Murphy USA (NYSE:MUSA) said it remains on track to open roughly 45 to 50 stores this year and has built a development pipeline intended to support annual openings of about 50 locations in subsequent years, Chief Executive Officer Mindy West said during the company’s third-quarter earnings Q&A call.
The retailer had opened 18 stores year to date, had 55 locations under construction and expected to begin construction on another 15 to 20 sites by the end of January, West said. While the exact timing of openings around year-end remains uncertain, she said stores that do not open by Dec. 31 should enter the company’s 2027 pipeline shortly afterward.
West said Murphy USA aims to make its opening cadence more consistent by 2028 rather than concentrating a large number of openings near the end and beginning of calendar years. The company expects some stores to open early in 2027, followed by a broader group of projects during the remainder of the year.
Fuel Prices, Volumes and Margins
West said elevated gasoline prices and continued supply tightness are creating a more price-sensitive environment for consumers, which she said benefits Murphy USA’s value-focused model. During the third quarter, prices exceeded $4.10 per gallon in 27 states, according to West.
She said the company gained fuel market share during the quarter on both total-gallon and same-store bases. Murphy USA was “plus-6 versus OPIS,” West said, indicating its performance exceeded the industry benchmark even as the broader market suggested flat volumes.
Murphy USA maintained its same-store fuel-volume guidance for a decline of 1% to 3%, although West said the company was encouraged by October volumes that were equivalent to the prior-year period despite hurricane-related store disruptions. She added that sustained high fuel prices could encourage consumers to seek lower-priced fuel options, while a more orderly decline in prices could create opportunities for both margin expansion and gallon growth.
On retail fuel margins, West said the third quarter’s rising-price environment made it difficult for retailers to recover higher costs quickly. Still, Murphy USA’s retail margin was within one cent of the prior-year level, despite what she characterized as a more difficult pricing backdrop.
The company expects fuel supply to remain tight into the fourth quarter. West said a decline in fuel prices could pressure the company’s “uncontrollable” fuel-supply factors, but could also support retail margins, price separation and volumes.
She also addressed renewable identification number, or RIN, pricing, describing RINs largely as a pass-through because their cost is embedded in fuel supply costs. In a normalized environment, Murphy USA expects to earn about 2 cents to 3 cents per gallon from controllable elements of its fuel-supply business. That contribution can exceed the range when supply conditions are tight, she said, given the company’s ability to source fuel through multiple channels.
Supply Volatility Could Extend Into 2027
West said the company expects elevated price volatility and constrained supply conditions to continue into 2027. She cited uncertainty around the duration of the war in Iran, potential infrastructure impacts, deferred refinery maintenance, supply-chain recovery and replenishment of strategic reserves.
Even if the conflict were to end immediately, West said normalization would likely take “months and months,” rather than occur in a matter of weeks. Murphy USA views this environment as favorable to its fuel-supply capabilities because it is not dependent on one source or one geography for fuel procurement, she said.
Competitive conditions remain uneven across the company’s footprint. West identified Colorado and Florida as markets that have faced meaningful pressure, though she said seven of Murphy USA’s top 10 markets posted same-store growth. In Colorado, fuel volumes remain pressured, but cents per gallon have more than offset the gallon decline, she said.
New Stores, Restaurant Test and Inside-Sales Trends
West said recently opened locations are ramping as expected despite weather events and higher fuel prices. Stores opened in the prior build class generated returns of about 15% after tax when fully ramped in 2025, she said, adding that those results occurred in what she called a trough fuel environment.
The company is evaluating additional store formats while retaining a role for its 2,800-square-foot prototype. Potential options include smaller and larger formats, as well as alternatives to traditional raze-and-rebuild projects, such as extensive refreshes and remodels.
Murphy USA is also testing its Murphy Automated Restaurant Solutions, or MARS, program with White Castle. West said the program has more than 100 units in the market and is being expanded deliberately across new markets and formats. She described initial results as encouraging but said it was too early to discuss scalable performance.
On nicotine, West said promotional activity remains high as consumers continue to test different products and shift among traditional nicotine, oral nicotine and newer offerings. The company currently carries one legal vape brand and expects additional legal vape products to become available in 2027.
West characterized the consumer as “selective but resilient.” Regular unleaded fuel sales rose nearly 2.5% during the quarter and increased by roughly twice that rate in September, reflecting trade-down activity from premium and mid-grade fuels as well as customer gains from competitors, she said.
Murphy USA’s panel of more than 2 million Murphy Drive Rewards customers increased annual spending with the company by $50 year over year, driven by fuel spending, while merchandise spending remained roughly flat and was slightly higher, West said.
Non-nicotine same-store performance was primarily affected by beer and lottery, with lottery pressured by comparison against a prior-year $1.8 billion Powerball jackpot. Excluding beer and lottery, non-nicotine same-store margin increased 1% year over year, West said. The company said SNAP-related exposure remains limited to less than 2% of sales and that it has not yet seen a material impact.
QuickChek continues to face near-term pressure, West said, citing its food-forward, higher-cost operating model and concentrated geography. Murphy USA is working to improve pricing, assortment, food-and-beverage execution, labor alignment and promotional capabilities at the banner, she said, adding that the continuing pressure is already reflected in full-year guidance.
About Murphy USA (NYSE:MUSA)
Murphy USA Inc is a U.S. operator of retail fuel and convenience stores. The company sells gasoline and diesel fuel along with tobacco products, packaged beverages, snacks, candy, grocery items, general merchandise and other convenience products. Many locations also offer prepared food and related services.
The company operates stores under the Murphy USA and Murphy Express brands, with a network concentrated primarily in the Southern, Southeastern and Midwestern United States. Murphy USA locations are commonly situated near Walmart stores, while Murphy Express sites generally operate as standalone convenience stores.
