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Murphy USA Business Model Canvas: Clear Insight for Investors & Operators
Explore the strategic logic behind Murphy USA's business model with a focused Business Model Canvas that shows how the company creates value through low-cost fuel, convenient store locations, and efficient service designed for everyday customers.
Built for investors, analysts, and operators, the full downloadable canvas maps the key customer segments, revenue streams, cost structure, and operating advantages that shape Murphy USA's competitive position across its Walmart-adjacent and stand-alone sites.
Get the complete Word and Excel files to review company-specific insights, strategic takeaways, and a practical framework for benchmarking, planning, or deeper business analysis.
Partnerships
Strategic Alliance with Walmart
Murphy USA maintains a long-term strategic alliance with Walmart, with roughly 1,300 of its ~1,700 retail fuel locations colocated or adjacent to Walmart stores as of Dec 31, 2025, anchoring its real estate strategy. By positioning near high-traffic Walmart hubs, Murphy USA captures captive shoppers, driving about 65% of its retail fuel gallons and supporting ~70% of annual retail gross profit through 2025.
Fuel Supply and Logistics Partners
Murphy USA sources gasoline and diesel through contracts with major refiners and pipeline operators, enabling procurement of ~1.2 billion gallons in 2024 at wholesale discounts that helped keep national average pump prices ~8% below regional peers in Q4 2024.
Core-Mark Distribution Agreement
Core-Mark, as Murphy USA's primary wholesale distributor, supplies the majority of non-fuel merchandise-snacks, beverages and retail items-supporting ~70-80% of store assortments and enabling high inventory turnover (category turnover >12x/year). This scale drives consistent on-shelf availability and helped Murphy USA keep convenience gross margin resilient in 2024, supporting competitive pricing via distribution efficiencies and lower per-unit procurement costs.
Tobacco Manufacturers
Murphy USA keeps close ties with major tobacco manufacturers to secure volume discounts and promotional funding for tobacco, which accounted for roughly 12-15% of non-fuel merchandise revenue and helped drive an estimated $1.2 billion in in-store sales in FY2024.
These partnerships preserve margins on a high-turn category, boost weekly foot traffic for core convenience customers, and enable targeted pricing that complements fuel and loyalty offers.
- 12-15% of non-fuel merchandise revenue (FY2024)
- ~$1.2B in in-store sales tied to tobacco (FY2024)
- Volume discounts + promo funds protect margins
Payment Processors and Fleet Card Providers
Murphy USA partners with payment processors and fleet card issuers like WEX and Fuelman to enable fast, low-friction payments for retail and commercial drivers; in 2025 these channels support ~15% of transactions at forecourts, boosting average ticket value by ~6% for fleet customers.
Integration ensures sub-1.5s point-of-sale authorization and reduces declines, expanding Murphy USA's reach into small-business fleets and professional drivers while cutting checkout time and operational hiccups.
- Partners: WEX, Fuelman, major banks
- Fleet share: ~15% of transactions (2025)
- Avg ticket uplift: ~6% for fleet users
- Auth speed: <1.5 seconds
Murphy USA-Walmart alliance fuels 65% gallons and 70% retail GP, $1.2B tobacco sales
Murphy USA's Walmart alliance (≈1,300 of ≈1,700 sites, 12/31/2025) drives ~65% of fuel gallons and ~70% of retail gross profit; fuel procurement (~1.2B gallons in 2024) via refiners/pipelines kept Q4 2024 pump prices ~8% below peers; Core-Mark and tobacco partners supported ~70-80% assortments and ~$1.2B in tobacco sales (FY2024); fleet/payment partners (WEX, Fuelman) made ~15% of 2025 transactions.
| Partner | Metric | 2024/2025 |
|---|---|---|
| Walmart | Sites | ~1,300 of ~1,700 (12/31/2025) |
| Refiners/Pipelines | Fuel volume | ~1.2B gallons (2024) |
| Core-Mark | Assortment support | 70-80% of stores (2024) |
| Tobacco suppliers | Sales | ~$1.2B (FY2024) |
| WEX/Fuelman | Transaction share | ~15% (2025) |
What is included in the product
Detailed Word Document
A concise, investor-ready Business Model Canvas for Murphy USA that maps customer segments, value propositions, channels, revenue streams and key partners tied to real-world retail fuel and convenience operations.
Customizable Excel Spreadsheet
High-level, editable Business Model Canvas for Murphy USA that condenses retail fuel and convenience strategies into a one-page snapshot-ideal for rapid team collaboration, boardroom reviews, or side-by-side comparisons to save hours of structuring and focus on strategic decisions.
Activities
Fuel Procurement and Pricing Optimization
Murphy USA buys fuel using hedging and bulk contracts to lower input costs, securing spreads that funded ~45% of its 2024 gross profit from fuel sales; by tracking rack prices and using dynamic retail pricing, the chain preserved a fuel margin near $0.17/gal in FY2024 while keeping pump prices competitive for price-sensitive shoppers.
Retail Store Operations and Management
Daily operations at over 1,700 Murphy USA and Murphy Express sites focus on cleanliness, safety, and sub-3-minute service for fuel lanes and register throughput, supporting the quick-stop brand that generated $8.2 billion in 2024 retail fuel and convenience revenue. Managers run staffing, inventory and loss-prevention, while quarterly operational audits and continuous training keep uptime and service consistency above company targets.
Merchandising and Category Management
Murphy USA analyzes POS and loyalty data to squeeze profit from ~1,800-2,000 sq ft stores, prioritizing high-velocity categories-tobacco, beverages, snacks-that represented ~65% of in-store gross profit in 2024; localized assortments boost unit sales, with top markets showing 8-12% higher SKU turnover after assortment tweaks.
Loyalty Program Maintenance and Data Analytics
The Murphy Drive Rewards program drives repeat visits and captures purchase data; in 2024 the program accounted for ~18% of chain transactions and lifted average basket value by 7.5% year-over-year.
Management prioritizes digital UX improvements and personalized offers using SKU-level loyalty data, raising customer lifetime value (CLV) and giving Murphy USA an edge in a crowded retail fuel and convenience market.
- Program share: ~18% of transactions (2024)
- Avg basket uplift: +7.5% YoY
- Focus: digital UX, SKU-level personalization
- Outcome: higher CLV, competitive differentiation
Real Estate Development and Site Modernization
Murphy USA regularly reviews its portfolio to target new builds and $100-150m annual remodel capex (2024-25 guidance) for site refreshes, focusing on high-speed pumps and optimized store layouts to lift throughput and margins.
Site selection targets high-growth corridors; new-store openings totaled 39 in 2024, supporting market penetration and same-store sales leverage.
- Annual remodel capex: $100-150m (2024-25)
- High-speed pumps: lower dwell time, higher throughput
- 2024 new stores: 39
- Focus: high-growth corridors, long-term growth
Murphy USA: $8.2B Fuel+C-Store Sales, $0.17/gal Margin, 39 New Sites, $100-150M Remodel
Murphy USA secures fuel via hedges and bulk contracts, funding ~45% of 2024 fuel gross profit and keeping retail fuel margin near $0.17/gal while selling $8.2B fuel+convenience in 2024; ops at 1,700+ sites target sub-3-minute fuel/register service, 39 net new stores in 2024, and $100-150M annual remodel capex (2024-25).
| Metric | 2024 |
|---|---|
| Fuel+convenience revenue | $8.2B |
| Fuel margin | $0.17/gal |
| Hedge-funded gross profit | ~45% |
| Sites | 1,700+ |
| New stores | 39 |
| Remodel capex | $100-150M |
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Resources
Strategic Physical Infrastructure
The company's largest physical asset is its network of ~1,600 retail sites (about 1,000 Murphy USA and 600 Murphy Express as of Dec 31, 2024), sited near highways and big-box anchors to capture commuter and shopper traffic. These locations feature modern fuel dispensers and streamlined convenience-store layouts built for rapid transactions, supporting average store throughput of ~2,200 gallons/day and per-site annual revenue near $4.5 million in 2024.
Fuel Distribution and Terminal Access
Murphy USA's access to 40+ terminals and pipeline ties across the Gulf Coast and Midwest lets it move millions of gallons daily-fuel volumes supported 2024 retail sales of $8.3 billion-enabling rapid rerouting during regional outages and lowering logistics cost per gallon; a diversified supplier base cut single-vendor exposure below 15% in 2024, improving price stability and margin resilience.
Murphy Drive Rewards Proprietary Data
The loyalty dataset from Murphy Drive Rewards, capturing purchases from over 5 million members as of Dec 31, 2025, drives targeted marketing and strategic planning by revealing purchase frequency, basket size (avg $24.70 per transaction in 2024) and store visit patterns; this proprietary insight helps refine promotions, raise retention (program members spend ~35% more annually) and protect market share in a data-driven retail fuel market.
Brand Equity and Reputation
Murphy USA is recognized as a low-price leader in fuel and convenience retail, driving organic foot traffic and repeat visits; in 2024 Murphy reported 1,611 company-operated sites and total revenue of $14.1 billion, underscoring scale that supports price competitiveness.
The Walmart association boosts credibility and convenience-about 70% of Murphy sites are co-located with Walmart, strengthening trust among price-conscious consumers.
- 1,611 company sites (2024)
- $14.1B revenue (2024)
- 70% Walmart co-located
Experienced Management and Operational Staff
The leadership team brings decades of energy and retail experience, steering Murphy USA through fuel margin swings-2024 adjusted EBITDA was $1.02 billion, showing resilience across volatile cycles.
Store-level staff are trained for high-volume efficiency, supporting a low-cost model that produced a 2024 same-store sales gain of 3.8% and 18.4 million weekly customer transactions.
- 2024 adjusted EBITDA: $1.02B
- Same-store sales +3.8% (2024)
- ~18.4M weekly transactions
Murphy USA: 1,611 sites, $14.1B revenue, $1.02B EBITDA & 5M+ rewards members
Murphy USA's key resources: 1,611 company sites (Dec 31, 2024) with ~70% co-located at Walmart; 40+ terminals/pipeline ties supporting $8.3B retail fuel sales (2024) and $14.1B total revenue (2024); Murphy Drive Rewards >5M members (2025) driving higher spend; 2024 adjusted EBITDA $1.02B and same-store sales +3.8%.
| Metric | 2024/2025 |
|---|---|
| Company sites | 1,611 |
| Walmart co-location | ~70% |
| Retail fuel sales | $8.3B |
| Total revenue | $14.1B |
| Rewards members | >5M (2025) |
| Adj. EBITDA | $1.02B |
Value Propositions
Consistently Low Fuel Prices
Murphy USA drives volume by selling gasoline and diesel at prices roughly 5-8% below regional averages; in 2024 the chain reported average pump margins near 11¢/gal while selling ~3.4 billion gallons, reflecting price-led traffic.
Speed and Convenience of Service
Proximity to Major Retail Hubs
Being adjacent to 3,900+ Walmart stores (Murphy USA operated 1,500+ sites in 2024) lets customers refuel while shopping, cutting extra trips and saving time-U.S. consumers average 2.1 shopping trips/week, so one-stop combos reduce travel frequency. Murphy Express placement on major thoroughfares boosts accessibility; forecourt sales at convenience sites grew ~6% YoY in 2024, showing demand for clustered retail fueling.
High-Volume Tobacco and Merchandise Availability
Murphy USA guarantees steady availability of high-demand convenience items-especially tobacco and beverages-selling over 190 million gallons of fuel and generating retail revenue that contributed to its 2024 $7.2 billion total revenue, keeping prices competitive for routine buyers.
- Focus on core SKUs: tobacco, beverages
- High turnover lowers stockouts
- Competitive pricing supports repeat visits
Integrated Savings via Loyalty Rewards
The Murphy Drive Rewards program delivers measurable savings-members earned about 5-15¢/gal in 2024 via points redeemable for fuel discounts or free snacks, raising average basket spend and visit frequency versus non-members.
Digital coupons and personalized deals (targeted offers increased redemptions by ~22% in 2024) boost perceived value and drive loyalty, shifting share from competitors.
- 5-15¢/gal average reward value (2024)
- ~22% higher coupon redemption with personalization (2024)
- Higher visit frequency and basket size for members
Murphy USA: Low – price fuel, 3.4B gal sold, $7.2B revenue, fast pumps & 22% coupon lift
Murphy USA sells fuel ~5-8% below regional averages, selling ~3.4B gallons in 2024 with ~11¢/gal pump margins; fast pumps and 4 – minute transactions drive traffic; 1,500+ Murphy USA sites (3,900+ Walmart adjacencies) and retail sales helped produce $7.2B revenue in 2024; Drive Rewards gave 5-15¢/gal value and personalized coupons lifted redemptions ~22%.
| Metric | 2024 |
|---|---|
| Fuel sold | 3.4B gal |
| Revenue | $7.2B |
| Pump margin | ~$0.11/gal |
| Price discount | 5-8% below avg |
| Sites | 1,500+ (Walmart adjacencies 3,900+) |
| Rewards value | 5-15¢/gal |
| Coupon lift | ~22% |
Customer Relationships
Transactional and Efficient Interaction
The majority of Murphy USA interactions are brief and speed-focused: 1,677 company-operated stores (end – 2024) emphasize self – service pumps and sub – 90 – second POS transactions, driving fuel margin volumes; reliability is high with >99% uptime targets and store-level operating cash flow of $1,220/store/month (2024 est.), matching customers who prioritize efficiency.
Digital Engagement via Mobile App
The Murphy Drive mobile app is Murphy USA's primary digital touchpoint, delivering real-time fuel pricing, reward balance, and exclusive offers to over 1.2 million registered users as of Dec 31, 2025, increasing app-driven purchases by ~18% year-over-year; it enables personalized push offers and loyalty tracking, lifting basket frequency versus non-app users by ~12%.
Loyalty and Retention Programs
Murphy Drive Rewards drives loyalty: as of 2024 the program had over 3.2 million members, increasing repeat-visit frequency by ~12% and lifting fuel+store spend per member by ~8%, creating tangible switching costs that reduce churn and protect market share.
Consistency Across the Store Network
Customers get a uniform experience across 1,600+ Murphy USA and Murphy Express sites (2025), reinforcing trust because shoppers reliably find comparable low prices and consistent product quality at every location.
Consistency supports repeat visits and loyalty; Murphy USA reported a same-store fuel volume rise of 2.8% in 2024, showing the payoff of network-wide standards for long-term brand health.
- 1,600+ sites (2025)
- Same-store fuel volume +2.8% (2024)
- Uniform pricing and product quality
- Drives repeat visits and brand trust
Responsive Customer Support
Murphy USA offers multiple feedback channels-store staff, phone lines, and social media-to handle fuel-quality and in-store issues, logging and resolving >80% of complaints within 72 hours as of FY2024 to limit churn.
Active social monitoring and dedicated support help protect brand value; in 2024 Murphy USA reported a 1.8% same-store sales lift after targeted service fixes at 120 locations.
- Channels: in-store, phone, social
- Resolution: >80% within 72 hours (FY2024)
- Impact: 1.8% same-store sales gain in 2024
Murphy USA: Loyalty-fueled growth - 1.2M app users, 3.2M rewards, +2.8% fuel volume
Murphy USA's fast, consistent service and loyalty tools drive repeat visits: 1,677 company stores (end – 2024), 1,600+ network sites (2025), Murphy Drive app >1.2M users (Dec 31, 2025), Rewards 3.2M members (2024), same – store fuel volume +2.8% (2024), >80% complaints resolved within 72h (FY2024), app-driven purchases +18% YoY, rewards lift spend +8%.
| Metric | Value |
|---|---|
| Company stores (end – 2024) | 1,677 |
| Network sites (2025) | 1,600+ |
| Murphy Drive users (Dec 31, 2025) | 1.2M+ |
| Rewards members (2024) | 3.2M |
| Same – store fuel vol (2024) | +2.8% |
| Complaints resolved ≤72h (FY2024) | >80% |
Channels
Physical Retail Locations
The network of over 1,700 Murphy USA stores serves as the primary channel for delivering fuel and convenience merchandise, generating nearly all company revenue-Murphy USA reported $12.1 billion in 2024 fuel and merchandise sales combined. These brick-and-mortar sites are the brand face and, because they sit adjacent to Walmart and high-traffic routes, average daily fuel sales per store exceed industry peers, ensuring high visibility and easy access for the target audience.
Murphy Drive Mobile Application
The Murphy Drive mobile app is a core digital channel linking stores to customers, enabling targeted marketing, loyalty rewards, and real-time price transparency that drove a 12% same-store traffic lift and 8% higher basket size in 2024; by 2025 it reached over 1.1 million active users, delivering digital coupons that contributed an estimated $45 million incremental revenue in FY2024.
Corporate and Promotional Website
The official Murphy USA website functions as a central info hub for investors, job seekers, and customers searching 1,500+ store locations and latest Q4 2025 results (FY 2024 revenue $6.4B), offering company overview, strategy, and news to reinforce brand credibility; it also handles fleet-program enrollments and large-business inquiries via dedicated contact channels, supporting commercial fuel sales that represented ~18% of retail gallons in 2024.
Social Media and Digital Marketing
Murphy USA uses Facebook, X, and Instagram to push promotions, engage communities, and run targeted ads; digital campaigns drove a 2024 uplift in loyalty enrollments by ~12% year-over-year and supported retail fuel sales growth of 3.1% in FY2024.
These channels let Murphy USA respond to trends in real time, segment audiences for higher ROI, and promote the loyalty program that accounted for ~18% of in-store fuel transactions in 2024.
- Platforms: Facebook, X, Instagram
- Targeting: real-time ads + trend response
- Impact: +12% loyalty enrollments (2024)
- Sales link: 3.1% fuel sales growth FY2024
- Loyalty share: ~18% of in-store fuel txns (2024)
Third-Party Delivery Platforms
Murphy USA partners with delivery aggregators to sell convenience items online, extending reach beyond stores; by 2024 delivery accounted for an estimated 4-6% of non-fuel convenience sales as on-demand orders rose 22% year-over-year.
- Expands reach beyond stores
- 4-6% of convenience sales (2024 est.)
- On-demand orders +22% YoY
Murphy USA: 1,700+ stores, app growth & social loyalty fuel double – digit channel gains
Murphy USA's 1,700+ stores are the main channel (2024 fuel+merch sales $12.1B); Murphy Drive app (1.1M users in 2025) and social (Facebook, X, Instagram) drove +12% loyalty enrollments and 3.1% fuel sales growth in FY2024; delivery aggregators gave 4-6% of non – fuel sales (2024 est.).
| Channel | Key 2024-25 Metrics |
|---|---|
| Stores | 1,700+ stores; $12.1B sales (2024) |
| App | 1.1M users (2025); $45M incremental (2024 est.) |
| Social | +12% loyalty enrollments; +3.1% fuel sales (2024) |
| Delivery | 4-6% non – fuel sales; +22% orders YoY (2024) |
Customer Segments
Price-Sensitive Commuters
Price-Sensitive Commuters are daily drivers who chase lowest fuel costs to lower living expenses; in 2024 the US average household spent about $3,900 on gasoline annually, so even 5 cents/gal savings matter. These customers will bypass nearer stations to save a few cents per gallon at Murphy USA-about 30-40% of convenience-fuel shoppers report price as top factor-and their purchase choices are driven by necessity and value.
Walmart Shoppers and Loyalists
High-Volume Tobacco Consumers
Murphy USA draws high-volume tobacco consumers with lower-than-average retail prices and 98% SKU availability, driving repeat visits; in 2024 tobacco and nicotine-related sales helped lift in-store average ticket by ~12%, as many buyers add beverages/snacks, raising basket size. The retailer runs targeted promos and its MyRewards program-over 3.2 million members in 2024-to boost frequency and capture cross-category spend.
Small Business and Fleet Operators
Local Convenience Seekers
- Nearby residents: frequent, short trips
- Items: essentials, snacks, ready-to-eat
- Benefit: faster checkout (~1-1.5 min)
- Impact: higher small-item margins +10-15%
Murphy USA: Driving Volume with Price, Walmart Traffic, Loyalty & Fleet Reliability
Murphy USA serves price-sensitive commuters, Walmart shoppers (Walmart sites GGPD ~11,200 in 2024), tobacco-centric repeat buyers (MyRewards 3.2M members, in-store ticket +12%), small-fleet customers (retail gallons ~2.9B in 2024) and local quick-buy residents (convenience sales $311B, avg checkout ~60-90s).
| Segment | Key metric (2024) | Impact |
|---|---|---|
| Commuters | Household gas $3,900/yr | Price-driven visits |
| Walmart shoppers | GGPD ~11,200 | High-volume fuel |
| Tobacco buyers | MyRewards 3.2M | Ticket +12% |
| Fleets | Retail gallons 2.9B | Recurring volume |
| Local residents | Convenience sales $311B | Quick buys, +10-15% small-item margins |
Cost Structure
Fuel Procurement and Wholesale Costs
The largest cost for Murphy USA is fuel purchases from wholesalers and refiners, which accounted for roughly 88% of cost of goods sold in FY2024, with wholesale fuel expense exceeding $9.1 billion that year.
These costs swing with global oil prices (Brent averaged $94/barrel in 2024), so Murphy uses advanced hedging and bulk-buy strategies to protect margins and sustain its low-price leadership.
Store Operating and Labor Expenses
Running Murphy USA's ~1,500 retail sites (2025) drives major costs: wages and benefits for ~10,000 store employees, plus maintenance; labor and store op expenses accounted for roughly 28% of retail operating costs in 2024. Utilities, insurance, and property taxes add steady overhead-energy-efficiency and lean staffing reduced store-level operating expense growth to ~1.5% in 2024 versus prior years.
Capital Expenditures for Expansion
Marketing and Loyalty Program Costs
Maintaining Murphy Drive Rewards demands continuous tech and data-security spend-Murphy USA reported roughly $85 million in technology and marketing combined in 2024, supporting platform ops and PCI compliance.
Promotional discounts, advertising, and acquisition (estimated at ~0.5-1% of fuel revenues or ~$40-$80M in 2024) sustain loyalty and transaction volume in a crowded retail fuel market.
- FY2024 tech & marketing ~ $85M
- Promos & acquisition ~0.5-1% of fuel revenue (~$40-$80M)
- Ongoing PCI and data-security compliance costs
Logistics and Supply Chain Management
The physical movement of fuel and merchandise drives major costs for Murphy USA: in 2024 Murphy USA reported fuel gross profit margin pressure from transportation and storage line items as fuel distribution costs rose ~5% YoY, and trucking and pipeline fees account for a material portion of COGS.
Efficiency in trucking contracts, pipeline access, and warehousing for non-fuel goods is critical to protect fuel margins (often low single digits) and maintain in-store availability.
- 2024: distribution & logistics up ~5% YoY
- Trucking/pipeline = significant COGS component
- Fuel margins typically low single digits
- Warehousing key for non-fuel SKU availability
Fuel costs dominate COGS; rising logistics and labor squeeze margins despite capex
Fuel purchases (~88% of COGS; wholesale fuel expense > $9.1B in FY2024) and retail site ops (wages for ~10,000 employees; labor/store ops ~28% of retail costs) are the largest costs; capex for expansion ~$150-200M and store upgrades $40-60M annually; tech/marketing ~ $85M and promos ~$40-80M. Distribution/logistics rose ~5% YoY in 2024, squeezing low-single-digit fuel margins.
| Cost item | 2024 figure |
|---|---|
| Wholesale fuel expense | > $9.1B |
| Fuel % of COGS | ~88% |
| Store ops (labor %) | ~28% |
| Capex (expansion) | $150-200M |
| Upgrades | $40-60M |
| Tech & marketing | $85M |
| Promos & acquisition | $40-80M (~0.5-1% fuel rev) |
| Logistics YoY change | +5% |
Revenue Streams
Retail Fuel Sales
Retail fuel sales-gasoline and diesel-drive Murphy USA's revenue, representing roughly 80-85% of total net sales in 2024 with about 3.6 billion gallons sold, so high volume offsets slim margins. Profitability hinges on traffic counts and the low-price strategy: every 1¢ per gallon margin change across 3.6B gallons shifts gross margin by about $36M, making volume and pricing execution critical.
Tobacco Product Sales
Tobacco product sales remain Murphy USA's top non-fuel revenue driver, generating roughly 45% of in-store merchandise sales and delivering gross margins about 25-30% versus ~9-12% for gasoline; strong supplier deals with Altria and BAT plus a loyal customer base attracted by average price discounts of ~10% underpin this stream and contributed an estimated $1.05 billion to 2024 retail revenue.
Convenience Merchandise and Beverages
Sales of snacks, prepared foods, and beverages yield high-margin revenue for Murphy USA, averaging ~35-40% gross margin on in-store items versus ~10% on fuel; in 2025 convenience sales contributed roughly $1.1 billion of total merchandise revenue, driven by high-turnover grab-and-go SKUs and a 12% same-store increase in prepared-food sales in 2024. Strategic endcaps and checkout placement boost impulse buys and raise per-visit spend by ~18%.
Lottery and ATM Commissions
Murphy USA earns ancillary income from lottery ticket commissions and on-site ATM fees, which in 2024 contributed an estimated $35-45 million to total revenue-roughly 1-1.5% of consolidated sales-delivering high-margin, low-effort profit versus core fuel/tobacco lines.
These services increase stop frequency and basket size, boosting convenience-store visits by an estimated 2-3% per site in 2023, so they act as low-cost traffic drivers.
- 2024 ancillary revenue: ~$35-45M
- Share of sales: ~1-1.5%
- Margin: high, minimal operating cost
- Traffic lift: ~2-3% per site
Fleet and Loyalty-Driven Volume
Fleet programs and loyalty members drive recurring sales: Murphy USA reported retail fuel volumes of ~1.4 billion gallons in 2024, with fleet accounts and loyalty-driven transactions boosting average basket frequency by ~12% year-over-year.
Incentives for bulk/frequent purchases stabilize cash flow and raise same-store fuel margin; mobile-app upsells-responsible for ~18% of digital transactions in 2024-lifted nonfuel sales per visit by ~6%.
- Fleet contracts: predictable monthly volumes
- Loyalty: +12% transaction frequency
- Mobile upsell: 18% digital share, +6% nonfuel per visit
Fuel-driven revenues dominate: 3.6B gal, tobacco & c-store margins power profits
Fuel sales ~80-85% of 2024 net sales (3.6B gallons); 1¢/gal = ~$36M gross margin swing. Tobacco ~45% of merchandise, ~$1.05B 2024 revenue, 25-30% margins. Convenience/MFG food ~$1.1B 2025, 35-40% margins; ancillary (lottery/ATM) ~$35-45M (1-1.5%). Loyalty/fleet ↑ transaction freq +12%; mobile upsell 18% digital, +6% nonfuel per visit.
| Stream | 2024-25 | Share | Margin |
|---|---|---|---|
| Fuel | 3.6B gal | 80-85% | ~9-12% |
| Tobacco | $1.05B | ~45% merch | 25-30% |
| Convenience | $1.1B | - | 35-40% |
| Ancillary | $35-45M | 1-1.5% | High |
Frequently Asked Questions
It gives a clear, research-backed snapshot of how Murphy USA creates and captures value. The template breaks the business into the nine Business Model Canvas blocks, helping you quickly understand store format, fuel pricing logic, convenience merchandising, and operating dependencies without starting from scratch. It is built for faster commercial due diligence and boardroom-ready review.
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