Murphy USA Continues Growth as Consumers Pay More at the Pump

At a time when inflation and rising fuel prices are leading to consumer belt-tightening and investor anxiety, Murphy USA has found a way to buck the trend, watching its stock price rise from less than $170 per share in early March to more than $245 per share early Wednesday (May 4).

The Arkansas-based fuel chain announced its first-quarter earnings results Tuesday (May 3), highlighting growth across the board, but particularly when it comes to merchandise and fuel gallons sold in the three months ending March 31.

Murphy’s total retail gallons increased 7.8% to 1.1 billion gallons in Q1 2022 compared to Q1 2021, while same-store sales volumes increased 3.8%, according to a press release. Merchandise sales were up 18.4% year over year to $175.7 million in the first quarter, with food and beverage comprising 14.6%, up from 11.5% in 2021.

The company opened six new Murphy Express stores and one QuickChek store in the first quarter of 2022, increasing the store count to 1,686 as of the end of March, the release stated. There are 17 new Murphy Express stores, two new QuickChek stores, and 17 raze-and-rebuild Murphy USA stores under construction.

“Our Q1 results continue to highlight the benefits of Murphy USA’s advantaged and resilient low-cost business model, affordable every-day-low-prices, and incredibly engaged associates who go the extra mile for their customers,” said President and CEO Andrew Clyde in the release. “Through competitive pricing and promotions that resonate with our value-driven customers, we are profitably gaining share in established and emerging categories, as existing customer spending remains strong and new customers seek greater value in the current environment.”

Last week, the U.S. Commerce Department announced that consumer spending was up 1.1% in March, led by increased cash outlays on travel, dining, gasoline and food, although spending on durable goods dropped for the second straight month, led by a dip in vehicle buys.

Read more: Consumer Spending Jumps 1.1% in March, Inflation Up 6.6% YoY

Personal income — including wages and government assistance — was up 0.5% month over month in March, while overall inflation jumped 0.9% from February and 6.6% year over year when food and energy were included (up 5.2% without them).