Murphy USA Inc. (MUSA): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect the operational engine of Murphy USA Inc. (MUSA) as of late 2025, and honestly, their model is a textbook example of winning on volume and location. We're talking about a network of 1,772 retail sites, mostly parked right next to Walmart Supercenters, all focused on delivering Everyday Low Price fuel savings-think loyalty discounts up to $1 off per gallon-while aggressively investing, with a planned capital expenditure between $450M and $500M for the year. This isn't just about selling gas; it's a finely tuned machine balancing high COGS (cost of goods sold) with massive transaction flow and growing merchandise sales, which netted them about $328.7 million in net income over the first nine months. Dive below to see exactly how the nine blocks fit together to generate that kind of cash flow.

Murphy USA Inc. (MUSA) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Murphy USA Inc. running lean and well-stocked. These aren't just casual vendor links; they are structural agreements that define how Murphy USA Inc. gets its real estate and its product.

The foundation of the physical footprint relies heavily on the strategic co-location agreement with Walmart for high-traffic sites. While Murphy USA Inc. is an independent entity, its business model is intrinsically linked to the high customer flow generated by these anchor retailers. As of late 2024, Murphy USA Inc. operated approximately 1,244 stores across the United States, with a clear concentration in these high-traffic areas.

For the merchandise side, the primary merchandise distribution via Core-Mark (Performance Food Group) is a massive commitment. Core-Mark supplies over 75% of the merchandise sold at Murphy USA Inc. stores. This scale helps drive operational efficiency in the convenience store segment.

Financially, the company secured significant liquidity through its banking relationships. The financial partners for the $750 million revolving credit facility, which was upsized and refinanced in April 2025, include JPMorgan Chase Bank, N.A. acting as the administrative agent for the Revolving Facility. As of September 30, 2025, borrowings under this facility totaled $245.0 million.

To maintain its low-cost fuel advantage, Murphy USA Inc. relies on multiple fuel suppliers to ensure competitive, low-cost wholesale pricing. This procurement strategy directly impacts the fuel contribution margin, which for retail fuel in Q3 2025 was reported at 28.3 cpg (cents per gallon).

Here's a quick look at the scale of the financial commitments and operational metrics related to these key partners as of the latest reported data in 2025:

The relationship with Walmart is contractual, based on leases for the high-traffic sites. The Core-Mark agreement is a five-year supply contract.

• The revolving credit facility matures in April 2030.
• The Term Facility, also part of the Credit Facilities, is $600 million.
• The company repurchased approximately 569.4 thousand common shares for $221.4 million in Q3 2025.
• The annualized dividend as of late 2025 is $2.52 per share.

Murphy USA Inc. (MUSA) - Canvas Business Model: Key Activities

You're looking at the core engine driving Murphy USA Inc.'s performance right now, focusing on the actions they execute daily to keep the model running, especially as they push aggressive growth targets through late 2025.

High-volume retail motor fuel sales and price optimization

The primary activity centers on moving massive volumes of motor fuel while skillfully managing margins in a low-volatility environment. This requires constant price optimization against local competition. For the third quarter of 2025, the total fuel contribution landed at 30.7 cents per gallon (cpg). This compares to 32.6 cpg in the third quarter of 2024. Retail fuel margins specifically in Q3 2025 were 28.3 cpg, marking a 11.3% decrease versus the prior-year quarter. Despite this margin compression, total retail gallons actually increased 1.2% in Q3 2025 compared to Q3 2024, though same-store sales (SSS) volumes declined 2.6%. To be fair, the second quarter of 2025 showed a bit more margin strength, with all-in fuel margins at 32 cents per gallon, which was an improvement of 30 basis points versus Q2 2024.

Here's a quick look at the fuel margin performance across the first three quarters of 2025:

New-to-industry (NTI) store development, targeting 40 new stores in 2025

Murphy USA Inc. is actively executing its long-term plan to open 500 newly built c-stores by 2033, a goal launched in 2023. The specific guidance for 2025 centers on opening 40 new-to-industry (NTI) convenience stores, which would be eight more than the 32 opened in 2024. They also planned for up to 30 raze-and-rebuilds in 2025. As of the end of 2024, the total network stood at 1,757 Murphy USA/Express and QuickChek stores.

The performance of these new formats is a key driver. New locations opened during Q1 2025 outperformed older stores significantly:

• Nearly 40% better merchandise margins.
• 20% more fuel gallons sold.

The company had already opened 14 new stores in the first half of 2025 and had 40 additional NTIs under construction as of the Q2 2025 call. The capital spending guidance for 2025 was set between $450 million to $500 million to support this growth.

Managing the Murphy Drive Rewards and QuickChek Rewards loyalty programs

Managing these digital relationships is crucial for driving incremental merchandise sales. In a March 2025 ranking of convenience store loyalty programs, QuickChek QC Rewards scored 9.3, while Murphy Drive Rewards scored 8.8. For gas station programs in the same ranking, Murphy Drive Rewards scored 9.4.

The digital engagement is showing results:

• The revamped QuickChek loyalty program saw mobile orders double since its relaunch.
• Digital initiatives drove an 11% increase in merchandise transactions at Murphy USA branded stores in Q2 2025.

The Murphy Drive Rewards program allows members to earn points for free snacks and up to $1 off per gallon at the pump for up to 20 gallons.

Operational efficiency via the Store Productivity Excellence campaign

This activity focuses on controlling costs while integrating new, larger-format stores. For the second half of 2025, store operating expenses (OPEX) were forecasted to be at or below the low end of the guided range of $36,500 to $37,000 per store month. However, total store and other operating expenses were higher year-over-year in recent quarters due to new store operating costs. For instance, in Q3 2025, these expenses were $9.8 million higher versus Q3 2024. On an APSM (average per store month) basis, OPEX excluding payment fees and rent was 3.0% higher in Q3 2025 versus Q3 2024. Still, management noted improvements in areas like overtime, labor rates, loss prevention, and maintenance contributing to cost control.

Merchandising and food service expansion, especially through QuickChek

Expanding non-fuel sales, particularly food service, is a major focus, especially leveraging the QuickChek brand. QuickChek food and beverage sales have been positive for the third consecutive quarter as of the second quarter of 2025. Merchandise contribution dollars for Q3 2025 increased 11.3% to $241.2 million, with average unit margins reaching 21.5%. This compares to Q2 2025 merchandise contribution dollars of $218.7 million on margins of 20.0%. For the full year 2024, merchandise contribution dollars grew 3.8% to $833.7 million.

The growth in merchandise is broad-based:

• Total nicotine contribution dollars increased 20.3% in Q3 2025 compared to Q3 2024.
• Non-nicotine contribution dollars increased 2.8% in Q3 2025 compared to Q3 2024.

Finance: draft 13-week cash view by Friday.

Murphy USA Inc. (MUSA) - Canvas Business Model: Key Resources

You're looking at the core assets that power Murphy USA Inc.'s operations as of late 2025. These aren't just line items on a balance sheet; they are the physical and digital foundations that allow the company to move massive volumes of fuel and merchandise.

The physical footprint is substantial, built on a strategy of high-volume, low-cost locations. This network is the engine for their fuel contribution dollars, which totaled $354.5 million in the third quarter of 2025 alone. The real estate itself, particularly the sites adjacent to Walmart Supercenters, provides built-in, high-traffic customer flow, though the company is also growing its standalone Murphy Express sites.

The scale of the operation requires a significant workforce. Here's a quick look at the core quantifiable resources as reported around Q3 2025:

The proprietary digital loyalty platform, Murphy Drive Rewards, is a critical intangible asset for understanding customer behavior. While the most recent hard number found is from the program's launch phase, it shows the initial capability to capture data from millions of users. For instance, data from loyal customers in 2023 showed they were spending 50% more per month than their 2019 counterparts, about $177 per month. This platform helps drive sales across categories, with new loyalty members in 2023 making about five transactions per month.

The real estate portfolio is characterized by its strategic placement. You see this in the geographic distribution, which is heavily concentrated in the Southeast. For example, as of late 2024/early 2025 planning, the top states for locations included:

• Florida: 142 locations
• Texas: 119 locations
• Georgia: 99 locations
• Tennessee: 93 locations
• North Carolina: 91 locations

The company is actively investing in upgrading this physical base. They completed 32 new-to-industry (NTI) stores and 47 raze-and-rebuilds in 2024, with plans to put up to 50 highly productive stores into service in 2025. These rebuilds transform older kiosk stores into larger 1,400-square-foot stores, which naturally house more merchandise and support higher basket sizes. Finance: draft 13-week cash view by Friday.

Murphy USA Inc. (MUSA) - Canvas Business Model: Value Propositions

Everyday Low Price (EDLP) on fuel and core merchandise is central to the Murphy USA Inc. value proposition. The company remains an industry leader in competitive pricing, leveraging scale and expense management to keep operating costs low. For the third quarter of 2025, average unit margins on merchandise were 21.5%. Retail fuel margins in the second quarter of 2025 were 29.2 cpg (cents per gallon). S&P Global Ratings projects realized cents per gallon for the full year 2025 to be about $0.29. Merchandise contribution dollars for the third quarter of 2025 increased 11.3% to $241.2 million compared to the prior-year quarter.

Extreme convenience is delivered due to strategic location, with the majority of Murphy USA Inc. stores situated in close proximity to Walmart Supercenters. As of June 30, 2025, the company operated 1,766 total stores. This network spans 27 states. The company is poised to deliver 50 new stores over the next 12-month period following Q2 2025.

Loyalty program savings are driven through programs like Murphy Drive Rewards, which saw its customer base generate nearly 50 million loyalty customer transactions in the first quarter of 2025. Digital initiatives specifically drove a 31% increase in new loyalty enrollments during the second quarter of 2025.

Expanded, fresh food and beverage offerings are delivered via the QuickChek brand. As of June 30, 2025, there were 154 QuickChek locations. QuickChek food and beverage sales have been positive for the third straight quarter as of the second quarter of 2025. In the first quarter of 2025, sandwich unit growth at QuickChek was up 8%, and total food and beverage sales increased nearly 1%.

Here's a look at key operational metrics supporting the value proposition as of mid-2025:

The focus on value is also reflected in cost management efforts:

• Selling, general, and administrative expenses saw an 8% reduction in the first nine months of 2025.
• Store operating expenses per site are forecasted to be at or below the low end of the guided range of $36,500 to $37,000 per store month for the second half of 2025.

The QuickChek segment is showing specific transaction improvements:

• Mobile orders at QuickChek have doubled since the loyalty program relaunch.
• 35% of in-store pickup items at QuickChek included additional sales inside the store, averaging $7 per transaction in Q2 2025.

Finance: draft 13-week cash view by Friday.

Murphy USA Inc. (MUSA) - Canvas Business Model: Customer Relationships

The relationship with the Murphy USA Inc. customer is fundamentally built on high-volume, low-friction transactions, heavily supported by a value proposition centered on fuel savings and essential convenience items.

Automated, transactional relationship for fuel and quick merchandise stops

The core interaction is rapid and self-directed, designed for customers prioritizing speed for their non-discretionary fuel purchases. This transactional nature is evident in the quarterly performance metrics where merchandise sales, though growing, remain secondary to the fuel stop.

• Total retail gallons decreased by 1.9% in Q1 2025 and by 0.2% in Q2 2025 compared to the prior year periods.
• Same Store Sales (SSS) fuel volumes declined by 4.2% in Q1 2025 and by 3.2% in Q2 2025.
• Despite traffic softness, the company is executing on growth, planning to deliver 50 new stores over the 12 months following the Q2 2025 report.

Digital engagement and personalized offers through loyalty programs

The Murphy Drive Rewards program serves as the primary digital touchpoint, designed to drive repeat visits and increase basket size through targeted incentives. The perceived quality of this digital relationship is quantified by external industry assessments.

The financial commitment to the customer base is also reflected in the regular return of capital via dividends, which saw an increase to $0.63 per share for the December 1, 2025 payment, representing an annualized rate of $2.52 per share.

Value-driven retail strategy focused on non-discretionary needs

Customer retention is strongly tied to the perception of value, which is pursued through both fuel pricing and the profitability of the merchandise mix. The merchandise segment shows strong growth in contribution dollars, indicating successful upselling or higher-margin product mix shifts, even when fuel traffic is soft.

The Q3 2025 results highlight this focus, with total merchandise contribution dollars increasing by 11.3% year-over-year, driven by a 20.3% increase in nicotine contribution dollars.

Self-service model for speed and low-cost operations

The entire operational structure supports a low-cost, high-throughput model, which directly translates into the value proposition offered to the customer. The self-service nature minimizes labor cost per transaction, which is a key component of maintaining competitive pricing.

• Total fuel contribution for Q2 2025 was 32.0 cpg (cents per gallon).
• Total fuel contribution for Q3 2025 was 30.7 cpg.
• The company reported that customers value affordability above all else.

The continued decline in SSS fuel volumes across the first three quarters of 2025-from -4.2% in Q1 to -2.6% in Q3-shows the model relies on capturing the necessary volume through location convenience rather than relying on increasing per-store traffic.

Murphy USA Inc. (MUSA) - Canvas Business Model: Channels

The Channels block for Murphy USA Inc. centers on a high-volume, low-cost physical footprint complemented by growing digital engagement tools to drive transactions and loyalty.

Physical retail locations: Murphy USA, Murphy Express, and QuickChek stores

The physical network is the core delivery mechanism, strategically placed for convenience, often near Walmart Supercenters, but also including standalone and QuickChek formats. The total network size is expanding through new construction and strategic rebuilds.

As of January 1, 2025, the total network comprised 1,757 retail stores across 27 states, encompassing the Murphy USA, Murphy Express, and QuickChek brands.

Murphy USA is executing a multi-format channel strategy:

• Murphy USA stations are typically smaller, kiosk-format stores near Walmart facilities.
• Murphy Express stores are larger, standalone gas stations and convenience stores.
• QuickChek stores, acquired in 2021, operate as distinct convenience store formats.

The company is actively upgrading its physical channel presence through its capital investment program:

Newer, larger NTI locations show superior performance; for instance, in Q1 2025, these new sites delivered nearly 40% better merchandise margins and 20% more fuel gallons sold compared to older stores.

Digital channels via the Murphy Drive Rewards mobile app

The Murphy Drive Rewards (MDR) mobile app is a key digital channel for direct customer communication, promotion delivery, and transaction capture. The success of MDR influenced the late 2024 relaunch of the QuickChek rewards program.

Performance indicators for the digital channel as of mid-2025 include:

• MDR received a score of 8.8 in a March 2025 ranking of convenience-store loyalty programs.
• MDR received a score of 9.4 in a March 2025 ranking of gas station loyalty programs.
• Digital initiatives drove an 11% increase in merchandise transactions at Murphy USA branded stores in Q2 2025.
• The revamped QuickChek loyalty program resulted in mobile orders doubling since its launch.

The MDR app allows members to earn points redeemable for free snacks or up to $1 off per gallon at the pump for up to 20 gallons.

Point-of-sale (POS) systems for fuel and in-store transactions

The POS systems are being modernized to handle increased transaction complexity, especially with the rollout of new store designs. The company is testing advanced features in its prototype locations.

The "Store of Tomorrow" prototype, opened in North Myrtle Beach, South Carolina, features new elements designed to influence future channel investments, including self-checkout capabilities.

The POS infrastructure supports the MDR program, enabling members to receive immediate discounts, such as on tobacco products, or to redeem points at the pump.

Online presence for store locator and investor relations

The company maintains a public-facing online presence for both customer utility and financial transparency. Customers use the app's store finder, while investors rely on the dedicated IR portal.

The Investor Relations section, where earnings materials and SEC filings are posted, is accessible at https://ir.corporate.murphyusa.com.

The company serves an estimated 2.0 million+ customers each day across its network.

Murphy USA Inc. (MUSA) - Canvas Business Model: Customer Segments

Value-conscious motorists and commuters seeking the lowest fuel price

The core customer base is driven by the pursuit of affordability in fuel, a segment that remains durable even when overall traffic softens. For instance, in Q1 2025, total retail gallons decreased by 1.9% on a year-over-year basis. Despite this, the company's ability to maintain competitive pricing, supported by fuel contribution margins of 25.4 cents per gallon (cpg) in Q1 2025, attracts this segment. The business model is designed to allow for lower prices because of higher structural margins, enabling Murphy USA Inc. to grow share when other retailers widen price differentials.

Middle to high-income customers (>$55k) increasingly seeking value

Affordability is valued across the board, but the composition of the loyalty base is shifting toward higher earners. The hard data from nearly 50 million loyalty customer transactions in Q1 2025 indicates a pressured yet durable customer base that continues to seek value. This trend is clearly visible in the income demographics of the loyalty membership.

This shift means more and more customer segments are becoming value seeking, though purchase behavior remains static across income cohorts, meaning lower-income earners are still relying on Murphy USA Inc. for their non-discretionary needs.

Local shoppers utilizing the convenience of Walmart-adjacent locations

The physical footprint is a key driver for local shoppers. Murphy USA Inc. operates one of the nation's largest convenience-store chains, with a total of 1,766 c-stores (1,612 Murphy USA/Express and 154 QuickChek) as of June 30, 2025. The majority of these locations are situated next to Walmart Supercenters, leveraging the high foot traffic from these major retail anchors. The company has a strong presence in the Southeast, with 142 locations in Florida and 119 in Texas. The newer, modernized stores are significantly larger, often 2,800 square feet, compared to the traditional 1,400 square foot sites, allowing for expanded merchandise offerings.

Loyalty members driving higher fill rates and in-store spend

The Murphy Drive Rewards program is central to driving frequency and basket size. Digital initiatives fueled a 31% increase in new loyalty enrollments during Q2 2025. Loyal customers, while potentially visiting a little less often as their fill rate increases, spend more per trip in terms of gallons and in the store.

• Merchandise contribution dollars for Q1 2025 reached $195.9 million.
• Loyalty program usage was noted in over 60% of the company's merchandise transactions (as of 2023 data).
• New loyalty members in 2023 were making about five transactions per month.
• Loyal customers were spending about $177 per month in 2023.
• Total merchandise contribution dollars for the full year 2024 reached $833.7 million.

Murphy USA Inc. (MUSA) - Canvas Business Model: Cost Structure

The cost structure for Murphy USA Inc. is heavily weighted toward the variable costs associated with its core business of fuel and merchandise sales, supplemented by significant ongoing capital investment and fixed operating overhead.

The high variable cost of goods sold (COGS) is inherent to the fuel business, where the cost of the product is the largest expense. This is reflected in the fuel contribution margin. For the three months ended September 30, 2025, the total fuel contribution was 30.7 cpg (cents per gallon). Merchandise costs are also variable, with Q3 2025 merchandise contribution dollars reaching $241.2 million on average unit margins of 21.5%.

Significant capital expenditures are planned to support network growth and maintenance. The guidance for capital expenditures for the full year 2025 remains in the range of $450M to $500M.

Store operating expenses show an upward trend, though management is focused on efficiency. Total store and other operating expenses were $9.8 million higher in Q3 2025 versus Q3 2024. For the full year 2025, the projected monthly per store operating expense (OPEX) excluding payment fees and rent has been tightened to $36,200 to $36,600 per store month.

Corporate overhead, specifically Selling, General, and Administrative (SG&A) costs, is being managed below initial expectations. The updated full-year 2025 SG&A guidance is trending below the initial low-end guidance, revised to $230M to $240M for the full year, exclusive of the restructuring charge. To be fair, Q3 2025 Total SG&A costs were $4.7 million lower than Q3 2024.

Servicing the balance sheet involves substantial fixed interest costs. As of September 30, 2025, Murphy USA Inc. reported approximately $2,223.0 million in long-term debt, which includes finance lease obligations. This debt level necessitates consistent debt servicing payments.

Here's a look at the key cost-related metrics from the latest reported quarter and guidance:

The variable cost components are best understood through the contribution margins:

• Retail fuel margins were 28.3 cpg in Q3 2025.
• Total fuel contribution was 30.7 cpg in Q3 2025.
• Merchandise contribution dollars reached $241.2 million in Q3 2025.
• Merchandise unit margins were 21.5% in Q3 2025.

The company is actively managing its operating expenses through various initiatives.

• Management is making strides in reducing loss prevention year over year.
• Labor expense is being held steady to help reduce the overall cost structure.
• Home office efficiencies are driving General and Administrative (G&A) costs lower.

Finance: draft 13-week cash view by Friday.

Murphy USA Inc. (MUSA) - Canvas Business Model: Revenue Streams

You're looking at the core ways Murphy USA Inc. brings in money, which is heavily weighted toward volume and margin capture across fuel and in-store sales as of late 2025. Honestly, the fuel side is about the margin per gallon, not the total sales price.

Motor fuel sales remain the primary driver, though margins have tightened compared to the prior year. The total fuel contribution for Q3 2025 settled at 30.7 cpg (cents per gallon). This is the key metric for the fuel component of revenue generation, representing the total margin earned on the fuel sold.

The merchandise segment shows strong growth, which helps offset some of the pressure on fuel margins. For Q3 2025, the contribution from convenience merchandise sales hit $241.2 million.

Here's a quick look at the key Q3 2025 contribution metrics:

Within the merchandise category, specific product groups are outperforming. Nicotine products are a major component of this success. To give you a sense of the momentum there, the total nicotine contribution dollars increased by 20.3% in Q3 2025 compared to Q3 2024.

The overall financial health, reflecting the sum of these streams before certain adjustments, is visible in the year-to-date net income. Total net income for the first nine months of 2025 was approximately $328.7 million. That figure is below the $360 million reported for the first nine months of 2024.

Other components contributing to the revenue structure, though not always reported as direct revenue line items in the same way, include:

• Fuel card and credit card transaction fees (net of costs)
• Wholesale petroleum product sales

Keep in mind that payment fees retained by credit/debit card providers are recorded as Store and other operating expenses in the Consolidated Statements of Income, so the net revenue from card transactions is embedded within expense lines.