in all sorts of markets. So fuel volatility is certainly an opportunity to those who can do it well, make excess margin without certainly hurting the consumer in any meaningful way. We want to make sure that we're good stewards to our customers. So we're really trying to focus on delivering the highest gross profit dollars that we're able to while maintaining our gallons. Operator: Our next question comes from Brad Thomas with KeyBanc Capital Markets. Bradley Thomas: Nice quarter here. I want to first ask about the inside merchandise margins. Those continue to be really healthy. Wondering if you could speak to the opportunity to continue to expand those inside merchandise margins in the back half of the year and going forward. Thomas Trkla: Go ahead, Ericka. Ericka Ayles: Sure. Good question. So we are really proud of the growth in the gross profit margin percentage over the last couple of years. A lot of that has been strategic pricing, as I mentioned, but also growth of foodservice contribution that we've been able to achieve, namely in the new-to-industry stores that we've brought to market. Generally, those new-to-industry stores have a higher contribution of higher-margin products. So those are certainly helping to drive that up. And then obviously, as we continue to grow, we have economies of scale, but that margin expansion is something that our team focuses on every day. Bradley Thomas: Okay. That's great. And then maybe if I could ask a fuel margin question. This is something not just coming up for Yesway, but for the whole industry and our conversations with investors. Just wondering how you're thinking about sort of a floor or a mean reversion level potentially for fuel margins as the Iran overhang gets behind us. And I ask that not just in terms of how maybe we should think about your model for '27 and beyond, but also maybe how you all are approaching it as you look at acquisitions and have to forecast what you think these chains might be doing in the future. Ericka Ayles: Sure. Good question. So we won't look to project out CPG, but I think there's a few things that we can highlight. One, for just historical context, we do see CPG trending in line with inflation over the long term. So we do think that, that is likely to expand for the industry over the period. Obviously, prior to the Middle East conflict, we were operating in about a low $0.40 per gallon environment. As we've talked about before, again, those new builds and their focus on the diesel customer. Again, over the long term, diesel generally is coming in at a higher margin than the gasoline CPG, which is, again, another reason that we like that. Specific to Yesway, that is a differentiator for us and where we believe we will settle out. I think as Tom mentioned, we consistently deliver fuel margins that exceed the industry average. So with that 38% diesel mix and growing, we think that will benefit for us and then obviously, our geography. So the proximity to our fuel suppliers and those long-term relationships, we certainly think help continue to deliver that higher margin. Thomas Trkla: One thing I'd emphasize as well, we talked about this in the last call, but our new builds are giving us basically over 40% diesel contribution as well as elevated foodservice contribution. And so the weighted average of our portfolio, especially after we sell Iowa and Kansas, will get to 40%, probably exceed 40%, which will give us, again, a structural advantage again over some of our competitors for the diesel contribution to margin. So wherever it settles, we think we'll settle a little higher. Operator: Our next question comes from Tom Palmer with JPMorgan. Thomas Palmer: I wanted to maybe first ask on the guidance increase, $25 million kind of both sides of the range. You noted the strength of 2Q when noting the reason for the increase, but I did want to clarify maybe how much of the raise was actually 2Q versus maybe what you're pulling forward as we think about the back half of the year relative to what prior guidance embedded? Ericka Ayles: Thanks for the question. So we're certainly not going to try to get into quarterly guidance here. But what we are seeing is the continued momentum. As I mentioned, July so far with what we can share is giving us confidence in the back half of the year. Fuel margin remained elevated in July, as I mentioned, mid-$0.40 positive gallons, positive same-stores, which are trending higher than what we saw in Q2. I think we've also done a really great job on expense control. And as we think about our inside margin, we've continued to deliver some margin increase over each prior year quarter. So we feel very good about it. Again, I think as we think about the second half of the year, it's really about where does fuel margin fall in the second half. But we do feel pretty good about what we're seeing so far for the third quarter. Operator: Our next question comes from Kelly Bania with BMO Capital Markets. Kelly Bania: Tom, you expressed continued confidence in the new store growth outlook over the coming years, but I was just wondering if you could be more specific on the pipeline into '27 and the number of stores, the visibility there, the quality of locations? And if there's any thoughts on changing the mix of financing the new stores, either build-to-suit or the owner-owned structure given the continued strong cash generation. Thomas Trkla: Great question, and thank you, Kelly. I'll reiterate that we feel very confident we'll exceed the 130-store target that we have and that we will increase demonstrably the number of stores we both build and buy next year, OK? And you're absolutely correct. We generated tremendous amounts of excess cash. As I mentioned in the last call and a lot of the follow-up meetings we've had, our entire focus is to see where we can deploy that capital to EBITDA-producing things soonest. And we've got a few more fuel expansions, but it's really, as we said before, building in addition -- buying in addition to building. So we feel very good that we'll increase this year over next year and into the years in the future. Our pipeline for both is very strong right now. We have directed our real estate teams to increase front-end acquisitions of land and front-end due diligence on land to be able to do that with the excess cash. Actual numbers, we'll see and we'll talk about over quarters right now. But I would say we feel very confident in our ability to increase that 135-store target, I guess, over the next 4.5 years now in our model. And you're absolutely correct, the excess cash. Now to the second question, I think the majority of our short-term model is build-to-suits, but we're going to always keep a majority of our real estate. Right now, it's about, what, 65%, 66% owned real estate. So we'll continue to throttle between new builds. We did move 3 NTIs up as we reported last quarter that we're going to pay -- I'm sorry, move 3 build-to-suits to NTIs to deploy some of that cash sooner, and we'll keep looking at that. But we're always going to maintain a healthy ownership of our stores. And again, a lot of that, too, will also be altered by whatever stores we acquire in the coming quarters. But we want to keep the majority owned. We get the benefit of the 30% versus 15% in terms of the impact of returns from the build-to-suits versus new-to-market stores. But we feel confident that we can basically deliver all, and we'll keep that same guidance we talked about last quarter. Kelly Bania: Okay. And just to confirm, I think I heard you say the fuel margin, and correct me if I'm wrong, is that -- where is that tracking in July? Did you say mid-40s? And just to clarify that. And as we think about kind of '27, obviously, difficult to know when this volatility ends, but should we be thinking about a low 40s kind of in the model for '27 at this point? Is that just a reasonable assumption? Ericka Ayles: So Kelly, thanks for the question. You're correct, the July fuel margin was in the mid-40s. As far as 2027 goes, we will not guide to fuel margin. I think where we ended 2025 was in the low 40s. And again, as I mentioned, we historically see that track with inflation. The only other thing that I would think would be sort of in that calculus would be as more stores with higher productivity and higher diesel contribution, those are generally going to be on the higher end of the range as far as the portfolio. Operator: Thank you. This concludes the question-and-answer session. Thank you for your participation. You may now disconnect. Everyone, have a great day. 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This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Yesway recorded its strongest quarter in company history during Q2 2026, Chairman, President and CEO Tom Trkla said during the convenience retailer’s earnings call on Thursday. Yesway set new records across several key areas, including fuel gallons sold, fuel gross profit, inside merchandise sales, inside merchandise gross profit and store contribution, Trkla said in its earnings report. The performance drove adjusted EBITDA up about 35% year over year in the second quarter. Yesway’s solid quarter positions the retailer for a strong finish to 2026 as it embarks on an ambitious five-year growth plan. Yesway’s future appeared murky before going public in April, with some investors and stakeholders growing frustrated with the lack of movement and growth in recent years. But since its IPO, the Texas-based retailer has been moving full steam ahead, and is now building on the success it achieved during the first quarter. The strong second quarter wasn’t driven by any single factor, but rather by execution across several areas of the business, Trkla emphasized during the call. In addition to EBITDA growth, highlights included a $5.5 million increase in net income, a 4.4% increase in total inside merchandise sales and a 6.9% increase in total fuel gallons sold, according to Yesway’s earnings report. This all situates Yesway to make headway on its five-year expansion plan, which includes opening 130 new-to-industry stores, primarily in Arizona, Oklahoma, New Mexico and Texas, while pursuing strategic acquisitions. “Looking ahead, our strong operating performance and significant cash generation are increasing our financial flexibility to fund our organic growth initiatives and pursue acquisitions as compelling opportunities arise,” Trkla said in Yesway’s earnings report. Yesway noted in March that it plans to open six to eight new builds this year, and that goal remains on track, Trkla said during the call. Newer stores will feature expanded forecourts and dedicated high-flow diesel lanes to support commercial vehicles, he added. Inside the store, Yesway is rationalizing its food menu by removing some “lower velocity” SKUs to reduce complexity, he said. While Yesway’s acquisitions path isn’t as clearly defined as its NTI strategy, Trkla said the company is “now much more active in terms of looking at accretive M&A” than it was in the past five years. Trkla said Yesway is evaluating acquisition opportunities that may increase its density in existing areas or expand its presence in “attractive markets.” Yesway also expects to still complete the $17.5 million sale of its 29 locations across Iowa and Kansas by the end of the year, according to its report. C-Store Dive reported last year that Nebraska-based Mega Saver agreed to purchase these locations. Recommended Reading Yesway reveals 5-year expansion plan as IPO takes shape

This article first appeared on GuruFocus. Adjusted EBITDA: $71 million, up 35% year-over-year. Inside Merchandise Sales: $240 million, up 4.4% year-over-year; same-store sales up 1.2%. Inside Merchandise Margin: Expanded by approximately 50 basis points to 35.7%. Fuel Sales: $673 million, up 52.7% year-over-year. Fuel Margin: $0.526 per gallon, up 27.4% year-over-year. Same-Store Fuel Gallons: Increased 1.4% year-over-year. Store Contribution: $88 million, up 29.5% year-over-year. Net Income: $30 million, compared to $24 million in the prior-year period. Store Count: 450 stores at end of quarter, with one new store opened. Cash and Cash Equivalents: $82 million. Total Debt: $618 million, including financing obligations. Net Cash Provided by Operating Activities: $57 million, compared to $36 million in the prior-year period. Capital Expenditures: Approximately $24 million. Full-Year 2026 Adjusted EBITDA Guidance: Raised to $235 million to $245 million. Warning! GuruFocus has detected 5 Warning Signs with LUCD. Is YSWY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 performance with adjusted EBITDA up 35% year-over-year to $71 million, driven by broad-based growth in fuel and merchandise. Same-store fuel gallons increased 1.4% (1.8% ex-Iowa/Kansas), outperforming core market averages and indicating market share gains. Fuel margin per gallon surged 27.4% to $0.526, supported by elevated volatility, diesel mix shift, and strategic pricing. Inside merchandise sales grew 4.4% year-over-year, with same-store sales up 1.2% (1.5% ex-Iowa/Kansas), and margin expanded 50 basis points to 35.7%. Raised full-year 2026 adjusted EBITDA guidance to $235-$245 million, reflecting strong momentum and confidence in the back half. Strong cash generation and liquidity (~$250 million) provide flexibility for organic growth, debt repayment, and selective M&A. Diesel now represents 38% of fuel volume (vs. industry average 27%), enhancing margins and attracting higher-spending professional drivers. New store development and fuel expansions are driving productivity, with new builds outperforming legacy stores. Labor efficiency improved with same-store labor hours down 2.4% for the fifth consecutive quarter, supporting cost control. Strategic pricing and SKU rationalization have been well-received, with no negative impact on customer behavior or the iconic burrito offering. Same-store inside merchandise sales growth moderated to 1.2% (1.5% ex-Iowa/Kansas) from Q1's ~2.5%, partly due to higher fuel prices pressuring traffic. Higher fuel prices led to modestly lower customer traffic in Q2, though July trends improved. Fuel margin guidance for the back half assumes moderation to low $0.40 per gallon, which could limit upside if volatility subsides. The sale of 29 Iowa and Kansas stores is expected to close by year-end, but until then, these stores are a drag on same-store metrics. Elevated fuel price volatility, while beneficial to margins, creates uncertainty and could pressure inside sales if sustained. Same-store operating expenses increased 4.8% year-over-year, primarily due to higher credit card fees. New store openings are modest (one in Q2, six to eight expected for 2026), limiting near-term growth from new builds. The company faces execution risks in its Arizona expansion and other new markets, which may take time to reach profitability. M&A opportunities are evaluated but no deals are imminent, and leverage could increase to 4x for larger acquisitions, adding financial risk. The company does not provide fuel margin forecasts, making it difficult for investors to model future profitability. Q: How do you look at M&A versus new-to-industry (NTI) development as priorities, and what is the gating factor on growth?A: Tom Trkla (Chairman, President, and CEO) explained that the choice between M&A and NTI is primarily mathematical, targeting a 15% unlevered IRR on new builds and up to 30% or higher on built-to-suit projects. The company is now much more active in evaluating accretive M&A opportunities than in the past five years. Growth is concentrated in four core statesArizona, Texas, New Mexico, and Oklahomaand the company is confident in hitting its 130-store target, with no M&A included in that forecast. Q: Can you elaborate on the customer behavior trends, specifically regarding the 1.2% inside merchandise comps and any changes in spending patterns?A: Tom Trkla noted that while traffic was modestly lower in Q2, July same-store inside merchandise sales are trending slightly ahead of Q2. The company is not seeing meaningful trading down inside the store. On the fuel side, there is some trading down from premium to mid-grade at the pump, but margin expansion is more than offsetting that differential. Positive fuel gallons were also recorded in July. Q: What is the status of the menu and SKU optimization, and what are the plans for savings or new items?A: Tom Trkla stated that the SKU rationalization is an ongoing process, with the bulk of the work expected to be completed by year-end. The focus is on limiting the price book to concentrate on high-velocity items, particularly the iconic burrito, which sells over $24 million annually. The company is not touching the burrito's price point, maintaining a competitive gap. New accretive food service items are expected to be introduced in Q4 2026 and rolled out into 2027. Q: What is the comfort level on leverage for the right acquisition deal?A: Tom Trkla and Ericka Ayles (CFO) indicated that the company has significant liquidity, with approximately $90 million in cash and $140 million available on its revolver. For a larger, accretive acquisition, they would be comfortable temporarily increasing leverage to as high as 4x, with the intention of bringing it back down. Smaller tuck-in acquisitions would likely be funded with cash off the balance sheet, with no impact on leverage. Q: Can you provide more detail on the guidance raise and the assumptions for the second half of 2026?A: Ericka Ayles explained that the raised adjusted EBITDA guidance of $235 million to $245 million assumes fuel margins moderate to the low $0.40 per gallon range for the second half, consistent with historical averages. The company is not underwriting any elevated fuel margin in the current environment. July performance has been strong, with positive gallons, positive same-store sales, and fuel margins in the mid-$0.40 range, providing confidence in the back half of the year. Q: How are you balancing fuel volumes and profitability, and what investments are driving this?A: Tom Trkla highlighted investments in the legacy portfolio, including 45 pump changeouts in the last 12 months and six fuel expansions focused on the diesel customer. These initiatives are driving incremental gallons. The company aims to deliver the highest gross profit dollars while maintaining gallons, leveraging its fuel team's expertise to navigate volatility. New-to-industry stores are also contributing to growth at a faster clip. Q: What is the opportunity to continue expanding inside merchandise margins?A: Ericka Ayles attributed the margin growth to strategic pricing actions and the increasing contribution of food service, particularly in new-to-industry stores which have a higher mix of higher-margin products. Economies of scale from continued growth also support margin expansion. The team remains focused on margin extension as a daily priority. Q: How should we think about a floor or mean reversion level for fuel margins, and how does this factor into M&A forecasting?A: Tom Trkla and Ericka Ayles noted that fuel margins historically trend in line with inflation over the long term. Prior to the Middle East conflict, the industry was operating in a low $0.40 per gallon environment. Yesway's structural advantages, including a 38% diesel mix (expected to exceed 40% after the Iowa/Kansas divestiture) and strategic geography, position the company to consistently deliver margins above the industry average, providing a competitive edge in both operations and M&A underwriting. Q: Can you provide more specifics on the new store pipeline for 2027 and the mix of financing between built-to-suit and owned structures?A: Tom Trkla expressed confidence in exceeding the 130-store target and increasing the number of stores built and bought next year. The company is directing its real estate team to accelerate land acquisitions using excess cash. While the majority of the short-term model uses built-to-suit structures, the company aims to maintain a majority-owned real estate portfolio (currently ~65-66%). The mix will be adjusted based on opportunities, with a preference for the higher returns from owned stores. Q: Can you confirm the July fuel margin and provide a reasonable assumption for 2027?A: Ericka Ayles confirmed that the July fuel margin was in the mid-$0.40 range. For 2027, the company will not provide formal fuel margin guidance, but noted that 2025 ended in the low $0.40s. Historically, margins track with inflation, and the growing mix of higher-productivity, diesel-focused stores should support margins at the higher end of the range. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Achieved record Store Contribution, driven by increases in fuel margin and inside merchandise margin from same-store sales and increases in fuel gallons and inside merchandise sales from new stores Delivered same-store inside merchandise sales growth in 18 of the past 19 quarters and generated positive same-store fuel gallons growth in the second quarter of 2026 Increased full year 2026 Adjusted EBITDA outlook, reflecting strong second quarter performance FORT WORTH, Texas, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Yesway, Inc. (“Yesway” or the “Company”) (Nasdaq: YSWY), one of the fastest-growing convenience store operators in the United States, today announced financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Highlights Net income increased to $29.7 million from $24.2 million in the prior-year period, and Adjusted EBITDA increased 35.0% year-over-year to $70.9 million. Same-store inside merchandise sales increased 1.2% year-over-year. Excluding the 29 stores in our Iowa and Kansas portfolio, the sale of which is expected to close by year-end, same-store inside merchandise sales increased 1.5%. Total inside merchandise sales increased 4.4% year-over-year, with a total inside merchandise margin of 35.7%. Same-store fuel gallons sold increased 1.4% year-over-year. Excluding the 29 stores in our Iowa and Kansas portfolio, same-store fuel gallons sold increased 1.8%. Total fuel gallons sold increased 6.9% year-over-year, with a total fuel margin of 52.6 cents per gallon. Income from operations increased to $47.7 million from $36.7 million in the prior-year period, and Store Contribution increased 29.5% year-over-year to $87.7 million. “Our second quarter was a milestone in our company’s history, reflecting broad-based execution across both our fuel and inside merchandise businesses,” said Thomas N. Trkla, Chairman, President and Chief Executive Officer of Yesway. “We set new records across several key measures, including fuel gallons sold, fuel gross profit, inside merchandise sales, inside merchandise gross profit, and Store Contribution. This operating momentum drove Adjusted EBITDA growth of 35% year-over-year in the second quarter.” Mr. Trkla continued, “These results underscore the strength and breadth of our platform, the advantages of our differentiated market positioning, the resilience of our business model amid continued inflationary pressures and volatile fuel markets, and the disciplined execution of our team. Looking ahead, our strong operating performance and significant cash generation are increasing our financial flexibility to fund our organic growth initiatives and pursue acquisitions as compelling opportunities arise.” Second Quarter Results1,2 Same-Store Comparison Total inside merchandise and fuel gross profit increased 14.0% year-over-year on a same-store basis, reflecting growth in both fuel and inside merchandise categories. Fuel gallons sold increased 1.4% year-over-year on a same-store basis, and same-store fuel gross profit increased 29.0% year-over-year. Inside merchandise sales increased 1.2% year-over-year on a same-store basis, and same-store inside merchandise gross profit increased 2.5% year-over-year. Fuel Fuel sales increased 52.7% year-over-year to $673.1 million, and fuel gross profit increased 36.2% year-over-year to $84.0 million, with fuel margin increasing 27.4% year-over-year to 52.6 cents per gallon. Inside Merchandise Inside merchandise sales increased 4.4% year-over-year to $240.1 million, and inside merchandise gross profit increased 5.8% year-over-year to $85.8 million, with inside merchandise margin increasing 50 basis points to 35.7%. Adjusted EBITDA Adjusted EBITDA increased 35.0% year-over-year to $70.9 million, primarily attributable to the increase in fuel margin and inside merchandise margin from same-store sales and increases in fuel gallons and inside merchandise sales from new stores. A reconciliation of net income to Adjusted EBITDA, a non-GAAP financial measure, is provided in the tables below. Store Contribution Store Contribution increased 29.5% year-over-year to $87.7 million, primarily attributable to the increase in fuel margin and inside merchandise margin from same-store sales and increases in fuel gallons and inside merchandise sales from new stores. A reconciliation of income from operations to Store Contribution, a non-GAAP financial measure, is provided in the tables below. Store Count As of June 30, 2026, the Company operated 450 stores under the Yesway and Allsup’s brands. The following table represents the roll forward of store count through the second quarter of fiscal 2026. ___________________________________ 1 Results for the periods include 29 stores in Iowa and Kansas, which the Company expects to sell by the end of 2026. Fuel sales less cost of goods sold (exclusive of depreciation and amortization) for the Iowa and Kansas stores were $1.2 million and $1.1 million in the three months ended June 30, 2026, and 2025, respectively. Inside merchandise sales less cost of goods sold for the Iowa and Kansas stores were $1.9 million and $2.0 million in the three months ended June 30, 2026, and 2025, respectively.2 See "Presentation of Financial Information" below. Balance Sheet, Cash Flow and Liquidity As of June 30, 2026, the Company had cash and cash equivalents of $81.6 million and total debt, including financing obligations and finance lease obligations, of $618.4 million. Net cash provided by operating activities was $56.6 million for the three months ended June 30, 2026, compared to $35.7 million in the prior-year period. Capital expenditures totaled $24.2 million for the three months ended June 30, 2026, compared to $21.8 million in the prior-year period. Full Year 2026 Outlook1 Yesway has increased its outlook for full year 2026 Adjusted EBITDA to $235 million to $245 million from $210 million to $220 million previously. The Company’s updated Adjusted EBITDA outlook reflects strong second quarter performance and assumes that fuel margin moderates in low-40-cent-per-gallon range for the second half of the year, consistent with the Company’s historical average. The Company has reaffirmed its outlook for the following metrics as detailed below: 1 Assumes the sale of the 29 stores in the Company’s Iowa and Kansas portfolio will close by the end of 2026. Conference Call Details Yesway will hold a conference call and webcast to discuss its second quarter 2026 financial results today, Thursday, August 13, 2026, at 8:30 AM ET. A live webcast of the conference call will be available on the Investor Relations section of the Company’s website or by clicking on the webcast link here. An online archive of the webcast will be available on the Company’s website for one year following the call. About Yesway Established in 2015 and headquartered in Fort Worth, TX, Yesway is an award-winning convenience store operator with approximately 450 stores across nine states in the Midwest and Southwest. Yesway is renowned for its iconic foodservice offerings, diverse grocery selections, and private-label products, including the famous Allsup's deep-fried burrito. Through strategic acquisitions, the development and opening of more than 90 stores over the past several years, and a steadfast commitment to customer satisfaction and community engagement, Yesway continues to cement its position as one of the leading convenience retailers in the United States. Non-GAAP Financial Measures We use non-GAAP financial measures, such as Adjusted EBITDA and Store Contribution, to supplement financial information presented in accordance with GAAP. We believe that excluding certain items from our GAAP results allows management to better understand our consolidated financial performance, in the case of Adjusted EBITDA, and the direct performance of our stores, in the case of Store Contribution, from period to period, and better project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our stakeholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented herein. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Additionally, Store Contribution excludes costs that we incur on an enterprise level that while essential in supporting our store operations, are not directly related to store operations, and that we believe result in efficiencies of scale and confer other benefits across our business. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes. A reconciliation of our guidance contained in this press release of Adjusted EBITDA to the most directly comparable GAAP financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including but not limited to, uncertainty related to the timing, amount, and structure of stock-based compensation awards, as well as potential forfeitures of such awards, all of which could materially impact the Company’s estimates of forward-looking GAAP net income. These items are inherently difficult to predict, subject to significant variability, and dependent on factors that may be outside of the Company’s control. See “Definitions” for additional information about our non-GAAP financial measures and “Non-GAAP Reconciling Information” for a reconciliation for each non-GAAP financial measure to the most directly comparable GAAP financial measure. Definitions We define the same-store base for a given period as all owned or leased stores that were open for the entirety of that period in both the current and prior years. This measure highlights the performance of existing stores, while excluding the impact of new store openings and closures as well as acquisitions and divestitures. We define gross profit as sales less cost of goods sold (exclusive of depreciation and amortization). Store Contribution represents, as applicable for the period, income (loss) from operations before depreciation, amortization and accretion, loss (gain) on disposal of assets, long-lived asset impairment, acquisition financing, integration, and stock-based compensation expense, and overhead expenses directly attributed to support staff and corporate offices that, while essential in supporting our store operations, are not directly related to store operations. Adjusted EBITDA represents, as applicable for the period, net income (loss) before change in fair value of derivative liability, interest expense, income tax expense, depreciation, amortization, and accretion, and further adjusted by excluding the loss (gain) on disposal of assets, long-lived asset impairment, acquisition, financing, and integration costs, and stock-based compensation expense. Presentation of Financial Information As a result of Yesway’s initial public offering in April 2026, Yesway now consolidates the results of BW Ultimate Parent, LLC, for financial reporting purposes. All of Yesway’s business operations are currently, and have historically been, conducted through BW Ultimate Parent, LLC and its subsidiaries. Periods prior to Yesway’s initial public offering reflect the results of BW Ultimate Parent, LLC. Cautionary Note Regarding Forward-looking Statements Some information in this press release contains forward-looking statements that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding the expected timing of the sale of our Iowa and Kansas stores, 2026 guidance, including with respect to same-store sales growth, Adjusted EBITDA, capital expenditures and new store openings, expected growth and future capital expenditures, are forward-looking statements. In some cases, you can identify forward-looking statements by terms, such as “may,” “will,” “would,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these terms or other similar expressions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: volatility in the global prices and availability of oil and petroleum products and general economic conditions, including interest rates; our ability to maintain an adequate pipeline of suitable locations for new stores; our ability to successfully implement our rapid growth strategy; risks associated with new store development; our ability to successfully recruit, hire, and retain qualified personnel; our dependence upon market acceptance by consumers and our failure to offer products that meet our existing customers’ taste and attract new customers; changes to wage regulations and other employment and labor laws; changes in demand for fuel-based modes of transportation and advancements in technologies, such as hybrid and electric vehicles, that significantly reduce fuel consumption related to the public’s current general approach with regard to climate change and the effects of greenhouse gas emissions, among others; our dependence on a limited number of suppliers for the majority of our gross fuel purchases and merchandise; operational hazards and risks normally associated with marketing of petroleum products; hazards and risks relating to the physical effects of weather and climate change; changes to tobacco legislation, potential court rulings affecting the tobacco industry, campaigns to discourage smoking, increases in tobacco and nicotine products taxes and wholesale cost increases of tobacco and nicotine products; the significant influence that Brookwood Financial Partners, LLC continues to have over us, including control over decisions that require the approval of stockholders; and the other important factors discussed under “Risk Factors” in our final prospectus dated April 21, 2026, as filed with the SEC on April 23, 2026 pursuant to Rule 424(b) under the Securities Act of 1933 (the “Prospectus”) and in our other filings with the SEC. The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our ability to control or predict. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. Investor Contact: [email protected] Media Contact:Erin [email protected] Non-GAAP Reconciling Information The following table contains a reconciliation of net income to Adjusted EBITDA for the three and six months ended June 30, 2026, and 2025, respectively: The following table contains a reconciliation of income from operations to Store Contribution for the three and six months ended June 30, 2026, and 2025, respectively: (1) Store Contribution generated by the 29 stores in Iowa and Kansas was $0.5 million and $0.6 million in the three months ended June 30, 2026, and June 30, 2025, respectively, and $0.6 million in each of the six months ended June 30, 2026, and June 30, 2025, respectively.

Interested in Yesway, Inc.? Here are five stocks we like better. Record second-quarter performance: Adjusted EBITDA rose 35% year over year to $71 million, while fuel and merchandise sales, gross profit, and store contribution reached company records. Fuel sales increased 52.7%, and fuel margins expanded to $0.526 per gallon. Full-year outlook raised: Yesway increased its 2026 adjusted EBITDA guidance to $235 million-$245 million from $210 million-$220 million, supported by elevated fuel margins, positive July trends, and continued merchandise growth. Expansion and capital priorities: The company remains on track to open six to eight stores in 2026, is investing in diesel capacity and existing locations, and is evaluating disciplined acquisitions while reducing debt and maintaining balance-sheet flexibility. Yesway (NASDAQ:YSWY) reported record second-quarter results and raised its full-year adjusted EBITDA outlook, citing higher fuel margins, growth in fuel volumes and continued expansion in inside merchandise sales. Chairman, President and Chief Executive Officer Tom Trkla said the quarter was the strongest in the company’s history, with records for fuel gallons, fuel gross profit, inside merchandise sales, inside merchandise gross profit and store contribution. Adjusted EBITDA rose 35% from a year earlier to $71 million. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be “We grew both fuel volumes and inside merchandise sales while expanding margins and generating greater profitability,” Trkla said, describing the results as broad-based rather than dependent on a single factor. Inside merchandise sales increased 4.4% year over year to $240 million. Same-store inside merchandise sales rose 1.2%, or 1.5% excluding 29 stores in Iowa and Kansas that Yesway has agreed to sell and expects to exit by the end of 2026. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Chief Financial Officer Ericka Ayles said the company gained share in merchandise sales and units despite modestly lower traffic associated with higher fuel prices, according to Nielsen data. Total inside merchandise margin expanded about 50 basis points to 35.7%, from 35.2% in the prior-year period. The expansion reflected store growth and pricing actions taken during 2025, she said. Fuel sales increased 52.7% to $673 million. Same-store fuel gallons rose 1.4%, or 1.8% excluding the Iowa and Kansas portfolio. Fuel margin increased to $0.526 per gallon from $0.413 per gallon a year earlier, supported by fuel-price volatility, widening spreads between diesel and gasoline margins, and a larger diesel mix. → On Holding's Price Stumble May Be an Opening for a Company Built to Run Diesel accounted for about 38% of total fuel volume during the quarter, compared with a 27% average cited by the company for the broader convenience-store industry. Ayles said the company’s newer locations, rural and suburban footprint, and investments in diesel capacity have contributed to that mix. Same-store fuel and inside merchandise gross profit increased 14% year over year. Same-store fuel gross profit increased 29%, while same-store inside merchandise gross profit rose 2.5%. Store contribution rose 29.5% to $88 million. Net income increased to $30 million from $24 million in the prior-year period. Same-store operating expenses increased 4.8%, primarily due to credit card fees, which accounted for approximately 96% of the increase, Ayles said. Same-store labor hours declined 2.4%, the fifth consecutive quarterly reduction, as the company used standardized processes, employee training and technology across its stores. Yesway increased its full-year 2026 adjusted EBITDA guidance to a range of $235 million to $245 million, from its previous outlook of $210 million to $220 million. The company maintained its expectation for same-store inside merchandise sales growth of 1.25% to 3.25%, capital expenditures of $85 million to $95 million, and six to eight new store openings during 2026. The updated outlook assumes fuel margins moderate to the low-$0.40-per-gallon range in the second half, consistent with the company’s historical average. Management does not provide formal fuel-margin guidance because of volatility in fuel markets. Ayles said July trends provided confidence entering the back half of the year. Same-store inside merchandise sales were tracking slightly ahead of the second-quarter rate, fuel gallons remained positive, and fuel margins were in the mid-$0.40-per-gallon range during July. Management said it was not seeing significant consumer trade-down behavior in stores. Ayles noted some limited movement from premium gasoline to mid-grade fuel, but said that shift was not material. Yesway opened one store during the second quarter and ended the period with 450 locations, including the 29 Iowa and Kansas stores slated for sale. The company opened two stores in the first half and said it remains on track for six to eight openings this year. Trkla said Yesway has built 92 stores since 2020 through new-to-industry development and raze-and-rebuild projects. Its current development focus is Arizona, Oklahoma, New Mexico and Texas, with Arizona a near-term priority. The company is also investing in its existing base through dispenser replacements, fuel expansions and additional diesel capacity. Ayles said 45 stores underwent pump changeouts in the previous 12 months and six locations received fuel expansions. Five new-to-industry stores also entered the comparable-store base during the reporting period. Trkla said newer stores generate diesel contributions above 40%, while also carrying greater food-service contributions. The company expects its portfolio diesel mix to approach or exceed 40% after the Iowa and Kansas sale closes, he said. Food service remains central to the company’s merchandising strategy, led by Allsup’s beef and bean burrito. Trkla said Yesway sells more than 24 million burritos annually and does not plan to change the product’s price point. The company is rationalizing low-volume food-service items to simplify operations, while evaluating limited new offerings for the fourth quarter and into 2027. Yesway ended the quarter with $82 million in cash and cash equivalents and $618 million in total debt, including financing and lease obligations. Operating cash flow totaled $57 million, compared with $36 million in the prior-year quarter, while capital expenditures were about $24 million. Through June 30, the company had repaid $40 million of debt, including $10 million repaid using initial public offering proceeds. Management identified organic investment, balance-sheet flexibility and selective acquisitions as its capital-allocation priorities. Trkla said Yesway is becoming more active in evaluating acquisitions while continuing to build stores. He said the company would weigh the relative returns of new development and mergers and acquisitions, with its activity concentrated in Arizona, Texas, New Mexico and Oklahoma. Management said it would remain disciplined and pursue transactions only when expected returns meet its criteria. Yesway, traded on NASDAQ under the ticker YSWY, is a U.S.-based convenience store and fuel retail company that operates retail locations under the Yesway brand. The company's core business is the operation of neighborhood convenience stores that provide quick-purchase retail items, on-site prepared foods, beverages and other convenience merchandise. Many locations also feature fuel dispensing, making Yesway a combined convenience and gasoline retailer for everyday consumers and motorists. Yesway's stores focus on high-turnover product categories typical of the convenience-retail sector, including snacks, cold beverages, coffee, single-serve and prepared food offerings, and commonly purchased household items. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Yesway Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Yesway, Inc.? Here are five stocks we like better. Yesway posted record Q1 results in its first earnings call as a public company, with adjusted EBITDA jumping 112.9% year over year to $59.2 million and net income turning to $30.2 million from a loss a year earlier. Fuel margins were a major driver, as fuel sales rose 16% to $464.3 million and margin expanded to $0.494 per gallon, helped by volatile fuel pricing and Yesway’s rural footprint and diesel-heavy mix. Management raised 2026 guidance, projecting adjusted EBITDA of $210 million to $220 million and six to eight new store openings, while also planning to sell 29 stores in Iowa and Kansas to focus on core markets. Yesway (NASDAQ:YSWY) reported record first-quarter results in its first earnings call as a public company, with management citing strong fuel margins, higher merchandise sales and improved cost controls as key drivers of profitability. Chairman, President and Chief Executive Officer Tom Trkla said the convenience store operator delivered “record first quarter results” and entered the second quarter with continued momentum. As of March 31, 2026, Yesway operated 449 stores, making it the 15th-largest convenience store operator in the United States, according to Trkla. → Best Buy’s AI Laptop Boost Sparks Hope for a BBY Turnaround The company’s adjusted EBITDA rose 112.9% year over year to $59.2 million, while net income increased to $30.2 million from a net loss of $5.6 million in the prior-year period. Store contribution increased 72.7% to $74.6 million. Fuel sales increased 16% year over year to $464.3 million in the first quarter, while fuel margin rose 48.5% to $0.494 per gallon. Same-store fuel gallons sold increased 0.2%, and same-store fuel gross profit rose 38.5% from the prior-year period. → 3 Up-and-Coming Stocks That Could Be the Next NVIDIA Chief Financial Officer Ericka Ayles said geopolitical developments in the Middle East had increased fuel price volatility across the industry, benefiting retailer profitability. She said retail prices generally rise as wholesale costs increase, protecting cents-per-gallon margins, while retail prices can lag when wholesale costs ease. “Volatile pricing environments can benefit both CPG margin and fuel gross profit dollars,” Ayles said. → These 3 CLO ETFs Target a Niche Corner of the Fixed-Income Market Management also pointed to structural advantages in Yesway’s fuel business, including local refinery partnerships, its rural footprint and a high diesel mix. Trkla said diesel represented approximately 38% of total fuel volume in the quarter. Ayles later said the company expects diesel penetration to increase slightly as new stores enter the reporting base. In response to an analyst question on whether current fuel margins are temporary or structural, Ayles said Yesway delivered cents-per-gallon margins in the low 40s in 2025 and had a trailing 12-month margin of 43.8% through the first quarter of 2026. “Structurally, we are likely to be in the low 40s today,” she said, while noting that new stores with higher diesel exposure could naturally lift that level over time. Inside merchandise sales rose 9.5% year over year to $213.7 million, or 4.5% on a same-store basis. Same-store inside merchandise gross profit increased 9.8%, and total same-store gross profit rose 21.8%. Ayles said the inside sales increase was driven primarily by pricing initiatives taken during the fourth quarter of 2025 and the first quarter of 2026. She said those actions are expected to continue benefiting same-store inside sales for the remainder of the year. The company also reported a 190-basis-point improvement in inside gross margin. Ayles attributed much of the margin growth to new stores contributing a higher foodservice mix, as well as pricing actions that produced “very good results.” Asked about customer behavior after higher gasoline prices, Trkla said Yesway has seen only modest changes. He said the company’s rural focus and value positioning have supported resilient demand, with the chain offering $4, $5 and $6 meals. Ayles said Yesway has seen some trade-down behavior in fuel grades, such as from premium to mid-grade and mid-grade to regular, but said inside-store transactions were positive and merchandise basket size increased during the quarter. Same-store operating expenses declined 2.8% year over year. Ayles said a labor efficiency initiative introduced at the beginning of last year has reduced same-store labor hours over the past four quarters, including a 3.5% decline in the first quarter. Yesway opened one new store during the quarter and ended the period with 449 stores. The current store count includes 29 stores in Iowa and Kansas that the company has agreed to sell as part of a strategy to sharpen its operational focus, simplify its supply chain footprint and concentrate on core regions. Ayles said the sale is expected to close by the end of fiscal 2026. As of March 31, Yesway had $56.5 million in cash and cash equivalents and approximately $649.5 million in total debt. Net cash provided by operating activities was $48.4 million, up from $13.6 million in the prior-year period. Capital expenditures totaled approximately $11 million, compared with $26.3 million a year earlier. Trkla also reviewed the company’s April initial public offering, which raised approximately $322 million in net proceeds including the full exercise of the greenshoe option. He said the proceeds were used to fully redeem preferred equity and repay $10 million of debt, with an additional $20 million debt repayment made after the offering closed. Yesway issued fiscal 2026 guidance that reflects first-quarter strength and momentum through the first two months of the second quarter. The company expects: Same-store inside merchandise sales growth of 1.25% to 3.25%; Adjusted EBITDA of $210 million to $220 million; Capital expenditures of $85 million to $95 million; Six to eight new store openings in 2026, including the one opened in the first quarter. Ayles said the guidance excludes the 29 Iowa and Kansas stores expected to be sold before year-end. She also said Yesway moved three stores in its pipeline from build-to-suit to self-funded projects as it leverages recent business performance and maintains strategic flexibility. Management said same-store sales and gallons remained positive through the end of May, though Ayles said same-store inside sales are expected to decelerate from the first quarter. She noted that the first quarter benefited from fewer major weather disruptions than the prior-year period and strength in weather-correlated categories such as packaged beverages. Trkla said Yesway remains focused on new store development, selective acquisitions, technology investments and product expansion. The company has completed 27 acquisitions since its 2015 founding, including the 2019 acquisition of Allsup’s. During the question-and-answer session, Trkla said the company has “well over” its needed store delivery pipeline in land under contract or negotiation for future openings. He said Yesway feels “very good” about 2026 and 2027 deliveries and is working to accelerate outer-year opportunities using excess cash generated by fuel margins. Trkla highlighted Arizona as a key growth market, saying it has traditionally higher fuel margins than New Mexico and West Texas. He said Arizona is likely to be Yesway’s highest-growth state among its current focus markets of Oklahoma, New Mexico, Texas and Arizona “in the foreseeable future.” On foodservice, Trkla said Yesway is not aiming to become a quick-service restaurant but is looking at incremental innovation around its proprietary foodservice platform. He said the company sells 41 million proprietary foodservice items, including 24 million of Allsup’s burritos, and described the burrito as central to the company’s value proposition. Trkla said Yesway is also evaluating private-label enhancements and SKU optimization to simplify product offerings and operations. Ayles said loyalty penetration was about 18.5% of inside-store sales and roughly 15% of gallons transactions in the quarter, and that the company is considering targeted marketing to loyalty members, including potential vendor-funded efforts. Yesway, traded on NASDAQ under the ticker YSWY, is a U.S.-based convenience store and fuel retail company that operates retail locations under the Yesway brand. The company's core business is the operation of neighborhood convenience stores that provide quick-purchase retail items, on-site prepared foods, beverages and other convenience merchandise. Many locations also feature fuel dispensing, making Yesway a combined convenience and gasoline retailer for everyday consumers and motorists. Yesway's stores focus on high-turnover product categories typical of the convenience-retail sector, including snacks, cold beverages, coffee, single-serve and prepared food offerings, and commonly purchased household items. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Yesway Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

Achieved record first quarter results, underscoring the continued strength of Yesway’s operating platform and consistent execution Delivered same-store inside sales growth in 12 of the past 13 quarters and generated positive fuel gallons growth in the first quarter of fiscal 2026 Introduced fiscal year 2026 outlook, reflecting confidence in Yesway’s growth strategy, operating momentum, and ability to create long-term shareholder value FORT WORTH, Texas, June 02, 2026 (GLOBE NEWSWIRE) -- Yesway, Inc. (“Yesway” or the “Company”) (Nasdaq: YSWY), one of the fastest-growing convenience store operators in the U.S., today announced financial results for the first quarter ended March 31, 2026. First Quarter 2026 Highlights Net income increased to $30.2 million from a net loss of $5.6 million in the prior-year period, and Adjusted EBITDA increased 112.9% year-over-year to $59.2 million. Same-store inside merchandise sales increased 4.5% compared to the prior-year period and total inside merchandise sales increased 9.5% year-over-year, with a total inside margin of 36.1%. Same-store fuel gallons sold increased 0.2% compared to prior-year period and total fuel gallons sold increased 8.0% year-over-year, with a total fuel margin of 49.4 cents per gallon. Income from operations increased to $42.4 million from $10.2 million in the prior-year period, and Store Contribution increased 72.7% year-over-year to $74.6 million. “We are pleased to report record first quarter results following the successful completion of our public offering,” said Thomas N. Trkla, Chairman, President and Chief Executive Officer of Yesway. “Our strong performance reflects the continued execution of our growth strategy and the strength of our differentiated convenience and foodservice platform. During the quarter, we delivered meaningful year-over-year growth across our foodservice, merchandise, and fuel businesses, with fuel sales and margins increasing as we benefited from disciplined operations, strong customer demand, and the continued maturation of our store base.” Mr. Trkla added, “Our momentum has carried into the second quarter, and we remain confident in the resilience of our business model and the significant opportunity ahead. We are focused on further strengthening Yesway’s position as a go-to destination for high-quality foodservice offerings, trusted convenience products, competitive fuel options, and neighborly customer service. With our resilient business model and thoughtful capital allocation strategy, we believe Yesway is well-positioned to continue delivering profitable growth and create long-term value for our shareholders. We are grateful for the dedication of our team members and excited about the significant opportunities ahead as we continue to scale our platform and serve the communities in which we operate.” First Quarter Results1,2 Same-Store Comparison Total inside merchandise and fuel gross profit increased 21.8% year-over-year on a same-store basis, reflecting growth in both fuel and inside merchandise categories. Fuel gallons sold were up 0.2% year-over-year on a same-store basis, and same-store fuel gross profit increased 38.5% from the prior-year period. Inside merchandise sales increased 4.5% year-over-year on a same-store basis, and same-store inside merchandise gross profit increased 9.8% from the prior-year period. Fuel Fuel sales increased 16.0% year-over-year to $464.3 million, and fuel gross profit increased 48.6% year-over-year to $71.6 million, with fuel margins increasing 37.6% year-over-year to 49.4 cents per gallon. Inside Merchandise Inside merchandise sales increased 9.5% year-over-year to $213.7 million, and inside merchandise gross profit increased 15.9% year-over-year to $77.2 million, with inside merchandise margin increasing 196 basis points to 36.1%. Adjusted EBITDA Adjusted EBITDA increased 112.9% year-over-year to $59.2 million, primarily attributable to higher fuel cents per gallon margin. A reconciliation of net income (loss) to Adjusted EBITDA, a non-GAAP financial measure, is provided in the tables below. Store Contribution Store contribution increased 72.7% year-over-year to $74.6 million, primarily attributable to higher fuel cents per gallon margin, increased fuel volumes and merchandise sales driven by more stores open during the period and a higher concentration of new stores. A reconciliation of income from operations to store contribution, a non-GAAP financial measure, is provided in the tables below. Store Count As of March 31, 2026, the Company operated 449 stores under the Yesway and Allsup’s brands. The following table represents the roll forward of store count through the first quarter of fiscal 2026. ___________________________________1 Results for the periods include 29 stores in Iowa and Kansas, which the Company expects to sell by the end of 2026. Fuel sales less cost of goods sold (exclusive of depreciation and amortization) for the Iowa and Kansas stores were $1.1 million and $0.9 million in the three months ended March 31, 2026, and 2025, respectively. Inside merchandise sales for the Iowa and Kansas stores were $5.4 million and $5.7 million in the three months ended March 31, 2026, and 2025, respectively.2 Unless otherwise stated, financial results in this release reflect the historical consolidated results of BW Ultimate Parent, LLC, the predecessor of Yesway, Inc. for financial reporting purposes. See "Presentation of Financial Information" below.Balance Sheet, Cash Flow and Liquidity As of March 31, 2026, the Company had cash and cash equivalents of $56.5 million and total debt, including financing obligations and finance lease obligations, of $649.5 million. Net cash provided by operating activities was $48.4 million for the three months ended March 31, 2026, compared to $13.6 million in the prior year period. Capital expenditures totaled $11.0 million for the three months ended March 31, 2026, compared to $26.3 million in the prior year period. Full Year Fiscal 2026 Outlook Yesway is introducing guidance for fiscal 2026 as detailed below. Conference Call Details Yesway will hold a conference call and webcast to discuss its first quarter 2026 financial results today, June 2, 2026, at 8:30 AM ET. A live webcast of the conference call will be available on the investor relations section of the Company’s website or by clicking on the webcast link here. An online archive of the webcast will be available on the Company’s website for 1 year following the call. About Yesway Established in 2015 and headquartered in Fort Worth, Texas, Yesway is an award-winning convenience store operator with 449 stores across nine states in the Midwest and Southwest. Yesway is renowned for its iconic foodservice offerings, diverse grocery selections, and private-label products, including the famous Allsup's deep-fried burrito. Through strategic acquisitions, the 91 new stores it has developed and opened in the past several years, and its steadfast commitment to customer satisfaction and community engagement, Yesway continues to cement its position as one of the leading convenience retailers in the United States. Non-GAAP Financial Measures We use non-GAAP financial measures, such as Adjusted EBITDA and Store Contribution, to supplement financial information presented in accordance with GAAP. We believe that excluding certain items from our GAAP results allows management to better understand our consolidated financial performance, in the case of Adjusted EBITDA, and the direct performance of our stores, in the case of Store Contribution, from period to period, and better project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our stakeholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented herein. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Additionally, Store Contribution excludes costs that we incur on an enterprise level that while essential in supporting our store operations, are not directly related to store operations, and that we believe result in efficiencies of scale and confer other benefits across our business. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes. A reconciliation of our guidance contained in this press release of Adjusted EBITDA to the most directly comparable GAAP financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including but not limited to, uncertainty related to the timing, amount, and structure of stock-based compensation awards, as well as potential forfeitures of such awards, all of which could materially impact the Company’s estimates of forward-looking GAAP net income. These items are inherently difficult to predict, subject to significant variability, and dependent on factors that may be outside of the Company’s control. See “Definitions” for additional information about our non-GAAP financial measures and “Non-GAAP Reconciling Information” for a reconciliation for each non-GAAP financial measure to the most directly comparable GAAP financial measure. Definitions We define the same-store base for a given period as all owned or leased stores that were open for the entirety of that period in both the current and prior years. This measure highlights the performance of existing stores, while excluding the impact of new store openings and closures as well as acquisitions and divestitures. Store Contribution represents, as applicable for the period, income (loss) from operations before depreciation, amortization and accretion, loss (gain) on disposal of assets, long-lived asset impairment, acquisition financing, integration, and stock-based compensation expense, and overhead expenses directly attributed to support staff and corporate offices that, while essential in supporting our store operations, are not directly related to store operations. Adjusted EBITDA represents, as applicable for the period, net income (loss) before change in fair value of derivative liability, interest expense, income tax expense, depreciation, amortization, and accretion, and further adjusted by excluding the loss (gain) on disposal of assets, long-lived asset impairment, acquisition, financing, and integration costs, and stock-based compensation expense. Presentation of Financial Information This press release presents historical consolidated results for the periods presented of BW Ultimate Parent, LLC, the predecessor of Yesway, Inc. for financial reporting purposes. The financial results of Yesway, Inc. have not been included in this press release as it did not engage in any business or other activities prior to the completion of its initial public offering in April 2026. Accordingly, these historical results do not purport to reflect the results of operations of Yesway, Inc. had the initial public offering and related transactions occurred prior to the beginning of the periods included in this press release. Cautionary Note Regarding Forward-looking Statements Some information in this press release contains forward-looking statements that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding the expected timing of the sale of our Iowa and Kansas stores, 2026 guidance, including with respect to same-store sales growth, Adjusted EBITDA, capital expenditures and new store openings, expected growth and future capital expenditures, are forward-looking statements. In some cases, you can identify forward-looking statements by terms, such as “may,” “will,” “would,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these terms or other similar expressions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: volatility in the global prices and availability of oil and petroleum products and general economic conditions, including interest rates; our ability to maintain an adequate pipeline of suitable locations for new stores; our ability to successfully implement our rapid growth strategy; risks associated with new store development; our ability to successfully recruit, hire, and retain qualified personnel; our dependence upon market acceptance by consumers and our failure to offer products that meet our existing customers’ taste and attract new customers; changes to wage regulations and other employment and labor laws; changes in demand for fuel-based modes of transportation and advancements in technologies, such as hybrid and electric vehicles, that significantly reduce fuel consumption related to the public’s current general approach with regard to climate change and the effects of greenhouse gas emissions, among others; our dependence on a limited number of suppliers for the majority of our gross fuel purchases and merchandise; operational hazards and risks normally associated with marketing of petroleum products; hazards and risks relating to the physical effects of weather and climate change; changes to tobacco legislation, potential court rulings affecting the tobacco industry, campaigns to discourage smoking, increases in tobacco and nicotine products taxes and wholesale cost increases of tobacco and nicotine products; the significant influence that Brookwood Financial Partners, LLC continues to have over us, including control over decisions that require the approval of stockholders; and the other important factors discussed under “Risk Factors” in our final prospectus dated April 21, 2026, as filed with the SEC on April 23, 2026 pursuant to Rule 424(b) under the Securities Act of 1933 (the “Prospectus”) and in our other filings with the SEC. The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our ability to control or predict. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. Investor Contact: [email protected] Media Contact:Erin [email protected] Non-GAAP Reconciling Information The following table contains a reconciliation of Net Income to Adjusted EBITDA for the three months ended March 31, 2026, and 2025, respectively: The following table contains a reconciliation of income from operations to Store Contribution for the three months ended March 31, 2026, and 2025, respectively: