Murphy USA tests two-minute White Castle platform for basket growth

Murphy USA Inc. (NYSE: MUSA) is introducing an autonomous hot-food platform from Automated Retail Technologies at selected larger-format stores, using White Castle as the first restaurant brand in a pilot aimed at generating additional inside-store sales without installing a traditional restaurant kitchen. Customers will order through a touchscreen and receive prepared food in about two minutes from a self-contained automated unit, giving Murphy USA a new way to test foodservice economics across a retail estate exceeding 1,800 locations.

The company has not disclosed how many stores will receive the platform during the initial rollout, the capital cost of each unit, revenue-sharing terms with Automated Retail Technologies or White Castle, or the amount of incremental sales required for the programme to meet Murphy USA’s investment hurdles. That makes the announcement a commercial pilot rather than evidence of a chain-wide deployment.

Why does automated foodservice matter to Murphy USA’s merchandise economics?

Murphy USA generated US$1.132 billion of merchandise sales during the second quarter of 2026, up from US$1.092 billion a year earlier, while merchandise contribution increased 4% to US$227.4 million. Average merchandise unit margin was 20.1%, leaving the company with a large non-fuel revenue base where even modest gains in traffic, purchase frequency or average basket size can translate into meaningful contribution dollars across the network.

The White Castle experiment is designed around precisely those variables. Murphy USA has positioned the programme as a way to generate incremental inside sales, store traffic and basket growth, while the compact format reduces the amount of physical infrastructure normally needed to introduce made-to-order food. Automated Retail Technologies’ Just Baked system handles preparation, heating and delivery inside a self-contained unit rather than relying on a conventional kitchen and dedicated foodservice crew.

That distinction could be important for Murphy USA because its estate contains multiple formats, including Murphy USA, Murphy Express and QuickChek locations. A system requiring limited square footage and fewer labour-intensive preparation steps could potentially extend branded hot-food offerings to locations that would not justify a full kitchen, although the company has not yet committed to deploying the technology across those formats.

How large could the opportunity become if the Murphy USA pilot works?

The addressable estate is considerable. Murphy USA operates more than 1,800 stores across 27 states and serves an estimated two million customers each day. Its network scale means a successful concept does not need extraordinary per-store revenue to become financially relevant if it can eventually be replicated across hundreds of locations.

The important word, however, is eventually. Murphy USA has described only an initial rollout at selected larger-format stores, and no chain-wide expansion schedule has been announced. A technology that performs well in high-volume stores may not produce the same economics at smaller fuel-focused locations, while equipment reliability, food quality, replenishment logistics, customer adoption and unit economics will determine whether the platform deserves further capital.

White Castle gives the trial a recognized consumer brand rather than forcing Murphy USA to create food demand around an unfamiliar private-label menu. Automated Retail Technologies has also designed the platform to support multiple brands and food categories, creating the possibility that Murphy USA could broaden the menu if the first phase proves successful.

Why is Murphy USA looking beyond fuel when fuel profitability is currently strong?

The timing is not driven by obvious weakness at the pump. Murphy USA reported second-quarter net income of US$209.1 million, up from US$145.6 million a year earlier, while adjusted EBITDA increased to US$377.3 million from US$286.0 million. Retail fuel volumes rose 3.9% across the chain and fuel contribution benefited from stronger margins.

Merchandise nevertheless remains strategically important because convenience retailers cannot assume unusually favourable fuel margins will persist indefinitely. Inside-store sales give operators another source of gross profit and can help convert a fuel visit into a larger transaction, making foodservice particularly attractive when it increases frequency or draws customers who were not initially stopping for gasoline.

Murphy USA’s 2026 guidance calls for merchandise contribution of roughly US$890 million to US$900 million, with management indicating performance was tracking toward the low end of that range after the first half. A scalable food platform that adds profitable non-nicotine sales could therefore support a part of the business where management still sees room for improvement.

The White Castle rollout remains too small and too early to alter Murphy USA’s earnings outlook. Its significance lies instead in the operating model being tested: branded hot food delivered in about two minutes from a compact autonomous platform, potentially without the labour and infrastructure burden of traditional convenience-store foodservice. If the economics work at selected larger stores, Murphy USA will have more than 1,800 locations through which to decide how far that model can travel.