7-Eleven Inc. grew U.S. same-store merchandise sales 0.6% in the first half of fiscal 2026, according to second-quarter earnings from parent company Seven & i Holdings. Merchandise gross margin rose 0.3 percentage points to 33.5%. Executives credited expanded hot food offerings, better product quality and the ongoing shift of company-operated stores to franchised sites.

The results come as 7-Eleven pushes ahead with its North Star transformation plan. The plan aims to restore profitability before a potential 2027 IPO by remodeling hundreds of stores, growing the franchise and wholesale networks and closing unprofitable locations. CFO Tetsuya Takagi said upgraded open-air cases and expanded hot food offerings are driving larger baskets. Same-store fresh food sales fell 0.3% in Q2, compared with a 3.9% drop in Q1. Sales through the 7NOW delivery platform rose 15.6% to $550 million in the first half.

Franchising is also starting to pay off. Stores converted to franchises in fiscal 2025 saw merchandise sales rise by low-to-mid single digits, and their margins improved significantly. 7-Eleven plans to convert roughly 2,600 stores to franchises through 2030, which would raise its franchise ratio to about 80%.

The North Star plan calls for (fiscal 2026):

  • 200 underperforming store closures: 162 completed
  • 205 new stores: 69 opened
  • 390 franchise conversions: 86 completed
  • 350 wholesale conversions: 79 completed

Altogether, 7-Eleven plans to exit 645 North American stores this fiscal year. That total combines the 200 underperforming closures, the 350 wholesale conversions and 95 other closures tied to franchise terminations and other contractual situations.

As of Q2, 7-Eleven still has to close or rebrand 404 more stores to hit its goal of 645 closures this fiscal year. Closures are running well ahead of the rest of the plan: 162 of 200 are done, compared with 69 of 205 new store openings. Stores converted to franchises last year posted sales gains, a sign the plan is starting to pay off.

If you would like to discuss how this update may impact your acquisition or disposition strategy, please reach out to the Knipp Wolf Net Lease Group.

Source: C-Store Dive