Convenience Store & Retail Fuel M&A Update – November 2025

Convenience Store Acquisitions Decline, Integrated Foodservice Technology Piques Buyer Interest

A number of factors have contributed to a decline in convenience store acquisitions through year-to-date (YTD) 2025, including pressures from constrained consumer spending, declining fuel volumes, macroeconomic uncertainty, and geopolitical trade unrest. Fuel demand at the pump has remained soft, with national fuel volumes ticking down due to improved fuel efficiency and the adoption of electric vehicles (EVs) weakening fuel consumption trends nationally. Convenience store owners have sought to diversify operations to offset a constrained fuel volume environment. In 2024, foodservice and merchandise sales reached $335.5 billion, marking a 2.4% year-over-year (YOY) increase despite a sluggish start to the year, according to the National Association of Convenience Stores (NACS).¹ Store operators have increasingly leveraged new technology suites including self-service kiosks and order-ahead software to strengthen foodservice offerings, enhance operational capabilities, improve overall consumer experience, and drive customer engagement. Capstone expects technology implementation, intellectual property (IP), and differentiated foodservice offerings to continue supporting merger and acquisition (M&A) activity and corporate investment strategies within the Convenience Store sector.

While overall C-Store & Retail Fuel M&A transactions are down YOY, the continued strong demand from the strategic consolidators, combined with renewed interest from private equity and a supportive credit environment, signals strong liquidity and a favorable outlook for deal-making in the months ahead.

Jesse BetznerSenior Director, Capstone Partners

Consumer Demand Propels Modernization Through Partnerships and Technology Integration

The continued integration of foodservice offerings and technology has remained a central focus for operators in the Convenience Store sector. In 2024, 52.8% of convenience store operators surveyed leveraged online ordering tools, according to Convenience Store Petroleum’s (CSP) 2025 State of C-Store Foodservice survey.² Additionally, 37.4% of operators utilized self-checkout stations and 28.7% implemented ordering kiosks. These customer experience enhancements are expected to continue as 59.4% of owners planned to adopt foodservice equipment upgrades in 2025, followed by frictionless transactions (41.8%) and mobile ordering (37%). This underscores a broader push among sector players to adopt technology-driven solutions in response to evolving consumer expectations and operational efficiencies. Of note, BP’s (LSE:BP) TravelCenters of America—the fifth largest convenience store by store count—has begun to incorporate technology offerings into its stores across the country. This year alone, TravelCenters of America has implemented 13 pole-mounted kiosks and 32 countertop kiosks across its portfolio, according to a press release.³ The company aims to have 66 total kiosks in place by year-end 2025. TravelCenters has partnered with California-based Tillster, a digital platform for quick service restaurants (QSRs), to support its technology integration. The initial rollout of these systems had resulted in a 70% increase in usage rates, reflecting a strong consumer preference for digital ordering over traditional cashier interactions. Additionally, these kiosks have successfully allowed the company to reallocate labor to other operational areas within its restaurants. The success of TravelCenters of America’s kiosk strategy demonstrates the benefits of technology adoption within the Convenience Store sector, with market participants likely to follow in pursuit of operational efficiencies and margin expansion.

Strategic partnerships and digital innovation have become critical growth levers in the evolving convenience retail landscape. Companies that successfully integrate branded foodservice offerings with modern technology have not only enhanced customer experience but also positioned themselves for long-term competitiveness. Love’s Travel Stops has served as a compelling example of this dual-pronged approach through partnerships with 20 QSR brands, including Hardee’s, Arby’s, Carl’s Jr., and, as of September 2025, Buffalo Wild Wings Go, according to a press release.⁴The Oklahoma-based retailer operates more than 660 travel stops across 42 states. The convenience store chain has been modernizing its stores by incorporating kiosks and order-ahead services at its Arby’s, Carl’s Jr., and most recently, its Hardee’s locations. The Convenience Store sector has illustrated a clear commitment to modernizing foodservice operations through technological enhancements. The dual-pronged investment in equipment and infrastructure has enabled players in the space to capitalize on shifting consumer and acquirer preferences.

Sector and Macroeconomic Headwinds Challenge Convenience Store Acquisitions

Sector M&A has been slightly muted, with convenience store acquisitions dropping by two deals (6.9%) YOY to 27 transactions announced or completed YTD. Shifting consumer behaviors and apprehensive spending have led potential buyers in the sector to adopt a more cautious approach to capital deployment. The emergence of innovative foodservice offerings and elevated customer experience has also contributed to the M&A decline as select key operators have increasingly focused on internal initiatives such as improving operational efficiency through technology adoption. However, sector dealmaking has outpaced the broader Consumer industry on a YOY basis, with industry M&A activity in YTD 2025 falling 23.2% compared to the prior year period.

M&A in the Convenience Store sector has been driven by strategic buyers who have accounted for 92.6% of deal volume to date. This has been led by private strategics who have continued to consolidate the fragmented space, with transaction activity rising from 20 deals in YTD 2024 to 22 in YTD 2025. As of February 2025, 60% of the 152,255 convenience stores in the U.S. were single-store operators, according to a NACS press release.⁵ Strategic buyers are expected to remain acquisitive, extending their presence by targeting smaller operators or divested assets from public players. Of note, Major’s Management acquired 35 Circle K stores from Alimentation Couche-Tard (TSX:ATD) for an undisclosed amount in July 2025. This transaction was the result of a divestiture from Couche-Tard in order to comply with a condition set by the Federal Trade Commission (FTC) from their recent $1.6 billion buyout of GetGo Café + Markets in June 2025. Financial buyer activity YTD has matched the prior year period with two deals. While sponsor dealmaking will likely trail strategic acquirers through year-end 2025, market fragmentation has created ample white space for private equity (PE) firms to capitalize on in the long-term.

Multiples for convenience store acquisitions have contracted, averaging 10.1x EV/EBITDA between 2022 and YTD 2025 compared to 11.9x from 2018 and 2021. This decline has partly stemmed from a decline in the median store count of acquired businesses. The median store count has fallen from 13 in YTD 2024 to eight in YTD 2025—remaining well below 2021’s peak of 15. However, sector participants with differentiated offerings have continued to garner strong valuations from acquirers looking to diversify their revenue streams. Notably, Sunoco (NYSE:SUN), a major energy, infrastructure, and fuel distribution conglomerate, announced its acquisition of Parkland (TSX:PKI) in May 2025 for $10.1 billion, equivalent to 0.5x EV/Revenue and 8.4x EV/EBITDA. The transaction has combined two entities with complementary assets, enabling diversification within Sunoco’s portfolio and geographic footprint.

Improved Offerings and Experiences Help Prop Up Convenience Store Acquisitions

Despite limited deal volume, best-in-class convenience stores have continued to attract acquisition interest. Foodservice offerings, QSR partnerships, and technology implementations have strengthened companies’ appeal to buyers. These acquirers have been actively seeking inorganic growth investments to enhance operational capabilities or expand into new geographic markets. Several standout transactions are highlighted below.

• S&G Convenience Acquires Eight PS Food Marts (September 2025, Undisclosed) – In September 2025, S&G Convenience Stores acquired eight PS Food Mart convenience stores from Folk Oil through its business unit, Toledo 76 (undisclosed). At the time of the transaction, Folk Oil operated approximately 40 convenience stores across south-central Michigan and northern Ohio. This acquisition represents a strategic divestment by Folk Oil, intended to sharpen its geographic focus, stimulate organizational growth, and reallocate internal resources. The eight newly acquired properties have joined S&G’s existing portfolio of more than 60 convenience stores, enhancing the company’s regional presence and market coverage, as they aim to reach their ambitious goal of 150 convenience stores in the next five years.
• RaceTrac to Acquire QSR Conglomerate Potbelly (September 2025, $689 Million, 1.5x EV/Revenue, 8.6x EV/EBITDA) – RaceTrac, the owner and operator of more than 800 convenience stores across 14 states, announced its acquisition of Potbelly (Nasdaq:PBPB) in September 2025 for an enterprise value of $689 million, equivalent to 1.5x EV/Revenue and 8.6x EV/EBITDA, according to a press release.⁶ This represents a ~47% premium to Potbelly’s 90-trading-day volume-weighted average price as of September 9, 2025. Both companies share multiple complementary strengths, including franchising, marketing, operations, and food innovation, that have promoted significant growth opportunities for the combined entity. The transaction demonstrates convenience store operators’ affinity to penetrate the Franchised QSR space through M&A. “We have positioned Potbelly for accelerated franchise-led growth in recent years, and this transaction fortifies our path while delivering certain and immediate value to our shareholders. With RaceTrac’s resources, we will unlock new opportunity for this incredible brand while staying true to the neighborhood sandwich shop experience that makes Potbelly special,” said Bob Wright, President and CEO of Potbelly, in the press release.
• Jacksons Food Stores Acquires 23 Redwood Oil Locations (August 2025, Undisclosed) – Jacksons Food Stores acquired a total of 24 locations from Redwood Oil for an undisclosed amount in August 2025. The transaction includes 23 Redwood convenience store locations and one ExtraMile location, which have provided access to the in-house, made-to-order Mexican food concept, Aztec Grill. Most of the stores feature a full-service kitchen and made-to-order offerings, which was the driving force of the acquisition for Jacksons. These new locations have joined Jacksons’ network of approximately 1,440 convenience stores spanning across 10 states, solidifying the company as the 28^th largest convenience store franchise in the U.S. by store count, according to a press release.⁷ As a result of the deal, Jacksons has nearly doubled its presence in California from 30 to 54 locations. “It’s going to be a great test to learn and see what parts of that program we can move into some of our other sites inside the network. There’s definitely components of Aztec Grill that we could probably put into certain stores in our network pretty fast,” said Todd Michael, Senior Vice President of Merchandising, Marketing, and Procurement at Jacksons, in a press release.⁸

Capstone’s Ren Nebel Speaks to Fuel Distribution Tailwinds

Ren Nebel, Managing Director

Ren Nebel serves as a Managing Director within Capstone’s Energy, Power, & Infrastructure Investment Banking Group. Ren has over 15 years of experience in capital markets and M&A transactions. Prior to joining Capstone, Ren founded and led his own boutique financial advisory firm, Navesink, which focused on founder and entrepreneur-owned companies across a variety of Energy sub-verticals, including Fuel Distribution, Oilfield Services, Industrial Services, Renewable Fuels, Pipelines, Terminals, Transportation, and Refining. Please contact Ren Nebel at rnebel@capstonepartners.com or 908-963-8911 with any further questions.

Can you share some of your background in the Energy & Fuel Distribution space?

In 2022, closed on the sale of Kamps Propane for $240 million which is the largest private fuel distribution transaction in the Western U.S. in the past decade. I have advised large fuel distributors on buyside processes and I am constantly meeting with refiners and downstream companies in Houston. Currently, I am advising one of the largest residential fuel distributors in the Northeast.

What do you like most about working with business owners in these sectors?

One thing I appreciate about business owners in the Energy & Fuel Distribution sector is that the majority of them are down-to-earth entrepreneurs that have built durable infrastructure businesses over decades that are rooted in their local communities.

What are the current major tailwinds in the Fuel Distribution market? What are the major headwinds?

Some current Fuel Distribution market tailwinds are the easing interest rate environment, advances in semi-autonomous driving technology, supportive policy, and public sentiment has accepted the role hydrocarbons play driving the U.S. economy today and for generations to come. The most prominent headwinds have been the rising cost of insurance for over-road transport, skilled driver and labor shortness, and refinery shutdowns/conversions constraining supply in certain PADDs [Petroleum Administration for Defense Districts].

How do you see the Fuel Distribution sector being impacted by energy transition (EV, biofuels, etc.) over the next 5-10 years?

Fuel distribution will be the beneficiary of increased biofuels adoption because biofuels are transported nearly identically to traditional fuels, with the exception of pipeline. EVs are perhaps the largest threat to the industry, but adoption is slowing and there are plenty of end markets where electrification is un-economic.

How do you view M&A activity in the Fuel Distribution sector in the near future?

PE has awoken in the last two years to the beauty of fuel distribution companies, which are capital intensive and in many cases do not take meaningful commodity risk. You have and will continue to see PE competing for and winning Fuel Distribution assets.

Technology adoption and increased foodservice offerings have served as catalysts to drive future growth and modernization in the Convenience Store sector. Businesses that expand their operational capabilities to address the shifting consumer expectations of the convenience store channel are expected to see increased buyer interest, further supporting a push towards positive convenience store acquisition activity through year-end and into 2026.

To discuss foodservice technology integration into convenience stores, provide an update on your business, or learn about Capstone’s wide range of advisory services and convenience store acquisitions knowledge, please contact us.

Matt Milone, Analyst, was the lead Market Intelligence contributor to this article.

Endnotes

1. National Association of Convenience Stores, “C-Store Foodservice Delivered Exceptional Growth in 2024,” https://www.convenience.org/Media/Press-Releases/2025-Press-Releases/C-Store-Foodservice-Delivered-Exceptional-Growth-i#, accessed October 7, 2025.

2. Convenience Store Petroleum, “2025 Outlook Survey: Convenience Retailers Are Mostly Optimistic About Business Conditions,” https://www.cspdailynews.com/company-news/2025-outlook-survey-convenience-retailers-are-mostly-optimistic-about-business, accessed October 6, 2025.

3. Convenience Store Petroleum, “TravelCenters of America is introducing ordering kiosks,” https://www.cspdailynews.com/technologyservices/travelcenters-america-introducing-ordering-kiosks, accessed October 6, 2025.

4. Convenience Store Petroleum, “Love’s Travel Stops adds its first Buffalo Wild Wings Go,” https://www.cspdailynews.com/foodservice/loves-travel-stops-adds-its-first-buffalo-wild-wings-go, accessed October 6, 2025.

5. National Association of Convenience Stores, “U.S. Convenience Store Count,” https://www.convenience.org/Research/Convenience-Store-Fast-Facts-and-Stats/FactSheets/IndustryStoreCount, accessed October 6, 2025.

6. Potbelly, “Potbelly Corporation to be Acquired by RaceTrac in Approximately $566 Million Transaction,” https://investors.potbelly.com/news-releases/news-release-details/potbelly-corporation-be-acquired-racetrac-approximately-566, accessed October 6, 2025.

7. Convenience Store Petroleum, “Jacksons Food Stores acquires 24 c-stores from Redwood Oil,” https://www.cspdailynews.com/mergers-acquisitions/jacksons-food-stores-acquires-24-c-stores-redwood-oil, accessed October 6, 2025.

8. C-StoreDive, “Jacksons acquires 24-store chain in Northern California,” https://www.cstoredive.com/news/jacksons-acquires-24-stores-california-redwood-market/758051/, accessed October 6, 2025.