YSWY

• Platform Differentiation and Competitive Position

  • YesWay operates two complementary, regionally trusted brands (Yesway and Allsup's) with strong local loyalty, particularly in rural and suburban markets, creating a hard-to-replicate competitive advantage.
  • The business is positioned as a food service destination, with Allsup's iconic burrito as a core traffic driver, supporting higher margins and repeat customer visits.
  • The company owns a portfolio of strategically located stores on large parcels with strong access and visibility, enabling expansion of forecourts, high-flow diesel lanes, and larger food service formats.
  • The above-average diesel mix (38% of volume) supports stronger, more resilient margins, as diesel demand is less price-sensitive than gasoline.

• Q2 2026 Operational Performance Highlights

  • The quarter delivered record results across all key metrics (fuel gallons, fuel gross profit, inside merchandise sales and gross profit, store contribution), marking the strongest quarter in company history.
  • Same-store inside merchandise growth has been positive for 18 of the past 19 quarters, and same-store fuel gallon growth outperformed core market outlet volume changes, indicating ongoing market share gains.
  • Same-store labor hours declined 2.4% YoY (the fifth consecutive quarterly reduction), supported by standardized processes and technology that allow single-employee operation during non-peak hours, while maintaining customer service standards. 96% of same-store operating expense growth came from credit card fees.
  • 92 new stores have been built since 2020 via new development and rebuild programs. One new store opened in Q2 2026, bringing total store count to 450 (including the 29-store Iowa/Kansas portfolio held for sale).

• Strategic Growth Priorities

  • 1. New store development: Development is concentrated in four core states (Arizona, Oklahoma, New Mexico, Texas), with Arizona as a key near-term priority. The company remains on track to open 6-8 new stores in 2026. The sale of the non-core Iowa/Kansas 29-store portfolio is on track to close by the end of 2026 to sharpen focus on core markets and simplify supply chains.
  • 1. Existing store productivity: The company is upgrading dispensers and adding diesel capacity at existing locations to drive volume and increase the diesel mix. Inside merchandise initiatives include rationalizing low-velocity food service SKUs to reduce complexity, expanding high-margin private label offerings, and selective innovation around the core burrito platform.
  • 1. Selective value-accretive M&A: YesWay has experience integrating over 400 acquired stores, and is actively evaluating opportunities to increase density in core markets. Strong cash generation has increased financial flexibility to pursue opportunities that meet disciplined return criteria.

• Full year 2026 adjusted EBITDA guidance was raised to $235 million to $245 million, up from the prior guidance range of $210 million to $220 million, reflecting the strong Q2 2026 performance. The updated guidance assumes fuel margins will moderate to a low $0.40 per gallon range in H2 2026, consistent with the company's historical average.
• Same-store inside merchandise sales growth guidance is maintained at 1.25% to 3.25% for full year 2026.
• Capital expenditure guidance is maintained at $85 million to $95 million for full year 2026.
• The 2026 new store opening guidance of 6-8 total new stores is maintained, and guidance assumes the Iowa/Kansas portfolio sale will close by the end of 2026.
• Management confirmed confidence in the long-term 130-store five-year growth target, and expects to exceed this target with a mix of organic new builds and acquisitions.

YesWay operates a single convenience retail segment with two core product categories: fuel and inside merchandise. For Q2 2026:

• Inside merchandise: Total sales of $240 million, up 4.4% year-over-year. Same-store sales grew 1.2% YoY (1.5% excluding the 29-store Iowa/Kansas portfolio for sale). Inside merchandise margin expanded 50 basis points YoY to 35.7%. Same-store inside merchandise gross profit grew 2.5% YoY.
• Fuel: Total sales of $673 million, up 52.7% year-over-year. Fuel margin hit 52.6 cents per gallon, up 27.4% YoY from 41.3 cents. Same-store fuel gallons sold grew 1.4% YoY (1.8% excluding the Iowa/Kansas portfolio). Diesel represented 38% of total fuel volume, significantly above the industry average of 27%. Same-store fuel gross profit grew 29% YoY.
• Aggregate segment results: Total same-store combined gross profit for fuel and inside merchandise grew 14% YoY. Store contribution increased 29.5% YoY to $88 million. Adjusted EBITDA grew 35% YoY to $71 million, and net income was $30 million, up from $24 million in Q2 2025.

• Volatility in global oil and fuel prices, driven by factors including geopolitical instability in the Middle East, creates uncertainty for future fuel margins. While elevated volatility currently supports higher margins, margins are expected to moderate, and sustained elevated fuel prices could pressure near-term inside merchandise sales.
• General macroeconomic conditions, changes in consumer demand, and shifting fuel consumption trends could cause actual results to differ from management expectations.
• Execution risk for the company's growth strategy, including new store development, integration of potential acquisitions, and ongoing operational improvement initiatives, could impact performance.

Q: How does management prioritize M&A vs new-to-industry (NTI) organic development, and what is the organizational gating factor for growth? / A: Historically, YesWay focused on M&A in its first five years and organic development over the past five, but is now actively pursuing both opportunities. All opportunities are evaluated based on expected returns: the company targets 50% unlevered IRR on NTI new builds, and over 30% unlevered IRR on build-to-suit projects. All growth is concentrated in the four core Southwestern states, and the 130-store five-year target only includes new builds, with no M&A factored in. Management is confident in hitting the 130-store target.

Q: What has been the change in consumer behavior in recent months, and how did customers respond to recent strategic pricing actions? / A: Q2 2026 saw modestly lower year-over-year in-store traffic, but July same-store inside merchandise sales are trending slightly above Q2 levels. No meaningful trading down in merchandise is observed, with only minimal shifting from premium to mid-grade fuel that is more than offset by margin expansion. Pricing actions taken in 2025 and early 2026 were carefully implemented and have been well received by customers. The core Allsup's burrito price point has not been changed and remains a key differentiator with strong competitive value.

Q: Where is YesWay in the menu optimization process, and how will the cost savings from rationalization be used? / A: Menu rationalization is an ongoing process, with the bulk of current work expected to be completed by the end of 2026. The process involves removing low-velocity SKUs inherited from historical M&A activity to focus on high-volume core products, simplifying store execution and reducing complexity. The back-end system integration of historical price books is now complete. Management plans to introduce small, incremental new food service items around the core burrito platform in Q4 2026, with further rollouts planned for 2027.

Q: What is the maximum comfortable leverage level for an accretive acquisition? / A: YesWay currently has approximately $250 million in total liquidity (roughly $82 million in cash plus $140 million in available revolver capacity) after repaying $40 million in debt year-to-date. For smaller tuck-in acquisitions, cash from the balance sheet will be used with minimal to no leverage impact. For a larger accretive acquisition, the company would be willing to temporarily increase leverage up to 4x, then reduce leverage back to target levels after closing. There are no active acquisitions currently pending.

Q: Why does the guidance imply slower H2 2026 EBITDA growth after the strong first half, and how does YesWay balance fuel volume and margin goals? / A: The guidance assumes fuel margins will moderate to the low 40 cent range in H2, after elevated Q2 margins driven by Middle East geopolitical volatility. Management intentionally avoids underwriting elevated volatile fuel margins into guidance, so any sustained elevated margins would create upside to the forecast. July fuel gallons are positive, same-store inside sales are trending above Q2, so underlying operating momentum remains strong. To balance volume and margin, YesWay has invested in pump replacements (45 stores in 12 months) and diesel expansions (six projects) to drive incremental volume, and the fuel team actively manages pricing to maximize total gross profit dollars while maintaining customer volume.