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Convenience store operator Arko (ARKO) reported second-quarter earnings that beat revenue expectations and met profit forecasts. The company posted revenue of $2.39 billion, surpassing estimates of $2.36 billion. Adjusted earnings per share came in-line with the projected $0.11 per share.
Arko CEO Arie Kotler joins Catalysts to analyze the results and discuss consumer trends.
Kotler attributes the company's stock gains to beating adjusted EPS and guidance estimates, highlighting "the biggest headline finishing the quarter with almost $84 million in adjusted EBITDA" and calling it "a great quarter." However, he acknowledges "tremendous" pressure from a "struggling" consumer, noting decreased transactions and a downturn in the retail sector.
He cites value promotions such as a whole pizza for $4.99 or a free Coke with a $2.99 chicken sandwich purchase. Kotler explains to Yahoo Finance, "Those are the things we have to do in order to help our consumers that are just really getting hurt right now."
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This post was written by Angel Smith