Murphy USA Delivers Strong Q1 as Expansion Continues, While QuickChek Faces Headwinds

Key Takeaways:

• Murphy USA’s core business is performing at a high level, driven by fuel margin expansion and consistent inside sales growth
• New store development remains a primary growth lever, with a steady pipeline of openings underway
• QuickChek represents a drag on overall performance, with restructuring efforts focused on improving margins and operational discipline

Murphy USA reported a strong start to 2026, with first-quarter net income more than doubling year-over-year to $136.3 million, up from $53.2 million in Q1 2025. The performance highlights the resilience of its low-cost, high-volume operating model, particularly amid renewed volatility in fuel markets.

Fuel margins expanded significantly to 35 cents per gallon (up from 25.4 cents), while total retail fuel volumes increased 2.1%. On the inside sales front, merchandise contribution rose 7.3% to $210.2 million, supported by strong nicotine category performance, even as discretionary spending remains pressured.

Murphy continues to prioritize organic growth, remaining on track to open between 45 and 55 new stores in 2026. The company has already opened six locations in Q1, with 18 currently under construction and additional sites expected to break ground in the near term.

However, not all segments of the business are performing equally. While the core Murphy USA banner continues to expand steadily, its QuickChek brand is facing ongoing challenges. Store count has declined from 157 locations at acquisition in 2021 to 148 today, with recent closures outpacing openings and traffic trends remaining soft.

Management has acknowledged margin and traffic pressures at QuickChek, citing increased competition from QSR operators in the Northeast. In response, the company is simplifying menus, focusing on core food offerings, and shifting toward a more margin-disciplined, sales-driven operating approach.