From “Handshake Deal” to Stock Shake-Up at 7-11
Growing up in the Midwest, I had a few indulgences as a child. Whether it was cooling off with ice cream at the Dairy Queen or enjoying a meal at the local Coney Island restaurant, one treat always stood out – a visit to my neighborhood QuikTrip for a refreshing drink after a baseball game.
QuikTrip has been a staple in the convenience store market, dominating my hometown and other areas across the Midwest. The experience of filling up a large cup with crushed ice and my favorite soda or slushie has always been a simple pleasure that I treasure.
But there’s an intriguing urban legend surrounding QuikTrip and its major competitor that would never happen in today’s business world.
The story goes back to the 1950s, when Burt Holmes and Chester Cadieux founded QuikTrip after being inspired by the success of 7-Eleven stores in Dallas. This led to a gentleman’s agreement between Cadieux and Bill Brown, the founder of 7-Eleven, to stay out of each other’s territories in Oklahoma and Kansas.
Fast forward to 2024, and QuikTrip has finally made its way into Oklahoma City, marking a new chapter in its growth. However, its main rival, 7-Eleven, is now facing a potential acquisition by Canadian-based Alimentation Couche-Tard Inc., the owner of Circle K.
The news of the acquisition offer has sent Seven & I Holdings shares soaring, highlighting the changing landscape of the convenience store industry. With mergers, acquisitions, and expansions taking center stage, it’s clear that the industry is evolving rapidly.
As more convenience store chains make strategic moves to expand their reach, the future looks bright for this sector. With over 2,100 new stores opening in the U.S. in just a year, the potential for growth is immense.
In conclusion, the convenience store industry is in the midst of a transformation, with players like QuikTrip, 7-Eleven, and Circle K making strategic moves to stay ahead of the curve. As the market continues to evolve, it will be interesting to see how these developments shape the future of the industry.
Stay tuned for more updates on this exciting journey.
Safe trading,
Matt Clark, CMSA®
Chief Research Analyst, Money & Markets
