CrossAmerica Partners LP (CAPL): Business Model Canvas [Dec-2025 Updated]

You're looking to really understand how CrossAmerica Partners LP (CAPL) actually makes its money, right? Honestly, their model is a smart hybrid: it blends the steady, predictable income from owning real estate and distributing fuel to about 1,800 locations with a push into higher-margin retail, which brought in $80.0 million in gross profit from their retail segment in Q3 2025 alone. It's not just about gas; it's about owning the land and capturing that convenience store dollar, supported by major partners like ExxonMobil and Dunkin'. This canvas breaks down exactly how they balance that stable base-like their $42.5 million net gain from asset sales in the first nine months of 2025-with their dealer relationships and logistics network, so you can see the whole picture.

CrossAmerica Partners LP (CAPL) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep CrossAmerica Partners LP running day-to-day. These aren't just names on a contract; they represent massive physical and financial flows.

Major Oil Companies for Branded Fuel Supply

CrossAmerica Partners LP maintains well-established relationships across its geographic footprint covering 34 states. The Partnership distributes branded and unbranded petroleum to approximately 1,600 locations as of recent reports, while owning or leasing approximately 1,000 sites. CrossAmerica Partners ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and is in the top 10 for additional brands. Key partners include ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66.

Here's a snapshot of the wholesale fuel distribution activity for the third quarter of 2025:

Independent and Lessee Dealers Operating CAPL-Supplied Sites

The structure involves continuous optimization between wholesale and retail segments, affecting the dealer base. For instance, the wholesale volume decline in the third quarter of 2025 was 5%, primarily due to the conversion of certain lessee dealer sites to the Partnership's retail class of trade. Conversely, divestment activity sometimes converts company-operated sites into independent dealer locations while maintaining the fuel supply relationship.

• Wholesale volume decline Q3 2025 attributed to site conversion: 5%
• Net loss of independent dealer contracts contributed to wholesale volume decline in Q2 2025.
• Divestitures in Q3 2025 converted some sites to independent dealer locations with continued fuel supply.

National Food and Retail Brands at Convenience Stores

CrossAmerica Partners LP operates convenience stores paired with prominent national brands. The Partnership's 7 convenience store brands offer food, essentials, and car washes at more than 250 locations across 10 states. Specific national brand pairings include Dunkin', Subway, and Arby's.

Financial Institutions for the CAPL Credit Facility

The CAPL Credit Facility is a key financial partnership supporting operations and capital structure management. The leverage ratio under this facility has been actively managed through debt paydowns and asset sales.

Finance: draft 13-week cash view by Friday.

CrossAmerica Partners LP (CAPL) - Canvas Business Model: Key Activities

You're looking at the core engine of CrossAmerica Partners LP, the day-to-day work that keeps the fuel flowing and the stores running, based on the latest numbers through the third quarter of 2025.

Wholesale motor fuel distribution across 34 states is a major pillar. CrossAmerica Partners LP distributes fuel to approximately 1,600 locations across its geographic footprint covering 34 states. For the third quarter of 2025, the wholesale segment distributed 177.7 million gallons of motor fuel. This volume represented a 5% decline compared to the 186.9 million gallons distributed in the third quarter of 2024, a change largely attributed to site conversions to the retail segment. The wholesale segment's gross profit for Q3 2025 was $24.8 million, a 10% decrease year-over-year, with wholesale motor fuel gross profit specifically at $15.7 million. The fuel margin per gallon in this segment settled at $0.088 for Q3 2025, down from $0.09 in Q3 2024. To be fair, CrossAmerica Partners LP remains one of ExxonMobil's largest distributors by fuel volume in the United States.

The second key activity involves operating and managing convenience retail sites. The retail segment generated a gross profit of $80 million in the third quarter of 2025, down 4% from $83.6 million in Q3 2024, primarily due to lower motor fuel gross profit. However, merchandise performance was strong; merchandise gross profit increased 5% to $32 million. The merchandise gross profit percentage improved to 28.9% in Q3 2025, up from 27.9% in Q3 2024. Same store merchandise sales excluding cigarettes saw a 4% increase for the quarter. The average company operated site count saw a 4% decline year-over-year for Q3 2025.

Strategic real estate rationalization and asset sales is a continuous activity used to manage the portfolio and debt. During the three months ended September 30, 2025, CrossAmerica Partners LP sold 29 properties, bringing in $21.9 million in proceeds and realizing a net gain of $7.4 million. This compares to a net gain of $4.7 million from asset sales in the third quarter of 2024. In the second quarter of 2025 alone, the company sold 60 properties for $64.0 million in proceeds, resulting in a net gain of $29.7 million, which helped reduce debt by more than $50 million. As of June 30, 2025, the company held approximately $14 million in assets held for sale.

Finally, supply chain and logistics management for fuel delivery underpins the wholesale operation. This involves managing relationships with major oil brands and optimizing sourcing. The wholesale motor fuel gross profit for Q3 2025 was $16.9 million, and the fuel margin decreased 2% year-over-year to $0.088 per gallon. Improved product sourcing costs provided some offset to the lower margins during the quarter.

Here's a quick look at the segment financial performance for Q3 2025:

The operational focus on the retail side is evident in the margin improvements:

• Merchandise gross margin percentage: 28.9% (Q3 2025) vs. 27.9% (Q3 2024).
• Retail fuel margin per gallon: $0.384 (Q3 2025) vs. $0.406 (Q3 2024).
• Same store merchandise sales excluding cigarettes: +4% (Q3 2025).

The asset rationalization activity is quantified by the transactions completed:

• Q3 2025 properties sold: 29 for $21.9 million.
• Q2 2025 properties sold: 60 for $64.0 million.
• Q1 2025 properties sold: 7 for $8.6 million.

Finance: draft 13-week cash view by Friday.

CrossAmerica Partners LP (CAPL) - Canvas Business Model: Key Resources

You're looking at the core assets CrossAmerica Partners LP relies on to run its business as of late 2025. These aren't just line items; they are the physical and financial foundations supporting their operations across the US.

The real estate footprint is central to the CrossAmerica Partners LP model. They maintain an extensive real estate portfolio, which includes approximately 1,100 owned or leased sites across 34 states. This physical presence is critical for their wholesale fuel distribution and convenience store operations. Also key is the reach of their distribution network; CrossAmerica Partners LP distributes motor fuel to approximately 1,600 locations. This network includes significant relationships with major oil brands like ExxonMobil, where CrossAmerica Partners LP ranks as one of their largest distributors by fuel volume in the United States.

Financially, liquidity management is a clear resource focus. As of October 31, 2025, after accounting for debt covenant restrictions, CrossAmerica Partners LP had approximately $232.6 million available for future borrowings under the CAPL Credit Facility. This availability supports ongoing operations and strategic flexibility. The credit facility itself is a major resource, with an outstanding balance of $705.5 million as of September 30, 2025.

Managing interest rate risk through financial instruments is another vital resource. CrossAmerica Partners LP has strategically hedged a significant portion of its variable-rate debt. As of the third quarter of 2025 discussions, more than 55% of the current credit facility balance was swapped to a fixed rate. This hedging provides a degree of predictability in financing costs, which is important in fluctuating rate environments. The blended fixed rate on this swapped balance was approximately 3.4%, while the effective interest rate on the total capital credit facility at the end of the third quarter was 5.8%.

You can see the scale of these resources and related metrics in this snapshot:

The ongoing real estate optimization efforts are directly impacting the asset base. For the nine months ended September 30, 2025, CrossAmerica Partners LP sold 96 properties for $94.5 million in proceeds, resulting in a net gain of $42.5 million. These divestitures are a resource management action, focusing the portfolio quality. The company was in compliance with its financial covenants under the credit facility as of September 30, 2025.

The key resource strength is also reflected in their distribution coverage:

• Distribution Coverage Ratio (Current Quarter Q3 2025): 1.39x
• Distribution Coverage Ratio (Trailing 12 Months ended Sept 30, 2025): 1.00x

This coverage shows how much distributable cash flow covered the distributions declared for the third quarter of 2025.

Finance: review the impact of the $42.5 million in net gains from asset sales on the Q4 2025 cash flow projection by next Tuesday.

CrossAmerica Partners LP (CAPL) - Canvas Business Model: Value Propositions

You're looking at the core strengths CrossAmerica Partners LP offers its stakeholders, built on a foundation of fuel distribution and real estate. These aren't abstract ideas; they are concrete numbers reflecting their operational model as of late 2025.

Reliable, multi-branded fuel supply for dealers and agents

CrossAmerica Partners LP positions itself as a premier provider, serving a wide network of dealers and agents across the United States. This reliability is backed by established relationships with major oil companies. The company distributes branded and unbranded petroleum to approximately 1,600 locations.

The value here is the breadth of supply partnerships, which include:

• ExxonMobil (CrossAmerica Partners LP ranks as one of ExxonMobil's largest U.S. distributors by fuel volume)
• BP
• Shell
• Marathon
• Valero
• Phillips 66

Diversified retail offering of fuel, merchandise, and services

Beyond fuel, the retail segment offers a mix of merchandise and services, which helps diversify revenue streams. For the third quarter ended September 30, 2025, the Retail Segment generated a gross profit of $80.0 million. The focus on merchandise is evident in the results; merchandise gross profit increased by 5% to $32 million in Q3 2025. Furthermore, the merchandise gross margin percentage improved strongly, up approximately 100 basis points over the prior year for the same quarter. This is supported by pairing convenience stores with national brands such as Dunkin', Subway, and Arby's at some locations.

Real estate ownership providing stable rental income

A key component of the value proposition is the ownership and leasing of real estate assets, which provides a base of stable rental income. CrossAmerica Partners LP owns or leases approximately 1,100 sites. The company actively manages this portfolio through optimization efforts. During the three months ended September 30, 2025, CrossAmerica sold 29 properties for $21.9 million in proceeds, realizing a net gain of $7.4 million. For the first nine months of 2025, a total of 96 properties were sold for $94.5 million in proceeds.

Financial stability with a leverage ratio of 3.56x (September 30, 2025)

The Partnership demonstrates a commitment to financial discipline, evidenced by its improving leverage profile. Leverage, as defined in the CAPL Credit Facility, stood at 3.56 times as of September 30, 2025, a reduction from 4.36 times at December 31, 2024. This financial management supports the ability to maintain distributions, with the Q3 2025 quarterly distribution declared at $0.5250 per limited partner unit. Here's a quick look at some key Q3 2025 metrics:

Cash interest expense also saw a material benefit, decreasing from $13.7 million in Q3 2024 to $11.3 million in Q3 2025, partly due to the lower average outstanding debt balance.

Finance: draft 13-week cash view by Friday.

CrossAmerica Partners LP (CAPL) - Canvas Business Model: Customer Relationships

You're managing a network that spans both direct operation and independent partnerships, so the relationship approach has to be dual-focused. For the wholesale side, CrossAmerica Partners LP maintains supply relationships even after asset sales.

Dedicated relationship management for wholesale dealers.

CrossAmerica Partners LP ensures continuity of supply even when divesting physical assets. For instance, substantially all of the 29 properties sold during the third quarter of 2025 maintained a supply relationship post-sale with CrossAmerica Partners LP. This strategy of maintaining the fuel supply contract while selling the real estate is key to the wholesale relationship structure.

The ongoing transition between segments impacts volume metrics. For the three months ended September 30, 2025, wholesale motor fuel gross profit declined 7%, primarily driven by a 5% decrease in wholesale volume distributed, a portion of which is due to wholesale locations converting to retail. For the nine months ended September 30, 2025, a total of 96 properties were sold for $94.5 million in proceeds.

The structure of these wholesale relationships is supported by digital tools:

• Dealer Portal access is available 24/7, 365.
• Portal allows viewing of Account Balance and Fuel Invoices.
• Dealers can access Real Estate Invoices & Statements and End of Year Reports.

Transactional, self-service model at company-operated retail sites.

At the company-operated sites, the relationship is direct and transactional, focused on site performance. The average company-operated site count for the third quarter of 2025 saw a 4% decline compared to the third quarter of 2024. This reflects the ongoing real estate rationalization effort. Retail operating expenses for the segment decreased 3% or $1.6 million in Q3 2025, largely driven by that 4% decline in the average company-operated site count.

Fuel volume at these sites reflects the direct operational relationship. For the third quarter of 2025, CrossAmerica Partners LP distributed 141.8 million retail fuel gallons, down from 148.4 million gallons for the third quarter of 2024. Still, same store merchandise sales excluding cigarettes increased 4% for the third quarter of 2025 versus the prior year period.

Here's a quick look at the operational shifts affecting the direct customer base as of late 2025:

Support for dealers to build solid businesses.

Support for dealers, particularly those who remain supplied post-sale, centers on providing necessary operational data and managing the real estate component. The Dealer Portal is the primary self-service mechanism for this support. Dealers can access Pricing Notifications and Support documentation through this platform. The asset rationalization strategy, which involved selling 96 properties for $94.5 million in proceeds through the first nine months of 2025, is framed as enhancing the long-term quality of the portfolio, which indirectly supports the remaining supply relationships.

For example, the conversion of certain lessee dealer sites to company-operated sites impacts the wholesale segment's rent gross profit, which decreased 15% in Q1 2025 compared to Q1 2024 due to these conversions and site sales.

CrossAmerica Partners LP (CAPL) - Canvas Business Model: Channels

You're looking at how CrossAmerica Partners LP gets its fuel and convenience products to the end-user, which is really about their physical footprint and distribution muscle. Honestly, it's a dual-pronged approach: moving massive volumes of fuel through a wholesale network and managing high-margin retail through company-owned spots.

The distribution backbone is extensive. CrossAmerica Partners LP distributes branded and unbranded petroleum for motor vehicles across a geographic footprint covering 34 states. This fuel gets moved to approximately 1,800 locations in total.

Here's a quick look at the scale of the operation based on recent figures:

The company-operated convenience stores are where they capture the higher merchandise margin. CrossAmerica Partners LP operates its own retail locations under 7 convenience store brands. These stores offer food, essentials, and car washes across more than 250 locations in 10 states. As of the end of the second quarter of 2025, the retail segment ended the period with 597 sites.

The focus here is definitely on driving in-store sales, which is why they are investing in food service. For instance, the retail segment reported a 5% increase in merchandise gross profit for the third quarter of 2025. You should note that they operate 46 branded food locations within this portfolio, with over 100 locations featuring their proprietary Made to Cook Food Program. The Q3 2025 gross profit for the entire retail segment hit $80 million.

The third channel involves commission agent locations, which are part of the overall owned/leased portfolio that is actively being optimized. These are sites where CrossAmerica Partners LP maintains a fuel supply relationship but the operation is run by a third party under a commission agreement.

• Wholesale distribution network to independent and lessee dealers.
• Company-operated convenience stores (over 250 branded locations).
• Commission agent locations for fuel and merchandise sales.

The strategy involves converting some lessee dealer sites to company-operated or commission agent sites, though asset sales are also happening to rationalize the real estate portfolio, as seen by the sale of 60 properties in Q2 2025 and 29 properties in Q3 2025 for $21.9 million.

Finance: draft 13-week cash view by Friday.

CrossAmerica Partners LP (CAPL) - Canvas Business Model: Customer Segments

You're looking at the core of CrossAmerica Partners LP's operations, which is almost entirely business-to-business (B2B), focusing on supplying fuel and real estate to other operators. The end-consumer is reached indirectly through these partners.

The customer base for CrossAmerica Partners LP is distinctly segmented by the nature of the partnership and the operational model, which is heavily influenced by their real estate ownership and fuel distribution agreements. The company's strategy involves optimizing its trade class, which means actively converting sites between wholesale and retail segments, directly impacting the composition of these customer groups.

The primary customer groups are:

• Independent motor fuel dealers and jobbers.
• Lessee dealers renting sites from CrossAmerica Partners LP.
• End-consumers purchasing fuel and convenience merchandise.
• Institutional investors seeking MLP distributions ($0.5250 per unit quarterly).

The largest customer segment, estimated to contribute around 68% of gross profit, consists of independent convenience store owners who lease property from CrossAmerica Partners LP. These are typically small business owners, often aged 35-60, managing between 1-10 locations, who rely on CrossAmerica Partners LP for real estate security and competitive fuel pricing.

The distribution network serves a significant number of sites. As of the third quarter of 2025, the wholesale segment had 1,004 distribution sites, while the retail segment ended Q2 2025 with 597 sites. Overall, CrossAmerica Partners LP distributes fuel to approximately 1,600 to 1,800 locations across 34 states.

Here is a breakdown of the key customer segments and associated financial or operational data as of late 2025:

The relationship with dealers is dynamic. For instance, during the three months ended September 30, 2025, CrossAmerica Partners LP sold 29 properties for $21.9 million in proceeds, while maintaining a supply relationship post-sale with substantially all of those divested locations.

The retail segment's performance reflects consumer behavior within the dealer network. For the second quarter of 2025, retail fuel gallons distributed totaled 141.7 million gallons.

The focus on optimization means the site count is fluid; for example, the retail segment saw operating expenses increase 5% in Q2 2025, partly driven by a 5% increase in the average segment site count due to conversions of lessee dealer sites to company-operated sites.

Finance: draft 13-week cash view by Friday.

CrossAmerica Partners LP (CAPL) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive CrossAmerica Partners LP's operations as of late 2025. For a wholesale fuel distributor and convenience store operator, the biggest chunk of cash outflow is definitely tied to what they sell.

Cost of motor fuel and merchandise sold represents the largest variable cost component, though the exact dollar amount isn't directly reported as a standalone line item in the same way as operating expenses. What we can see is the resulting gross profit. For the third quarter of 2025, the Retail Segment generated a gross profit of $80.0 million. Within that, merchandise gross profit specifically reached $32 million. The Wholesale Segment contributed an additional gross profit of $24.8 million for the same period. This structure shows that while fuel costs dominate the input side, merchandise sales are a significant driver of the margin realized after those costs are covered.

Fixed and semi-fixed costs are also critical to track. Total operating expenses across both segments for the third quarter of 2025 were reported at $57.5 million. This figure reflects management's focus on efficient expense control, especially following site count optimization efforts. General and Administrative (G&A) expenses specifically saw a decrease of 11% year-over-year for the quarter, largely due to lower legal fees and equity compensation expense.

Debt servicing is another major cost category, but CrossAmerica Partners LP has seen some relief here due to strategic balance sheet management. Interest expense for Q3 2025 was reduced to $11.8 million. That's down from $14.1 million in Q3 2024, a material benefit driven by a lower average interest rate and a lower average outstanding debt balance on their capital credit facility, thanks to asset sale proceeds.

Finally, you have to account for keeping the physical assets in shape. Sustaining capital expenditures, which cover necessary site maintenance and upgrades to keep operations running smoothly, were $1.9 million in the third quarter of 2025. This was a key factor contributing to the slight increase in distributable cash flow for the quarter, as it was lower than the prior year period.

Here's a quick look at the key reported expense metrics for the third quarter of 2025:

The overall cost picture shows a deliberate shift toward lower fixed costs, particularly interest expense, even as they manage the variable costs associated with fuel and merchandise sales. You'll want to watch how the cost of motor fuel tracks against their ability to maintain or grow merchandise gross profit dollars moving into Q4.

• The partnership's leverage ratio stood at 3.56 times as of September 30, 2025.
• The quarterly distribution declared for Q3 2025 was $0.5250 per limited partner unit.
• Distributable cash flow for Q3 2025 was $27.8 million.
• The distribution coverage ratio for the trailing 12 months ended September 30, 2025, was 1.00x.

CrossAmerica Partners LP (CAPL) - Canvas Business Model: Revenue Streams

You're looking at the core ways CrossAmerica Partners LP brings in money, focusing on the hard numbers from their latest reports as of late 2025. Honestly, it's a mix of fuel distribution, convenience store operations, and real estate plays.

The primary operational revenue drivers are clearly segmented between wholesale fuel distribution and the retail side of the business. For the third quarter ended September 30, 2025, the gross profit figures show where the immediate action is:

Drilling down into those segment numbers, the Wholesale segment gross profit for the third quarter of 2025 was $24.8 million, which was a 10% decrease from the third quarter of 2024. That segment's motor fuel gross profit specifically declined 7% to $15.7 million in Q3 2025.

The Retail segment gross profit for the third quarter of 2025 came in at $80.0 million, down 4% from Q3 2024, primarily due to lower retail fuel margins. Still, the merchandise gross profit within that segment actually increased 5% to $32 million for the quarter.

Rental income from leased properties is another component woven into the wholesale results. Rental income declined in the Wholesale segment gross profit for Q3 2025, partly due to site divestitures completed that year.

A significant, though less recurring, revenue stream comes from capital recycling through asset sales. CrossAmerica Partners LP continued its real estate rationalization effort, which is a key part of their strategy to enhance the portfolio quality. For the nine months ended September 30, 2025, the partnership recorded a net gain from asset sales and lease terminations totaling $42.5 million. To be fair, this is a one-time boost, but it's substantial; for just the third quarter of 2025, the net gain from these activities was $7.4 million.

Here's a quick look at the asset sale activity driving that gain for the quarter:

• Properties sold in Q3 2025: 29.
• Proceeds from Q3 2025 sales: $21.9 million.
• Net gain recognized in Q3 2025: $7.4 million.

Finance: draft the Q4 2025 projected revenue breakdown by Friday.