Arko Corp

ARKO Corp., the parent company of regional convenience store chains including E-Z Mart, Fas Mart, Village Pantry, and Scotchman, has converted 471 company-operated retail stores to independent dealer locations since launching its dealerization initiative in 2024. The company reported second-quarter revenue of $2.35 billion, up from $2.00 billion in the same period of 2025, driven by higher wholesale fuel supply volume and elevated fuel prices. Second-quarter site operating expenses decreased by $16.6 million, or 9.4%, compared to the same quarter of 2025, partly due to $25.8 million in reduced expenses from stores closed or converted to dealer locations. CEO Arie Kotler noted that around 70 additional stores are set for conversion or have already been converted since the quarter ended. The strategy comes as the national average for a gallon of regular gas reached $4.01 as of August 11, 2026, up from around $3.14 a year earlier, and inside transactions at convenience stores fell 1.9% year over year in the first half of 2025, according to NACS, while credit and debit card fees hit a record $21.3 billion.

ARKO Corp. reported second quarter 2026 net income of $9.4 million, down from $20.1 million a year earlier, and reaffirmed its full-year 2026 Adjusted EBITDA guidance of $245 million to $265 million. Adjusted EBITDA for the quarter was $72.0 million compared to $76.9 million in the prior year period, while first-half Adjusted EBITDA rose 14.0% to $122.9 million. Subsequent to quarter end, the Company’s subsidiary ARKO Petroleum Corp. announced an agreement to acquire the business of U.S. Petroleum Partners, LLC, a transaction expected to add approximately 280 million gallons of annual fuel volume and approximately $30 million of annualized Adjusted EBITDA. The Board declared a quarterly dividend of $0.03 per share payable on August 31, 2026 to stockholders of record as of August 20, 2026.

Consumer confidence saw a marginal improvement in June but remains near historic lows, prompting a recommendation for defensive consumer staples stocks. The consumer confidence index rose to 91.2 from a downwardly revised 90.6, while the University of Michigan's consumer sentiment index increased to a final reading of 49.5 from 44.8. The uptick follows a temporary halt in U.S.-Iran hostilities that eased oil prices, though inflation and labor market concerns persist. Private sector payrolls added 98,000 jobs in June, below estimates, and markets are pricing in a 25-basis-point Federal Reserve rate hike by year-end. Zacks Investment Research highlights John Wiley & Sons, Tyson Foods, Arko Corp., and The New York Times Company as low-beta picks with positive earnings estimate revisions and Zacks Ranks of 1 or 2.

U.S. inflation surged past 4% in May for the first time since early 2023, driven by higher energy prices from the Middle East conflict, making a Federal Reserve rate hike likely. Zacks Investment Research recommends four defensive stocks with positive earnings estimate revisions and strong Zacks Ranks: Duke Energy, Coca-Cola, Arko Corp., and The New York Times Company. Duke Energy has a beta of 0.39 and a dividend yield of 3.37%, Coca-Cola has a beta of 0.35 and a yield of 2.63%, Arko Corp. has a beta of 0.98 and a yield of 1.56%, and The New York Times Company has a beta of 0.95 and a yield of 1.29%. The personal consumption expenditures price index rose 4.1% year over year in May, with core PCE up 3.4%, the highest since October 2023. Markets are pricing in a 25-basis-point rate hike by year-end, which could weigh on the economy and keep markets volatile.