Yesway outlined its growth strategy at the H.C. Wainwright 28th Annual Global Investment Conference on Monday, September 14, 2026. The convenience-store operator, listed as MDAI, has a market capitalization of $51.82 million and trailing-twelve-month revenue of $15.39 million through the second quarter of 2026, a 44% year-over-year decline according to InvestingPro data. Its shares were at $1.61 at publication, with an InvestingPro fair value of $2.35 and analyst price targets ranging from $4 to $6.25. The company was not profitable over the past 12 months, and analysts do not expect profitability this year. Management said it is operating well below its 3.0x public-company leverage target, with organic builds required to clear a 15% unlevered hurdle rate and build-to-suit projects expected to generate 30% levered returns.
Yesway operates 450 stores across nine states and is the 15th largest convenience-store operator in the United States. Future growth is concentrated in Texas, New Mexico, Arizona and Oklahoma, while the company is selling stores in Iowa and Kansas because of disadvantages tied to E15 tax credits. About 65% of its real estate is owned rather than leased, and its new-to-industry portfolio has built about $1 billion of new stores. Same-store fuel volumes rose 1.4% in the second quarter, with positive volume continuing into July. Diesel accounts for about 38% of total fuel sales, and new store builds feature a diesel mix greater than 40%.
The company reached its current scale through 27 M&A transactions, beginning with a 10-store portfolio in Iowa in 2015 and including the 305-store Allsup's portfolio acquisition in November 2019. It has built 92 new stores over the past four years. Its acquisition team is targeting single- and two-store owners, particularly second-generation owners looking to exit, and prefers single-digit acquisition multiples.
Food service is a central part of the model. The Allsup's burrito sells for $4.99, and management said it does not plan a proactive price increase, noting that comparable items from competitors range from $6 to $7. Yesway sells about 24 million Allsup's burritos a year, while its broader proprietary frozen-fried food service platform sells about 41 million items annually. Food service operations use about 300 square feet, and stores can operate with 2.6 employees per shift, or in some cases a single employee for an entire shift including food service. The company is testing a smaller 3,900-square-foot format compared with typical 5,600- to 6,300-square-foot units.
Private label accounts for about 9% of inside sales, excluding cigarettes and similar categories, and pro-driver loyalty customers spend about three times more inside the store than base-tier customers. Yesway expects to open 130 new stores over the next five years, with 6 to 8 openings in 2026. Management expects mid-to-high-single-digit EBITDA growth over the same period.
