CrossAmerica Cuts Store Count 7%, Sells $10.6M in Property

CrossAmerica Partners ended September with 546 retail locations — 40 fewer than a year earlier, a reduction of roughly 7% — yet the convenience store operator reported some of its strongest operational numbers of the year, according to its third-quarter earnings report.

President and CEO Maura Topper told investors on Thursday's earnings call that the company sold nine stores last quarter, including seven company-operated retail sites and two commission agent sites, as part of an ongoing real estate optimization program. Those nine properties plus another six nonretail parcels brought in $10.6 million in proceeds, Topper said.

That money didn't sit idle. CFO Jonathan Benfield said during the call that the proceeds went toward paying down debt.

Shrinking the network, fattening the margins

Here's the part that looks counterintuitive: fewer stores, better economics. Topper reported that merchandise margin percentage grew by 140 basis points and merchandise gross profit rose 2% during the quarter. The retailer also cut operating expenses and improved its retail fuel margin per gallon.

"Combined with a very strong first half, these results leave us well ahead of last year through the first nine months," Topper said on the call.

That's the arithmetic of a deliberate slim-down. CrossAmerica has been shedding locations for nearly two years, and 2025 marks the company's biggest year ever for property sales, according to the company. The strategy shows no sign of winding down.

"We continue to have a strong pipeline for the balance of the year," Topper said.

What does this change for the c-store operator?

In practice, it converts a sprawling, uneven portfolio into a leaner one with better per-store economics. A 2% merchandise gross profit gain on a network that shrank 7% means the stores that remain are pulling more weight — a pattern worth watching as consolidation continues across the convenience retail channel.

The property sales also arrived during a year of leadership overhaul at CrossAmerica. Topper took over the top role in March. Benfield was named interim CFO the same month and landed the job permanently in July. So the executive team now steering the real estate program has been in place for less than a full fiscal year.

The debt question

For a partnership paying down debt with asset sales, the math is straightforward: $10.6 million in proceeds from one quarter's disposals, redirected straight to the balance sheet. Whether that pace continues depends on the pipeline Topper cited — and on how much of the remaining portfolio fits the optimization program's criteria.

The company expects property sales to keep contributing through the end of 2025, with the real estate program remaining the stated focus despite the record disposal volume already booked this year.