SANFORD, NC-The Pantry convenience store chain endured some ups and downs as a result of gasoline prices that slammed its bottom line during the first fiscal quarter of 2007, but the 1,524-store chain remained on track in its acquisition and expansion program, the company reported Thursday. Commenting on the quarterly results in a conference call with financial analysts, the Pantry’s Chairman and Chief Executive Officer Peter Sodini said, “The strategic highlight of the quarter was the exceptional results achieved in our acquisition program.”

Sodini said the company saw positive developments in the quarter despite a plunge in net income to a penny per share, from $1.45 per share in the comparable quarter the year before, which the company attributed to an unusually steep drop in profits on gasoline sales. The Pantry’s profit on gasoline sales plunged to $40 million from $86 million.

Although disappointed by the bottom-line results for the quarter, Sodini said that the the company made positive strides in its long-term expansion strategy, through which it has now acquired or agreed to acquire 133 convenience stores in fiscal 2007. The largest transactions either closed or planned include 24 Sun Stop stores in Florida, Georgia and Alabama; and 16 Angler’s Mini-Mart stores in the Charleston, SC market.

In addition, shortly after the end of the quarter that company officials were discussing Thursday, the company announced a definitive agreement to acquire 66 Petro Express stores in North Carolina and South Carolina. Based on these results and the expected consummation of future deals, Sodini said, the company met or exceeded its goals for the quarter both in terms of the number and the quality of the locations that the company acquired or plans to acquire.

The Pantry is especially pleased with the proposed Petro Express transaction, according to Sodini, who said that the Petro Express locations were unusually attractive because the company “has built a leadership position in the Charlotte metropolitan area,” which the Pantry considers one of the most lucrative markets in the Southeast.

The convenience store chain’s quarterly results “were significantly affected by unusually low gasoline margins relative to our historical seasonal trends,” Sodini commented, adding that the results looked especially low when compared with very strong gas margins a year ago. In addition, the company faced stiff comparisons in both merchandise and gasoline sales when stacked up against the post-Hurricane Katrina period a year ago.

Even so, Sodini said, gasoline margins and comparable store revenue trends improved at the end of the first quarter, and the improvement has carried into the second quarter. For the quarter, the company reported net income of $125,000, compared with $33 million and $1.45 per share a year ago. Sales increased by 5% to $1.4 billion, with merchandise revenues for the quarter rising 10.3% from a year ago to push comparable store sales up 1.9%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.