Convenience Store Chains Surge as Investors Seek Safe Havens Amid AI and Middle East Turmoil
Shares of major convenience-store operators have jumped 24% or more this year, driven by investor demand for defensive assets as AI hype wanes and oil-price volatility rises after the U.S. strike on Iran.
Investors are flocking to convenience-store stocks, pushing Alimentation Couche-Tard, Casey’s General Stores and Murphy USA up at least 24% this year, while Casey’s has surged over 54% and recently joined the S&P 500. The rally reflects a shift toward defensive holdings as concerns grow over the durability of the AI boom and the fallout from the U.S. attack on Iran, which has unsettled oil markets. Analysts point to volatile gasoline prices boosting fuel margins and the rise of higher-margin nicotine products as growth drivers.
New market entrants, including the oversubscribed IPO of Yesway and a potential $9 billion listing for Cumberland Farms, are further fueling demand, even as 7-Eleven’s U.S. operation delays its own IPO. Executives such as Dave Mazza and Mindy West stress the importance of cash flow from essential goods, but warn that a return to stable oil prices could test the sector’s profitability.
Why it matters
The surge shows how market volatility can redirect capital toward everyday retail, affecting consumer prices and investor portfolios.
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