Benjamin Wood's questions to ARKO (ARKO) leadership • Q2 2025
Question
Benjamin Wood of BMO Capital Markets asked for clarification on the pace of the dealerization program, questioning if the timeline was extending and if the $20 million savings target covers the entire program. He also requested details on the new store format's size and labor model, and what portion of the remaining stores could be remodeled.
Answer
CFO Rob Giammatteo confirmed the "in excess of $20 million" operating income benefit is for the fully executed program. CEO Arie Kotler stated the pace is on track and very successful, with any delays related to ensuring dealers are fully licensed. Kotler described the new format as having a shared labor model requiring just one person for the foodservice concept and noted that the majority of the retained retail stores are expected to be suitable for the new, customizable format.