Applegreen Announces $1 Billion Expansion Plan for U.S. Travel Centers
Applegreen, a Dublin-based company, has unveiled a bold plan to invest over $1 billion in expanding its travel center business in the United States, the United Kingdom, and Ireland over the next five years. This monumental investment aims to develop new food-focused travel plazas, enhance electric vehicle charging infrastructure, and grow Applegreen’s foodservice operations in Ireland and Welcome Break motorway business in the U.K.
Expanding Footprint in the U.S.
Since entering the U.S. market in 2014, Applegreen has made significant strides, with nearly 600 locations spread across the U.S., U.K., and Ireland. The company has already poured over $1 billion into the U.S., establishing 165 sites in 12 states across the East Coast and Midwest.
Food as the Focus
While Applegreen has previously concentrated on revamping travel centers along the New York State Thruway, New Jersey Turnpike, and Garden State Parkway, the company is now setting its sights on food as a key component of its U.S. business strategy. In the U.S., Applegreen operates a range of popular restaurants, including Burger King, Shake Shack, Chick-fil-A, Popeyes, Starbucks, Dunkin, Panera Bread, and Panda Express. Notably, traditional fuel sales contribute less than 20% to Applegreen’s gross profit.
Future Plans
Looking ahead, Applegreen intends to introduce larger, food-centric travel plazas in the U.S., primarily along the East Coast, as part of its $1 billion investment initiative. The company anticipates this growth will be achieved through a combination of organic construction and strategic acquisitions.
Expert Insight
Joe Barrett, co-founder and Group Chief Executive of Applegreen, expressed optimism about the company’s position in the U.S. market, highlighting their expertise in managing food businesses, convenience stores, EV charging infrastructure, and gas filling stations.
Financial Success
Applegreen’s recent financial performance has been robust, with gross profits surpassing $1 billion in 2023, marking a 9% increase. Earnings before interest, tax, depreciation, and amortization also rose by nearly 7% last year, reflecting the company’s growth trajectory.
Looking to the Future
As Applegreen continues to expand its network of sites, enhance existing locations, and bolster its EV charging network, the company anticipates significant growth in its operations across Ireland, the U.K., and the United States. Joe Barrett emphasized the potential for further development and success in the years to come.