Murphy's Q2 2025: Unpacking Contradictions in Fuel Trends, Store Strategy, and Merchandise Growth

Fuel Volume Trends and Market Share:
- Murphy USA reported that same-store fuel volumes were down 3.2% in Q2, though July volumes rebounded to 100% of prior year levels.
- The decline is attributed to lower cigarette promotional activity and lower lottery jackpots, along with a lower price and less volatile environment.

Merchandise Contribution and Consumer Behavior:
- Murphy branded stores saw an 8.9% increase in merchandise contribution, excluding cigarettes and lottery, for the quarter.
- Growth in candy and packaged beverages was driven by price increases across the industry, with value delivery to customers contributing positively.

Operational and Cost Management Efficiencies:
- Murphy USA improved operating expenses and general and administrative expenses, matching or falling below the guided range.
- Efforts included optimizing store-level operations, reducing overtime, managing labor rates, and enhancing loss prevention and maintenance.

Retail Fuel Margins and Strategic Pricing:
- Retail margins improved by 50 basis points in 2024 and 80 basis points year-to-date in 2025.
- This is attributed to structural resilience in margins and more aggressive pricing to sustain volume in a low price environment.