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Arko Corp. stays a 'Buy' despite weak quarter and higher debt from USPP acquisition

Analyst Insights
11 Aug 2026
Seeking Alpha
View Source
Neutral
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Arko Corp. remains a 'Buy' recommendation despite a challenging quarter marked by a 5.7% decline in retail fuel volume and increased leverage following its acquisition of USPP. The acquisition adds 280 million gallons in wholesale fuel volume but raises debt to 3–3.5x EBITDA, causing concerns about asset intensity. However, the wholesale expansion is expected to offset retail volume declines, supporting future earnings. The revised sum-of-the-parts valuation sets a fair value of $7.40 per share, suggesting nearly 60% upside if the company normalizes performance and meets guidance.

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