Murphy Usa

To provide value-driven fuel and convenience by doubling our non-fuel contribution margin in a decade.

Murphy Usa SWOT Analysis

Updated: October 3, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Murphy Usa was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Murphy USA SWOT Analysis reveals a company at a critical inflection point. Its formidable strengths in loyalty, location, and operational efficiency have built a powerful, cash-generative business. However, these are deeply tied to a legacy model threatened by the EV transition and its internal weakness in higher-margin food and beverage. The key priorities correctly identify the strategic imperative: leverage its massive customer base and real estate to pivot towards a future as a broader convenience destination. Success hinges on executing the foodservice and digital evolution with the same discipline that defined its fuel business. The plan must be to transform its network from fuel stops into essential, rewarding convenience hubs for a new era of mobility, mitigating its existential threats while seizing clear market opportunities.

Casey's General Stores Circle K (Alimentation Couche-Tard) 7-Eleven QuikTrip Wawa

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide value-driven fuel and convenience by doubling our non-fuel contribution margin in a decade.

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Strengths

LOYALTY: Massive 21.6M member Drive Rewards program drives repeat visits.
LOCATION: Unbeatable traffic flow from ~1,100 locations at Walmart sites.
EFFICIENCY: Lean, low-cost operating model enables competitive fuel pricing.
SCALE: Large 1,700+ store network provides significant purchasing power.
SUPPLY: Advantaged fuel sourcing & logistics create a durable cost advantage.

Weaknesses

MERCHANDISE: Underdeveloped, low-margin mix vs. food-focused competitors.
DEPENDENCE: Over-reliance on the Walmart relationship for traffic and growth.
BRAND: Perception as a 'gas station' not a 'convenience destination'.
INNOVATION: Slower adoption of mobile payments, delivery, and new formats.
FOODSERVICE: Lacking a compelling proprietary prepared food and coffee offer.

Opportunities

FOOD: Massive upside in growing prepared food and beverage contribution.
DIGITAL: Enhance app with mobile pay and personalized, high-margin offers.
EV CHARGING: Install fast chargers to capture new EV customer revenue stream.
PRIVATE LABEL: Expand own-brand products to improve merchandise margins.
ACQUISITIONS: Consolidate smaller regional chains to accelerate growth.

Threats

EV TRANSITION: Long-term erosion of core gasoline business is existential.
COMPETITION: Intense pressure from Casey's, Circle K with superior food.
VOLATILITY: Fuel price swings and falling RIN values compress margins.
REGULATION: Increasing restrictions on tobacco products, a key category.
CONSUMER: Price-sensitive customers trading down, hurting inside sales.

Key Priorities

FOODSERVICE: Aggressively launch & scale a proprietary food & beverage line.
LOYALTY: Evolve Drive Rewards into a personalized digital engagement engine.
NETWORK: Initiate an EV charging pilot program at key Walmart locations.
DIVERSIFY: Reduce Walmart dependence by testing new standalone store formats.

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Murphy Usa OKR

Updated: October 3, 2025 • 2025-Q4 Analysis

The Murphy USA OKR plan is a focused and potent blueprint for transformation. It rightly prioritizes evolving beyond fuel by making food service and digital engagement the twin engines of future growth. Objectives like 'BECOME A DESTINATION' and 'DRIVE ENGAGEMENT' are aspirational yet grounded in the SWOT's core conclusions. The key results are specific, measurable, and directly address critical weaknesses while seizing clear opportunities. This plan provides the clarity and alignment needed for the executive team to navigate the industry's disruption, shifting the company's center of gravity from the pump to the customer's digital wallet and daily needs, ensuring long-term relevance and profitability in a changing world.

Casey's General Stores Circle K (Alimentation Couche-Tard) 7-Eleven QuikTrip Wawa

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide value-driven fuel and convenience by doubling our non-fuel contribution margin in a decade.

BECOME A DESTINATION

Transform our stores from fuel stops to convenience hubs.

FOOD: Increase prepared food & beverage contribution to merchandise margin from 15% to 20% across the network.
REMODELS: Complete 150 store remodels with expanded food service capabilities and enhanced branding.
LAUNCH: Successfully pilot a proprietary coffee and breakfast sandwich program in 50 test locations.
NPS: Improve in-store experience NPS score by 5 points, focusing on cleanliness and food quality.

DRIVE ENGAGEMENT

Make our loyalty program an indispensable daily tool.

PERSONALIZATION: Launch an AI-driven offer engine to deliver 100M personalized non-fuel offers to members.
PAYMENT: Increase mobile payment transactions via the app to account for 10% of all transactions.
ACTIVATION: Grow monthly active users (MAUs) of the Murphy Drive Rewards app by 25% year-over-year.
REDEMPTION: Boost non-fuel rewards redemption rate by 15% through more targeted and valuable offers.

FUTURE-PROOF NETWORK

Lead in the transition to next-generation convenience.

EV CHARGING: Secure partnerships and install DC fast chargers at 75 strategic Walmart-adjacent locations.
SITE ANALYSIS: Develop a predictive model to score all 1,700 sites for EV charger investment viability.
UTILIZATION: Achieve an average of 10 charging sessions per day at each newly installed EV station.
PARTNERSHIPS: Establish a formal innovation partnership to explore other alternative fuels like hydrogen.

EXPAND OUR REACH

Build new growth engines beyond our traditional model.

NEW FORMATS: Open 5 new standalone, non-Walmart-hosted stores to test and validate a new growth vector.
ACQUISITION: Identify and perform due diligence on 3 regional c-store chains with strong food service.
DELIVERY: Launch a third-party delivery pilot (e.g., DoorDash) for in-store merchandise in 2 key markets.
B2B: Pilot a commercial fleet fueling program leveraging the Drive Rewards platform for business discounts.

METRICS

Non-Fuel Contribution Margin ($)
Active Loyalty Members
Fuel Gallons Sold (Same-Store)

VALUES

Customer Focus
Integrity
Teamwork
Operational Excellence
Community Engagement

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Murphy Usa Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Murphy USA Q1 2025 Earnings Report & Transcript
Murphy USA 2024 Annual Report (10-K)
Investor Presentations from corporate.murphyusa.com
NACS State of the Industry Reports
Competitor financial reports (Casey's, Alimentation Couche-Tard)

Casey's General Stores Circle K (Alimentation Couche-Tard) 7-Eleven QuikTrip Wawa

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide value-driven fuel and convenience by doubling our non-fuel contribution margin in a decade.

Toggle Theme

What Went Well

FUEL: Total fuel contribution dollars and gallons sold showed strong growth.
LOYALTY: Murphy Drive Rewards program continued its rapid expansion.
COSTS: Maintained disciplined control over store operating expenses.
SHAREHOLDER: Continued aggressive share repurchase program, boosting EPS.
ACQUISITIONS: Successful integration of recent QuickChek acquisition.

Not So Well

MERCHANDISE: Same-store merchandise sales and margins were soft.
TOBACCO: Continued volume declines in the highly profitable tobacco category.
TRAFFIC: Some softness in non-fuel customer traffic was observed.
NET INCOME: Overall net income and EPS declined year-over-year.
RINs: Lower renewable fuel credit values negatively impacted margins.

Learnings

VALUE: The value-conscious consumer is responding well to fuel discounts.
FOOD: Non-tobacco and food/beverage categories are key to margin growth.
LOYALTY: The loyalty program is a powerful tool for driving fuel volume.
MACRO: Inflationary pressures are impacting discretionary in-store spend.
COMPETITION: The promotional environment in convenience is intensifying.

Action Items

PROMOTIONS: Launch targeted loyalty offers on high-margin food items.
OPERATIONS: Continue focus on cost control to protect profitability.
MARKETING: Increase marketing spend to drive awareness of in-store offers.
CAPEX: Accelerate investments in store remodels and food service equipment.
STRATEGY: Finalize and communicate the EV charging pilot strategy.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Murphy Usa Market

AI-Powered Insights

Claude

Gemini

GPT

Murphy USA Q1 2025 Earnings Report & Transcript
Murphy USA 2024 Annual Report (10-K)
Investor Presentations from corporate.murphyusa.com
NACS State of the Industry Reports
Competitor financial reports (Casey's, Alimentation Couche-Tard)

Founded: 2013 (Spun off from Murphy Oil)
Market Share: Approximately 5% of U.S. convenience store market.
Customer Base: Value-conscious consumers, Walmart shoppers, daily commuters.
Category:
Convenience Retail
SIC Code: 5541 Gasoline Service Stations
NAICS Code: 447110
Location: El Dorado, Arkansas
Zip Code: 71730
Congressional District: AR-4 HOT SPRINGS NATIONAL PARK
Employees: 15000

Competitors

Casey's General Stores Request Analysis

Circle K (Alimentation Couche-Tard) Request Analysis

7-Eleven Request Analysis

QuikTrip Request Analysis

Wawa Request Analysis

Products & Services

No products or services data available

Distribution Channels

Murphy Usa Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Murphy USA Q1 2025 Earnings Report & Transcript
Murphy USA 2024 Annual Report (10-K)
Investor Presentations from corporate.murphyusa.com
NACS State of the Industry Reports
Competitor financial reports (Casey's, Alimentation Couche-Tard)

Problem

High and volatile fuel prices for consumers.
Inconvenient locations for quick fuel stops.
Lack of rewards for frequent fuel purchases.

Solution

Consistently low-cost fuel via efficiency.
Prime locations adjacent to Walmart stores.
Murphy Drive Rewards loyalty and app.

Key Metrics

Fuel gallons sold per store per month.
Merchandise contribution margin dollars.
Active Murphy Drive Rewards members.

Unique

Unique real estate partnership with Walmart.
Advantaged, low-cost fuel supply chain.
Massive, engaged loyalty program database.

Advantage

Guaranteed high traffic from Walmart lots.
Scale-driven purchasing power in fuel.
Direct digital relationship with customers.

Channels

~1,700 physical retail store locations.
Murphy Drive Rewards mobile application.
Corporate website and social media.

Customer Segments

Value-conscious Walmart shoppers.
Daily commuters seeking low fuel prices.
Price-sensitive families and individuals.

Costs

Cost of fuel and merchandise sold (COGS).
Store employee salaries and benefits.
Site lease/rental expenses, many to Walmart.

Murphy Usa Product Market Fit Analysis

Updated: October 3, 2025

Murphy USA offers the most convenient and value-driven way for drivers to fuel up and grab essentials. By locating next to Walmart and leveraging a best-in-class supply chain, it provides consistently low fuel prices. The Murphy Drive Rewards program further enhances value, rewarding millions of loyal customers and making every stop more efficient and affordable for the price-sensitive consumer.

Save money on fuel with our consistently low prices and loyalty discounts.

Enjoy the ultimate convenience with locations right next to Walmart.

Get rewarded for every purchase through the Murphy Drive Rewards app.

Before State

Paying high prices for fuel at competitors
Inconvenient stops far from primary shopping
Limited value or rewards for fuel purchases

After State

Saving money on every gallon of fuel bought
Conveniently fueling up while at Walmart
Earning rewards on fuel and store items

Negative Impacts

Overspending on a necessary daily purchase
Wasting time on extra trips for fuel
Feeling unrewarded for brand loyalty

Positive Outcomes

Increased disposable income for customers
More efficient use of time and errands
Tangible savings through loyalty program

Key Metrics

Customer Retention Rates

~65% among loyalty members

Net Promoter Score (NPS)

Estimated 30-35

User Growth Rate

Loyalty members grew 15% YoY to 21.6M

Customer Feedback/Reviews

~200 reviews on G2 (corporate focus)

Repeat Purchase Rates

High frequency, driven by fuel needs

Requirements

Maintain low-cost operational efficiency
Sustain strategic partnership with Walmart
Continuously enhance the loyalty program

Why Murphy Usa

Leverage advantaged fuel supply contracts
Optimize store locations in Walmart lots
Invest in mobile app and data analytics

Murphy Usa Competitive Advantage

Unmatched traffic from Walmart proximity
Superior fuel sourcing and logistics scale
Massive, engaged loyalty member database

Proof Points

Over 21 million Murphy Drive Rewards members
Consistent position as a low-price leader
An estimated 2 million customers served daily

Murphy Usa Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Murphy USA Q1 2025 Earnings Report & Transcript
Murphy USA 2024 Annual Report (10-K)
Investor Presentations from corporate.murphyusa.com
NACS State of the Industry Reports
Competitor financial reports (Casey's, Alimentation Couche-Tard)

Strategic pillars derived from our vision-focused SWOT analysis

Maintain price advantage on fuel and core C-store items.

Evolve Drive Rewards from points to personalization.

Adapt sites for food service and future fuels.

Grow food, beverage, and private label categories.

What You Do

Sell high-volume, low-cost fuel and essential convenience items.

Target Market

Price-sensitive drivers and shoppers seeking quick transactions.

Differentiation

Proximity to Walmart stores drives consistent, high-volume traffic.
Industry-leading fuel pricing and efficient, low-cost operations.

Revenue Streams

Fuel sales (majority of revenue)
In-store merchandise sales (tobacco, beverages, snacks)

Murphy Usa Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Murphy USA Q1 2025 Earnings Report & Transcript
Murphy USA 2024 Annual Report (10-K)
Investor Presentations from corporate.murphyusa.com
NACS State of the Industry Reports
Competitor financial reports (Casey's, Alimentation Couche-Tard)

Company Operations

Organizational Structure: Centralized corporate structure with regional operations management.
Supply Chain: Robust fuel supply chain with owned terminals and strategic sourcing.
Tech Patents: Primarily focused on proprietary loyalty platform technology.
Website: https://www.murphyusa.com

Top Clients

Board Members

Murphy Usa Competitive Forces

Threat of New Entry

MEDIUM: High capital costs for real estate and fuel infrastructure are a barrier, but existing retailers (e.g., grocery) can add fuel pumps relatively easily.

Supplier Power

LOW-MEDIUM: While fuel is a commodity, Murphy's scale, advantaged supply contracts, and some owned terminals give it significant leverage over refiners.

Buyer Power

HIGH: Consumers are highly price-sensitive with low switching costs for fuel. Loyalty programs like Drive Rewards are crucial to mitigate this power.

Threat of Substitution

HIGH: Long-term, the rise of electric vehicles is an existential substitute for gasoline. Short-term, grocery store fuel programs are a key threat.

Competitive Rivalry

VERY HIGH: Intense rivalry from national chains (Circle K, 7-Eleven) and strong regional players (Casey's, QuikTrip) on price and convenience.

Analysis of AI Strategy

Updated: October 3, 2025 • 2025-Q4 Analysis

The Murphy USA AI SWOT Analysis highlights a classic incumbent's dilemma: possessing a vast, proprietary data asset but lacking the specialized talent and modern infrastructure to fully exploit it. The company's 21.6 million loyalty members generate a data goldmine, a definitive strength. The primary opportunity is to weaponize this data for hyper-personalization, shifting customers from low-margin fuel to high-margin snacks and drinks. However, this is threatened by a talent gap and the risk of being outmaneuvered by more agile competitors already leveraging AI. The strategic priorities are clear and correct: start with high-ROI applications like personalization and supply chain optimization, while simultaneously building a foundational data science team. This pragmatic approach will build momentum and prove the value of AI, transforming Murphy USA from a data-rich to a data-driven enterprise.

Casey's General Stores Circle K (Alimentation Couche-Tard) 7-Eleven QuikTrip Wawa

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide value-driven fuel and convenience by doubling our non-fuel contribution margin in a decade.

Strengths

DATA: Massive, proprietary dataset from 21.6M loyalty members' behavior.
SCALE: 1,700+ locations provide a huge testbed for AI-driven operations.
TRAFFIC: Predictable customer flow from Walmart sites simplifies modeling.
TRANSACTIONS: Billions of annual data points on fuel and merchandise.
LOYALTY: A direct, digital channel to deploy AI-powered personalization.

Weaknesses

TALENT: Limited in-house AI/ML engineering and data science expertise.
INFRASTRUCTURE: Legacy tech stack may hinder deployment of modern AI tools.
CULTURE: Decision-making is historically operational, not data-driven.
STRATEGY: Lack of a clear, C-suite-led vision for AI integration.
INVESTMENT: Under-investment in AI R&D compared to tech-forward rivals.

Opportunities

PERSONALIZATION: Drive basket size with 1:1 offers on high-margin items.
PRICING: Implement dynamic fuel and merchandise pricing by site and time.
SUPPLY CHAIN: AI-optimize inventory and logistics to reduce stock-outs.
LABOR: Use AI for intelligent staff scheduling to match traffic patterns.
SITE SELECTION: AI models to predict performance of new store locations.

Threats

COMPETITION: Rivals like Casey's using AI for pizza demand forecasting.
DISRUPTION: Tech companies entering convenience space with AI-first models.
DATA PRIVACY: Increased regulatory risk and consumer backlash on data use.
OBSOLESCENCE: Failure to adopt AI will lead to a permanent cost disadvantage.
SECURITY: AI systems create new vectors for sophisticated cyber attacks.

Key Priorities

PERSONALIZE: Use AI to deliver individualized offers via Drive Rewards app.
OPTIMIZE: Deploy AI to improve fuel and merchandise inventory management.
FORECAST: Build AI models to predict site-level demand for new food items.
HIRE: Establish a core data science team to build internal AI capability.

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Murphy Usa Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Murphy USA Q1 2025 Earnings Report & Transcript
Murphy USA 2024 Annual Report (10-K)
Investor Presentations from corporate.murphyusa.com
NACS State of the Industry Reports
Competitor financial reports (Casey's, Alimentation Couche-Tard)

Profit: $577 Million (TTM)

Market Cap: $9.5 Billion

Stock Performance

Annual Report: Available on the company's investor relations website.

Debt: $1.7 Billion (Long-term debt)

ROI Impact: Share buybacks and dividends are key components of shareholder return.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Murphy USA is a strong Market Leader with an exceptional operational model and loyalty program. However, its Iconic Index is constrained by high dependency on a declining core product (gasoline) and a vision focused on category leadership rather than societal change. The OKRs and Core Strategy are well-formed to address this pivot, but the execution risk is significant. The Growth Multiplier reflects the challenge of transforming its massive asset base against powerful secular headwinds like the EV transition.

SWOT Factors

Upside: 69.3 Risk: 72.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Accelerate food service innovation to capture higher margins.

Leverage AI on loyalty data for personalization at scale.

Execute a disciplined, capital-efficient EV charging strategy.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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