12 Best Grocery Store Stocks to Buy Now

8. Arko Corp. (NASDAQ:ARKO)

Number of Hedge Fund Holders: 21

Arko Corp. (NASDAQ:ARKO) is an independent convenience store operator that functions in four segments: Retail, Wholesale, Fleet Fueling, and GPMP. The company operates its stores under a brand portfolio of more than 25 regional brands, including Admiral, Apple Market, Flash Market, Dixie Mart, 1-Stop, Handy Mart, Jetz, Jiffi Stop, and more.

It reported a merchandise margin rate of 32.8% for fiscal Q3 2024, compared to 31.7% for the prior year period. Arko Corp. (NASDAQ:ARKO) is focusing on operational excellence, strengthening store-level performance, and improving customer offerings. Management is confident in its position to manage near-term macroeconomic challenges and its long-term potential for sustained growth through improvements in its operations and investments in its stores.

As part of its developing transformation plan and channel optimization strategy, Arko Corp. (NASDAQ:ARKO) converted 51 retail stores to dealer sites in fiscal Q3 2024 and expects to convert another ~100 stores by the end of fiscal Q4 2024. Together with the initial 51 stores, this conversion is anticipated to amount to a cumulative annualized benefit to the combined wholesale and retail segments. The company ranks eighth on our list.