Thanks to better weather in Q2, c-stores should see improved results.
Wells Fargo Securities LLC predicts that improved weather conditions in the second quarter should result in solid merchandise same store sales.
“Based on our analysis, we think weather conditions overall were slightly better than historical averages for our c-store coverage universe, said Bonnie Herzog, managing Director, beverage, tobacco and convenience store research for Wells Fargo.
For example, compared to the same period last year, weather in the Pantry’s and Casey’s locations fared much better, while Susser Holdings Corp.’s (SUSS) locations faced worse weather.
“We believe Q2 results will broadly improve sequentially given the Easter shift and generally improved weather conditions. We maintain our Outperform rating on The Pantry and Market Perform ratings on Casey’s, CST and SUSS,” Herzog added.