Photo via Fast Company
Yesway Inc., the Fort Worth-based operator of Yesway and Allsup's convenience stores, began trading on the Nasdaq Wednesday under ticker YSWY after pricing shares at $20. The IPO, which raised approximately $280 million through the sale of 14 million shares, values the company at roughly $1.2 billion. Shares climbed more than 10% on the first day of trading, closing above $22, according to Fast Company.
The timing of Yesway's public debut is noteworthy given the broader consolidation sweeping the convenience store sector. Retail observers are watching closely as 7-Eleven's Japan-based parent company, Seven & i Holdings, announced plans to shutter over 600 U.S. locations while postponing its own North American IPO. For regional players like Yesway, the market pullback by the industry giant could create growth opportunities.
Yesway operates 448 locations across nine states, with the strongest presence in West Texas, New Mexico, Oklahoma, and Iowa. The company generated $2.67 billion in revenue last year and reported $54 million in net income, demonstrating the financial viability of regional convenience store networks in less densely populated markets. The company is particularly known for its Allsup's Burritos offering alongside traditional convenience store fare.
The company initially filed for an IPO in 2021 but withdrew in 2022 amid rising interest rates, according to Bloomberg. With market conditions now more favorable for public offerings, Yesway's successful debut suggests investor confidence in niche retail operators with strong regional brands. The company has not yet announced specific expansion plans, but the capital raised provides a war chest for future growth in markets outside its current nine-state footprint.
