Murphy USA expands stores, tests kiosks amid merchandise pressure

By Tom Whitfield

Murphy USA reported $176 million in third-quarter net income, up about 35% year over year, while merchandise contribution fell 2.8% to $234.5 million.

Murphy USA released its third-quarter earnings on Thursday. The company also reported increased fuel contribution during the quarter. Murphy USA’s earnings discussion centered on two operating priorities: adding locations and testing whether an automated food format fits the store model.

How significant is the White Castle kiosk rollout?

In August, Murphy USA said it was testing automated White Castle kiosks at select stores. The company did not disclose the number of test locations. During the earnings call, West said Murphy USA had more than 100 of the machines in the market.

West said it was too early to draw conclusions. She added: “the initial results that we’ve seen so far are encouraging.”

Murphy USA said customers place orders on a touchscreen interface and receive hot food in about two minutes. The company said the kiosks automate preparation, heating and delivery within a self-contained system. That lets Murphy USA offer hot food without a kitchen or dedicated restaurant space.

West said the company wants to assess:

• The significance of customer demand
• Whether the kiosks fit Murphy USA’s operating model
• Whether store-level economics make sense

What does Murphy USA’s store expansion target require?

Murphy USA opened four new Murphy stores in Q3. By the end of the first nine months of 2026, the company had opened 15 Murphy sites and one QuickChek.

President and CEO Mindy West said two more stores opened after the quarter ended. Those openings raised the year-to-date total to 18, while Murphy USA remained behind pace for its goal of 45-50 new locations this year.

West said the company still expects to reach that goal. She added that Murphy USA hopes its 2026 openings will finish just above the lower end of the 45-50 guidance range.

She said construction and opening schedules can affect the final count. West said: “It’s very difficult to predict what stores are going to open December 31, for example, versus January 2.”

How much of the merchandise decline came from nicotine promotions?

Murphy USA reported $234.5 million in Q3 merchandise contribution, down 2.8% year over year. The company said one reason for the decline was its decision to discontinue a nicotine pouch promotion. Murphy USA said the promotion had boosted sales in the category during Q3 2025.

Murphy USA reported that same-store nicotine contribution fell from around $23,000 per store per month to $21,000 per store per month. It also reported that non-nicotine contribution remained flat year over year on a same-store basis.

What should Murphy USA prove next?

The next checkpoint is the year-end store count, because West said Murphy USA still expects to reach its 45-50 location goal despite schedule uncertainty. The kiosk rollout adds a separate test: early demand must support Murphy USA’s operating model and produce workable store-level economics.

West’s description of encouraging initial results leaves both tests unresolved. Murphy USA must show whether late openings can lift its store count toward 45-50 and whether the kiosk rollout can generate demand that works without a kitchen or dedicated restaurant space.