CORE - Core-Mark Leveraged To Post-Pandemic Improvement But Watch The Margins

• Core-Mark has gotten a boost from cigarette prices that has helped offset weaker sales of higher-margin food and candy, as consumers have changed their c-store shopping behavior during the pandemic.
• Post-pandemic, Core-Mark should be leveraged to stronger opportunities in food; from behavior normalization, expanded prepared food offerings, and growth in in-store food preparation.
• Core-Mark has been doing a little better than I expected on margins, raising the long-term FCF growth potential.
• Core-Mark shares offer a decent, but not spectacular, return at today's level.

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