Par Pacific Grows Retail Despite Quiet Q3: Three Numbers That Matter

Par Pacific's net income rose more than 35% year over year in the third quarter, and President and CEO William Monteleone told investors the company's balance sheet is now in the strongest position in its history. The Houston-based operator, whose retail arm runs Hele and Nomnom stores across Hawaii, Washington and Idaho, also expects its sale of Laramie Energy to close by the end of the year.

Most of the earnings release and call covered Par's fuel business. But the retail details management did share point to a segment compounding steady gains rather than chasing splashy acquisitions. Three numbers from the Q3 data show where that growth is coming from — and what practitioners can take from it.

What drove the 1.9% in-store sales gain?

In-store sales increased 1.9% year over year at Par's retail sites, Monteleone said on the earnings call. The company has not announced large retail acquisitions or shared aggressive new-to-industry store targets, yet it still plans to expand its footprint and build on those gains.

One proof point: a new store in Post Falls, Idaho, is exceeding expectations, Monteleone said. The site is, in his words, "demonstrating the value of our differentiated food and merchandising strategies."

For operators, the takeaway is straightforward. Par is validating that a focused food and merchandising playbook can carry a new site past its opening projections without acquisition spending.

Why is foodservice up 11%?

Monteleone was explicit about where at least part of the in-store increase originated.

"Our enhanced food offering remains a key driver of in-store performance," he said during the call.

Third-quarter food sales climbed 11% year over year. Fresh food now accounts for more than 10% of in-store sales at Par's stores, and management believes that share can climb higher.

"There is plenty of room to grow this valuable revenue stream," Monteleone said.

The 11% figure matters because it shows food outpacing total in-store growth by a wide margin. As fresh food crosses the 10% threshold of in-store sales, the mix is shifting — the center of the store is doing less of the work.

How did fuel volume hold up at high prices?

Par's gains did not stop at the store door. Same-store fuel volumes rose 2.1% year over year, Monteleone reported, totaling more than 33 million gallons sold in the quarter.

With fuel prices still elevated compared with a year ago, holding and growing volume is a notable accomplishment on its own. Consumers typically pull back at the pump when prices rise; Par's shoppers did not.

That volume performance carried the retail segment's quarterly fuel sales past $162 million, according to the Q3 filing.

What changes going forward?

The quarter leaves Par with three moving parts working at once: modest in-store growth, double-digit foodservice expansion and volume gains at high prices. Monteleone's comments signal the company will keep pushing the fresh-food share of in-store sales higher while it evaluates additional sites, with the Laramie Energy sale expected to close by year's end and further strengthen that record balance sheet.