Valvoline Plans to Open 160 - 185 New Stores in FY25, Targets 250 New Stores Annually By 2027

2 min read | December 09, 2024 01:47 AM PST | By Team Kalkine Media

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Valvoline Plans to Open 160 - 185 New Stores in FY25, Targets 250 New Stores Annually By 2027 — Image source: shutterstock

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Highlights

Strong Sales Growth: Valvoline reports a 12% increase in system-wide store sales, reaching $3.1 billion, and a 17% rise in adjusted EBITDA to $443 million.

Expansion Plans: The company plans to open 160 to 185 new stores in fiscal year 2025, part of its strategy for sustainable growth.

Franchise Growth and Fleet Business: Valvoline targets 250 new stores annually by 2027, while the Fleet segment has seen a 14% compound annual growth rate.

Valvoline (NYSE:VVV) has demonstrated strong financial results, with a 12% increase in system-wide store sales, reaching $3.1 billion, and a 17% rise in adjusted EBITDA to $443 million. The company’s adjusted EBITDA margin also improved by 100 basis points to 27.3%, reflecting effective cost management. Lori Flees, President and CEO, emphasized the importance of the company’s well-recognized brand, which continues to foster customer loyalty and drive growth.

Looking ahead, Valvoline is focused on expansion, planning to open 160 to 185 new stores in fiscal year 2025. This initiative is part of its long-term strategy to achieve sustainable growth. Flees expressed confidence that this expansion will help strengthen the company’s market position.

Additionally, Valvoline is accelerating its franchise growth, with a target of adding 250 new stores annually by 2027. This will be supported by refranchising transactions and new partnerships. The company’s Fleet business segment also continues to show strong performance, with a 14% compound annual growth rate over the past three years, positioning it as a key driver of business-to-business sales growth.

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