Moody’s Investors Service increased its ratings outlook on 7-Eleven Inc. to positive, noting the c-store chain has seen improved results despite the recession, The Wall Street Journal reported.
7-Eleven, which has some 6,200 stores in the U.S. and Canada and is owned by Seven-Eleven Japan Co., reports an annual revenue of about $17 billion.
Moody’s senior analyst Charlie O’Shea noted the recent strength of the 7-Eleven chain should continue as the chain focuses on “value, convenience and predictable quality.” He also cited 7-Eleven’s expanded ready-to-eat offerings and store-remodeling effort.
Moody’s also listed concerns, such as “intense” competition, sales concentration in the low-margin areas of tobacco and gasoline, and the money required for store upkeep.
