Yesway, Inc. Fuel Margins Heating Up and Faster Unit Growth Could Soon Follow; Initiating at Neutral

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Yesway, Inc. Fuel Margins Heating Up and Faster Unit Growth Could Soon Follow; Initiating at Neutral

J P M O R G A N North America Equity Research

18 May 2026

Initiation

Yesway, Inc. Neutral

YSWY, YSWY US

Fuel Margins Heating Up and Faster Unit Growth Could Price (15 May 26):$25.84

Soon Follow; Initiating at Neutral Price Target (Dec-26):$29.00

We are initiating coverage of Yesway (YSWY) with a Neutral rating and $29 Food Producers & Retailers

ACDecember 2026 price target (12% implied upside). The company has grown Thomas Palmer, CFA

earnings through same-store sales growth and inside margin expansion. Tactically, (1-212) 622-5582

the company’s retail fuel margins are benefiting from a more volatile fuel price thomas.palmer@jpmorgan.com

environment. We also look for earnings growth to benefit from accelerated unit Elsa H Evans

growth and a shift toward larger, more profitable stores. Our Neutral rating is more (1-212) 622-4922

reflective of the company’s valuation than concerns about underlying elsa.evans@jpmchase.com

J.P. Morgan Securities LLC

fundamentals. On P/E and EV/EBITDA, YSWY trades at premiums to

convenience store peers MUSA and ATD and also best-in-class CASY’s historic

average, even though YSWY carries elevated debt levels relative to these others Quarterly Forecasts (FYE Dec)

and adds back items (such as stock comp) in adjusted EPS and EBITDA. Adj. EBITDA ($ mn)

2025A 2026E 2027E

• Burritos and beverages. Yesway owns and operates a chain of 448 Q1 28 56 41

convenience stores under the Allsup's and Yesway banners. Most locations are Q2 53 52 55

Q3 55 54 61

in the southern US, especially Texas and New Mexico. Stores are known for Q4 52 48 56

their deep-fried burritos. YSWY has a growing private label offering and FY 187 209 212

rewards program.