Murphy USA Inc. (MUSA): ANSOFF MATRIX [Dec-2025 Updated]

As a seasoned analyst who's seen a few market cycles, I know you need a clear growth plan for Murphy USA Inc. (MUSA) that cuts through the noise, especially after their Q2 2025 results showed resilience with an EPS of $7.36 but also a 3.2% drop in same-store sales volumes. Honestly, relying on the core model isn't enough; we need concrete action. This Ansoff Matrix lays out exactly where Murphy USA Inc. can push for growth in the 2025 fiscal year-from defending market share with a $0.02 to $0.05 fuel discount to launching a premium coffee program across all 1,700+ sites, giving you a roadmap from the safest moves to the more aggressive diversification bets you need to evaluate right now.

Murphy USA Inc. (MUSA) - Ansoff Matrix: Market Penetration

You are looking at the current performance metrics that underpin the Market Penetration strategy for Murphy USA Inc. (MUSA).

• - Increase fuel volume per store by offering a $0.02 to $0.05 per gallon discount to loyalty members.
• - Drive higher merchandise basket size through targeted in-app promotions for high-margin items like dispensed beverages.
• - Optimize pricing strategies to capture market share from competitors within a 1-mile radius of existing stores.
• - Extend operating hours at high-traffic locations to capture late-night and early-morning customer segments.

The 2025 guidance for fuel volume per store, a key metric for this strategy, sits between 235 to 237 K gallons APSM for the full year, based on the updated guidance from the third quarter of 2025. Still, same store sales (SSS) fuel volumes saw a decline of 3.2% in the second quarter of 2025 compared to the prior year, and a 4.2% decline in the first quarter of 2025. This highlights the need to drive volume through loyalty incentives.

Merchandise contribution dollars show sequential growth, moving from $195.9 million in the first quarter of 2025 to $241.2 million in the third quarter of 2025. Unit margins also improved, moving from an average of 19.6% in Q1 2025 to 21.5% in Q3 2025. For context, the full year 2024 merchandise contribution was $833.7 million at an average unit margin of 19.8%. A pilot program at QuickChek showed that uptake of suggested sell items more than doubled, which directly relates to driving a higher basket size.

Store operating expenses (OPEX) excluding payment fees and rent on an APSM basis were forecasted to be at or below the low end of $36,500 to $37,000 per store month for the full year 2025. This focus on cost control supports the margin capture from optimized pricing strategies. As of December 31, 2024, Murphy USA Inc. operated a total of 1,757 Murphy USA/Express and QuickChek stores.

Here's a quick look at the recent quarterly financial performance metrics:

The company is executing on its physical footprint growth, with 2025 guidance targeting up to 50 new stores and up to 30 raze-and-rebuilds. New loyalty members visiting in 2023 were making about five transactions per month, and 28% of them bought fuel, tobacco, and non-tobacco each month.

Murphy USA Inc. (MUSA) - Ansoff Matrix: Market Development

Murphy USA Inc. operates across 27 states as of the end of 2024. The Market Development strategy centers on expanding this footprint into adjacent or new territories, utilizing the company's established supply chain. The capital spending guidance for 2025 is set between $450 million to $500 million, supporting this growth trajectory.

The focus on new store openings is a primary driver for Market Development. Murphy USA Inc. targets opening up to 50 new stores in 2025. This acceleration is part of a larger, multi-year plan to open 500 newly built c-stores by 2033. As of September 30, 2025, the total store count reached 1,620 Murphy USA/Express stores and 152 QuickChek stores.

Moving beyond the traditional Walmart-adjacent model involves deploying larger, more productive store formats. The new-to-industry (NTI) stores are reportedly double the size of the traditional 1,400-square-foot kiosk sites, with plans for highly productive 2,800 square foot stores. The performance of these new formats is strong; in Q1 2025, new locations showed nearly 40% better merchandise margins and 20% more fuel gallons sold compared to older stores.

Acquiring smaller chains offers immediate market access. An example of this opportunistic approach in Q3 2025 was the purchase of four stores in the Denver area. This small-scale M&A activity is intended to supplement organic growth in attractive markets where Murphy USA Inc. seeks a bigger presence.

Targeting commercial fleet accounts in new regions is supported by the overall merchandise growth. Merchandise contribution dollars for Q3 2025 increased 11.3% to $241.2 million. The company's Q2 2025 merchandise contribution dollars were $218.7 million.

Here's a snapshot of recent store development and financial metrics:

The company is committed to growing its footprint, with 40 additional NTI stores under construction as of the second quarter of 2025.

Murphy USA Inc. (MUSA) - Ansoff Matrix: Product Development

You're looking at how Murphy USA Inc. (MUSA) plans to grow by introducing new offerings into its existing market-that's the Product Development quadrant of the Ansoff Matrix. This strategy relies on enhancing the in-store experience to drive non-fuel gross profit, which is the key profit driver for the business.

The core of this product development push involves upgrading the convenience offering across the entire network. Murphy USA Inc. is focused on rolling out a proprietary, premium coffee and fresh food program across all 1,700+ locations. This is a massive undertaking, considering the company operated 1,772 stores as of the third quarter of 2025 across 27 states.

The focus on merchandise margin is clear from recent performance. For instance, in the third quarter of 2025, the average unit margins for merchandise hit 21.5%, up from 20.0% in the second quarter of 2025. This reflects the success of efforts to improve product mix and pricing power in stores, with merchandise contribution dollars increasing 11.3% year-over-year in Q3 2025 to $241.2 million.

To capture future traffic, Murphy USA Inc. is also testing new technology infrastructure. This includes introducing electric vehicle (EV) charging stations. The company has already engaged in a pilot, opening two Level 3 'quick chargers' in Indiana to better understand this emerging market segment and the feasibility of scaling the equipment.

The Product Development strategy also encompasses integrating digital enhancements to improve the customer journey and speed up throughput. Murphy USA Inc. is working to integrate advanced self-checkout and mobile ordering systems. While specific 2025 adoption rates aren't public, this move supports the overall goal of delivering exceptional value and maintaining customer traffic, especially as the company projects a low- to mid-single-digit percent increase in merchandise sales over the next two years.

Here's a snapshot of the operational and financial context supporting these product initiatives:

The push for proprietary food and beverage offerings is directly aimed at boosting non-fuel gross profit, which is critical when retail fuel margins are under pressure, such as the 28.3 cents per gallon realized in Q3 2025, down from 32.6 cpg in Q3 2024.

The company is also expanding private-label merchandise offerings, particularly in snacks and beverages, to improve margin percentage. The focus on margin is evident in the Q3 2025 results, where total merchandise margin contribution dollars grew 11.3%. This growth was driven by both higher sales volumes and improved margins, with nicotine contribution dollars up 20.3% and non-nicotine up 2.8% in the quarter.

The integration of new store formats also plays a role here; new locations are double the size of traditional 1,400-square-foot sites and have shown nearly 40% better merchandise margins in Q1 2025.

Murphy USA Inc. (MUSA) - Ansoff Matrix: Diversification

Murphy USA Inc. (MUSA) has a full-year 2024 revenue of $20.24 Billion USD. The trailing twelve months revenue ending September 30, 2025, was $19.351B.

For the strategy of establishing a small-format, non-fuel-based convenience store concept focusing on high-margin merchandise, the current merchandise performance provides a baseline:

Murphy USA Inc. ended 2024 with a network of 1,757 stores, which included 4 QuickChek locations. The company has a stated goal of putting up to 50 highly productive 2,800 square foot stores into service in 2025.

Regarding investment in a logistics or last-mile delivery service, the existing physical scale is substantial, with total retail gallons sold in the full year 2024 reaching 4.821 Billion gallons. The total merchandise sales for the full year 2024 were $4.215 Billion.

For acquiring a regional quick-service restaurant (QSR) chain, the integration of the QuickChek brand is a relevant data point. Murphy USA Inc. added 4 QuickChek locations in 2024. The company also executed the roll out of the new and improved QuickChek rewards program in late 2024.

To support a financial services offering, the success of existing customer programs is noted. The company pointed to the 'unequivocal success of Murphy Drive Rewards' as influencing the QuickChek rewards program design. For shareholders, the quarterly cash dividend paid in June 2025 was $0.50 per share, equating to an annualized rate of $2.00 per share as of Q2 2025.

The following table summarizes key financial metrics relevant to the scale of potential diversification:

The company reported net income of $145.6 Million for the second quarter of 2025.