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CORPUS CHRISTI, Texas -- Susser Holdings Corp. is a "best-in-class convenience store and foodservice operator and one of the most compelling growth stories in the c-store industry," Bonnie Herzog, equity senior analyst, wrote in the Wells Fargo Securities LLC 2014 Integrated Research & Economics Outlook, released today.
Herzog specifically pointed to the company's Laredo Taco Co. foodservice franchise, an attractive Texas market and Susser's management team led by CEO Sam L. Susser and "made up of highly capable operators" as reasons why the parent of Stripes convenience stores is poised to have an excellent 2014.
The Wells Fargo analyst also noted that the market is undervaluing Susser's retail business "below that of what we believe are inferior operators."
This report somewhat contradicts research released by Motley Fool. As CSNews Online reported yesterday, the financial website pointed to CST Brands Inc. as the top c-store operator vs. competitors Susser Holdings and The Pantry Inc. because CST, operator of Corner Store locations, owns more than three-quarters of the real estate on which its convenience stores are housed.
Herzog did not cite CST Brands in her report. However, she did say that the entire c-store industry is "embarking on a new era of sophistication and growth. Key drivers of this growth include favorable demographics, increased consolidation and increased consumer demand for convenience-oriented retail."
Corpus Christi, Texas-based Susser Holdings Corp. operates approximately 575 convenience stores in Texas, New Mexico and Oklahoma.