Bull case
Yesway is supported by a clear reinvestment story after the sale of 29 non-core Iowa and Kansas stores, which produced $21 million of proceeds and removed assets that were generating only about half the chain average in top-line productivity and just over $1 million of annual store contribution. That capital can help fund a roughly $150 million annual, FCF-funded expansion budget, with 26 Southwest openings planned over the next year and the first Arizona location already launched, while new stores are described as far more productive and capable of maturing within 3-5 months. Fundamentally, the shares still appear undervalued at 8.3x to 9.8x 2027E EBITDA versus richer peer multiples, while EBITDA is modeled at $239 million in 2026 and $222 million in 2027, supported by a growing prepared-food platform that should lift margins and expand the company’s growth algorithm.