Business Analysis of TravelCenters of America

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of TravelCenters of America

TRAVELCENTERS OF AMERICA

Business Overview

TravelCenters of America LLC operates and franchises travel center, and standalone convenience store and restaurant locations in the United States and Canada. It operates in two segments, Travel Centers and Convenience Stores. The company offers diesel fuel and gasoline, and diesel exhaust fluid; and operates full service restaurants and quick service restaurants (QSRs). It also operates truck repair and maintenance facilities that offer oil change, wheel alignment, tire repair, and diesel filter cleaning, as well as air conditioning, brakes, and electrical systems diagnostics and repair services. In addition, the company provides RoadSquad, a roadside truck service; RoadSquad Connect, a centralized call center; RoadSquad OnSite, a truck and trailer repair service at customer facilities; and Reserve-It!, a parking program, as well as operates travel and convenience stores that offer packaged food and snack items, beverages, non-prescription drug and beauty supplies, batteries, automobile accessories, tobacco products, and music and video products. Further, it offers information center, banking desk, Wi-Fi Internet access, laundry, private shower, exercise facility, and theater or big screen television room services to drivers. The company serves trucking fleets and drivers, independent truck drivers, highway and local motorists, and casual diners. As of December 31, 2016, it operated 255 travel centers under the TravelCenters of America, TA, Petro Stopping Centers, and Petro brands; 233 convenience stores under the Minit Mart brand; approximately 200 full service restaurants under the Iron Skillet and Country Pride brands; approximately 430 QSRs under Arby's, Burger King, Dunkin' Donuts, Pizza Hut, Popeye's Chicken & Biscuits, Starbuck's Coffee, Subway, Taco Bell, O'Deli's Subs, Godfather's Pizza, and Hunt Brothers Pizza brands; and 52 standalone restaurants under the Quaker Steak & Lube brand. The company was founded in 1992 and is headquartered in Westlake, Ohio.

TravelCenters of America

TravelCenters of America


R&P Rank: 474
Sector: Retail
Industry:Specialty Retail
H.Q Location:Ohio
Website: www.tatravelcenters.com
Company Address:
24601 CENTER RIDGE ROAD, WESTLAKE OH 44145
Ph:440-808-9100

Business Analysis of TravelCenters of America

The Retail Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how TravelCenters of America compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by TravelCenters of America to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of TravelCenters of America with an interactive chart.

  1. Revenue Growth: TravelCenters of America reported a revenue growth of -5.8% year-on-year during 2016. Specialty Retail Industry grew at -1.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, TravelCenters of America spent 90.6% of its total revenues on COGS. Specialty Retail industry average (COGS share of revenue) in the same period was 76.8%
  3. R&D share of Revenues: TravelCenters of America R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, TravelCenters of America spent 2.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Specialty Retail industry average SG&A spending in the same period was 16.8%
  5. Inventory share of Revenues: As a percentage of revenue, TravelCenters of America spent 3.8% of its total revenues on Inventories. Specialty Retail industry average Inventory spending in the same period was 13.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, TravelCenters of America invested 2.9% of its total revenues on Accounts Payable (A/P) Specialty Retail industry average Accounts Payable investment in the same period was 7.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, TravelCenters of America invested 1.9% of its total revenues on Accounts Receivable (A/R). Specialty Retail industry average Accounts Receivable investment in the same period was 8.4%
  8. PP&E share of Revenues: As a percentage of revenue, TravelCenters of America invested 19.6% of its total revenues on Property, Plants, and Equipments (PP&E). Specialty Retail industry average PPE investment in the same period was 11.9%
  9. Intangibles share of Revenues: As a percentage of revenue, TravelCenters of America invested 2.3% of its total revenues on Intangibles. Specialty Retail industry average Intangibles investment in the same period was 7.2%
  10. Net Margins: TravelCenters of America Net Margins in the year 2016 were 0.0%. Specialty Retail industry average Net Margins in the same period were 2.7%

Sector and Industry Association of TravelCenters of America

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

TravelCenters of America is associated with Retail Sector and Specialty Retail Industry.

Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:

  • Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
  • Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries
  • Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
  • Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
  • Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
  • Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.

Industry Ranking of TravelCenters of America

With $5.5 billion revenues, TravelCenters of America ranked number 16 of all the companies in the US Specialty Retail industry. There were a total of 50 public companies in the US Specialty Retail industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Specialty Retail industry by revenues during 2016 were:

  1. Best Buy ($39.5 billion)
  2. AutoNation ($21.6 billion)
  3. Penske Automotive Group ($20.1 billion)
  4. Staples ($18.8 billion)
  5. CarMax ($15.1 billion)
  6. Murphy USA ($11.6 billion)
  7. CST Brands ($11.1 billion)
  8. Office Depot ($11 billion)
  9. Group 1 Automotive ($10.9 billion)
  10. Sonic Automotive ($9.7 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of TravelCenters of Americaand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of travelcenters-of-america

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Tractor Supply (TSCO) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Tractor Supply Co with $7 billion revenues in the year 2016 was the number 14 Specialty Retail company. Read this report to know the top competitors of Tractor Supply and identify growth and cost optimization opportunities of Tractor Supply

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Asbury Automotive Group Inc with $7 billion revenues in the year 2016 was the number 15 Specialty Retail company. Read this report to know the top competitors of Asbury Automotive Group and identify growth and cost optimization opportunities of Asbury Automotive Group

Michael Kors Holdings (KORS) Business Analysis – Analyze Historical Performance, Strategic...

Michael Kors Holdings Ltd with $5 billion revenues in the year 2016 was the number 17 Specialty Retail company. Read this report to know the top competitors of Michael Kors Holdings and identify growth and cost optimization opportunities of Michael Kors Holdings

Rush Enterprises (RUSHA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

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Barnes & Noble (BKS) Business Analysis – Analyze Historical Performance, Strategic...

Barnes & Noble Inc with $4 billion revenues in the year 2016 was the number 19 Specialty Retail company. Read this report to know the top competitors of Barnes & Noble and identify growth and cost optimization opportunities of Barnes & Noble

Revenues Analysis

TravelCenters of America (TA) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of TravelCenters Of America Llc (TA) from 2012 to 2016. TravelCenters of America generated a total of $5.5 billion revenues during 2016. TravelCenters of America reported a revenue growth of -5.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

TravelCenters of America (TA) Revenues And Revenue Growth From 2004 To...

This report provides the last thirteen years revenues and revenue growth of TravelCenters Of America Llc (TA) from 2004 to 2016. TravelCenters of America generated a total of $5.5 billion revenues during 2016. TravelCenters of America reported a revenue growth of -5.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

TravelCenters of America (TA) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of TravelCenters Of America Llc (TA) revenue growth with Specialty Retail industry growth during the last five years from 2012 to 2016. TravelCenters of America reported a revenue growth of -5.8% year-over-year during 2016. The Specialty Retail industry growth was -1.6% year-over-year during 2016. TravelCenters of America growth was slower than the industry during 2016.