Tear Sheet: FR Refuel LLC

This report does not constitute a rating action. S&P Global Ratings-adjusted EBITDA margins increased 120 basis points year over year to 6.4% for the 12 months ended March 31, 2025. These gains reflect efficiency efforts like reducing food waste, optimizing labor staffing, lowering overhead costs, and enhancing fuel pricing capabilities. These initiatives boosted both cents-per-gallon (CPG; up roughly 1 cent per gallon in the first quarter) and inside sales margins, which have hovered around 37%. However, we expect fuel and inside sales volumes remain soft this year because of lower fuel volumes and volatile consumer spending amid an uncertain economy. We project negative FOCF of approximately $40 million in 2025, consistent with the negative $47.8 million FOCF in 2024. We

...June 23, 2025 This report does not constitute a rating action. We expect FR Refuel LLC's operating efficiency initiatives will lead to higher profitability, with S&P Global Ratings-adjusted EBITDA margins reaching the mid-to-high 6% over the next two years. S&P Global Ratings-adjusted EBITDA margins increased 120 basis points year over year to 6.4% for the 12 months ended March 31, 2025. These gains reflect efficiency efforts like reducing food waste, optimizing labor staffing, lowering overhead costs, and enhancing fuel pricing capabilities. These initiatives boosted both cents-per-gallon (CPG; up roughly 1 cent per gallon in the first quarter) and inside sales margins, which have hovered around 37%. However, we expect fuel and inside sales volumes remain soft this year because of lower fuel volumes and volatile consumer spending amid an uncertain economy. Refuel's significant growth investments will continue to result in negative reported free operating cash flow (FOCF) over the next...

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