Investopedia: Should Investors Pull Over For TravelCenters Of America?

Selling gas and diesel is an intrinsically low-margin business - which probably explains why so many major integrated oil companies like Exxon Mobil (NYSE:XOM) and BP (NYSE:BP) sold out of the business years ago, and why companies like Kroger (NYSE:KR) and Walmart (NYSE:WMT) use fuel sales more like promotions and loss leaders.

That doesn't bode well for TravelCenters of America (AMEX:TA), one of the largest operators of travel centers (or truck stops, if you prefer) in the United States. While fuel resale is always going to be a difficult, low-margin business, EBITDAR and site-level operating expense improvement suggests that a better multiple could be in order for this stock.

Click here for more:
http://stocks.investopedia.com/stock-analysis/2012/Should-Investors-Pull-Over-For-TravelCenters-Of-America-TA-ODFL-XOM-PTRY0509.aspx