The Pantry Inc. has reported a wider-than-expected first-quarter loss, due to below-average fuel and grocery margins, Reuters reported.
For the first quarter ended Dec. 24, the company posted a net loss of $26.1 million, or $1.17 a share, compared with a profit of $38.5 million, or $1.73 a share, last year. Excluding 90 cents a share in non-cash impairment charges, the company posted a loss of 27 cents a share. Total revenue rose 6% to $1.74 billion. Retail fuel revenue increased 6.2%, partly reflecting a 3.7% increase in the average retail price per gallon, but total fuel gross profit fell 56% to $57.3 million. The Pantry also reported a retail fuel margin of 11 cents a gallon.
Analysts on average were expecting the company to lose 22 cents a share on revenue of $1.7 billion, according to Thomson Reuters I/B/E/S.
The Pantry Inc. has more than 1,650 locations in eleven states. Over the last few years, the company has converted more than 80% of its stores to its Kangaroo Express brand.