CST Brands

This year's Fortune 500 marks the 63rd running of the list.

Fortune 500

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Earnings Per Share (last Fiscal Year)

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Total Return to Investors (last year)

Get insights into CST Brands including business profile, stock information, news, and rankings from Fortune.

CST Brands (CST): Company Profile, Stock Price, News, Rankings

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CST Brands | Fortune

CST Brands (CST): Company Profile, Stock Price, News, Rankings | Fortune

 Kim, CST Brands has been around for only three years. Why did you decide to sell instead of going it alone? As we came out of our second year anniversary, we were continuing to grow, continuing to implement our programs, but they're about a three-year payout for the programs we put in place. And in today's public markets, shareholders are looking for quarter by quarter, short term kind of focus. And we ended up with two activist shareholders in our book. And eventually resulted in the board just making the decision as we looked at all of our options to at least one in the strategic review and really test the market for the value for the company. We've seen a lot of consolidation going on in the convenience store business. How important is size? Do you have to be really big to be successful? The convenience store industry is one of those funny things. There's about 126,000 C stores in the US that sell fuel. 60% of them are single owner operators. So it's a really fragmented and a really family corner focused business. And then there are a couple really big conglomerates as well. So scale certainly helps you in terms of buying power, buying the salty snacks that you put on your shelves and getting a little bit better margin capture on it. But the small piece works, too, because it is such a neighborhood business that it fits your family business. You know your neighbors, and you have that connection. And they feel loyal and come back to you. Well, we're hearing that Amazon might be getting into the-- I saw that. I saw that. --consumer store. Maybe our timing was good. So given that Amazon is so huge and so popular with consumers, how much do you think they could disrupt the industry? We'll just have to see. I have often said-- and perhaps I said it too many times and they heard-- that what we sell, things like hot cups of coffee, a breakfast taco, and a gallon of gas, you can't really get on the internet. And so finding kind of that magic spot between being large enough to get scale, but being focused enough on the customer, I think is the way to success in the C store business. And I think Amazon may be challenged with that. So what do you think the chances are for success for Amazon if you do get into the business? Yeah, if they can figure out how to convert not just sales, but get customers to be loyal to come back to them, then I think they'll have success. But it's a person by person, conversation by conversation basis. And so for a company that's focused on selling through the digital space, what the C store customer is looking for is a much more personal interaction. 

Amazon Cant Compete With Convenience Stores

Leadership

CFT brand has been around for only three years. Why did you decide to sell instead of going it alone? As we came out of our second year anniversary, we were continued to grow, continue implement programs. But they're about a three year payout for the programs to put in place on in public market shoulders, looking for quarter by quarter short term kind of focus. And we ended up with two activist shareholders in our book and eventually resulted in the board just making the decision as we looked at all of our options at least one of strategic review and really test the market for the value of company. We've seen a lot of consolidation going on in the convenience store business. How important his side. You have to be really big to be successful. You know, the convenience store industries. One of those funny things is about 126,000 stores in the U. S. Sell fuel. 60% of them are single owner operators really fragmented and a really family corner focused business. And then there are a couple of really big conglomerates. Well, skills certainly helps you in terms of buying power, buying the the salty snacks and putting yourselves in getting a little bit better margin capture on it. But the small piece works, too, because it is such a neighborhood business that it's your family business. You know your neighbors, and you have that connection and they loyal and come back to you. Well, we're hearing that Amazon might be getting into the Asada they were. Our timing is good. So given that Amazon is so huge and so popular with consumers, how how much do you think they could disrupt the industry? You know, I wouldn't have to see, I have often said, and perhaps I said it too many times when they heard that what we sell, things like hot cup of coffee, breakfast taco and again on the gas you can't really get on the Internet. And so finally, kind of that that magic spot between being large enough to get scale but being focused enough on the customer, I think, is the way to success with your business. I think Amazon may be challenged with that. So what do you think the chances are for success for Amazon? If you do get into if they could figure out how to convert, not just sailed, but get customers to be loyal to come back to them. Then I think they'll have successes. But it is. It's a person by person conversation, my conversation basis for a company that's focused on killing through the digital space. What the tea store customers looking for is a much more personal interaction.

 Kim, when you were tapped to run CST Brands-- that was the first time you became CEO-- how was that different than other leadership roles that you've had? You're in charge. Even in all of my other executive roles, I was still a support function for our CEO. And I think the enormity of the position and the fact that I was responsible for 14,000 employees was really humbling-- to look at all of those folks and know that every decision I made was impacting not only them, but their families and their lives. And so it's much more serious than those roles. Did you find that you had to modify your natural leadership style to something else that-- so that you could be a more effective leader as boss of the entire company? I think at the core of all of it is being authentic and being who you are. And that's just who I am. And so I think, if you can keep your core piece there and be authentic wherever you are, you may have to modify the words you use and how you approach folks, but it's still you at the core. As the CEO of CST Brands, you are one of a very small group of women CEOs running the Fortune 500. Yes. There are only 21-- I know. --female CEOs out of 500. Why is that we're not seeing more women in those top slots? I wish I knew the answer to that, Susie. I'm sure it's a combination of things. It's not having enough people go from the entry level-- I think we have lots of women coming in at entry-level positions, but whether they're not getting promoted at the same rate as men inside or they voluntarily step aside-- it's probably a mix of those two things. Is there one key piece of advice that you could give to women on how they can advance to the top of their organization? One of the simple things I say is, while you're in a large organization, in particular, look for opportunities outside your organization to test your leadership skills. So nonprofits and serving on a nonprofit board, I think, is one of the best ways-- especially as you're in kind of a mid-level management. You're not stepping on anybody's toes around you, and yet you get to test your leadership skills in a less hostile environment. The risk-reward balance is much different in the nonprofit. World they just love having you there. Here we are at Fortune's most powerful women's summit, so I have to ask you-- how do you define power? Power isn't ultimately being the one in the front of the room. It's the one that gets things done. And so throughout my career, I have owned power in different forms, but I've been able to get the successes that the company needed from whatever vantage position I had. Clearly, being a CEO gives you the ability to make the decisions and those sorts of things, but sharing that power with a team is really, I think, even more important, as your CEO. Kim, you've had an amazing career. You've been a lawyer, a business executive, a CEO of a major Fortune 500 company. As you look back over your career, what's the best leadership advice that you ever got, and why did it stick with you? Susie, if I can give two-- the first starts back in high school back in Ohio. I had a track coach that recognized that I probably didn't have natural skill sets, but he told me, if I worked harder than anybody else, I would be successful. And that is a mantra that has lived with me ever since high school. If you work hard, good things follow. The second one I've been reminded of lately by Michelle Obama's, when they go low, we go high. If, as a leader, you stay on the high road, you will be fine. I have had folks tell me, when you get off the high road, it's much harder to get back onto it. And so clearly, as leaders, we need to continuously take the right path and stay on the high road. 

How CST Brands' CEO Went From Lawyer to C-Suite

came when you were tapped to run brands of the first time you became CEO. How was that different than other leadership roles that you had? You're in charge even in all of my other executive roles, I was still a support function for our CEO, and I think the enormity of the position and the fact that I was responsible for 14,000 employees was really humbling. Look at all of us to know that every decision I made was impacting family member, their families and their lives. So is much more serious than in those roles. Did you find that you had to modify your natural leadership style to something else that so that you could be, ah, more effective leader as boss of the entire company? I think at the core of all of it is being authentic and being who you are, and that's why I am. And so I think if you can kind of keep your core piece there and be authentic wherever you are, you may have to modify the word you used and how you approach, but it's still you. As a CEO brands, you are one of a very small group of women he eels running of the Fortune 500. They're only 21 female CEOs out of 5 500 Why's that? We're not seeing more women in the top, you know, I wish I knew the answer to that easy. It's, uh, I'm sure it's a combination of things not having enough people go from the entry level. I think we have lots of women coming into level positions, but whether they're not getting promoted at the same rate of men inside or they voluntarily step aside, you know, probably a mix of the two. Is there one key piece of advice that you could give to women on how they can advance to the top of the organization? You know, one of the simple things I say is, while you're in a large organization in particular, look for opportunities outside your organization to test your leadership skills. Nonprofits and serving on a nonprofit board, I think is one of the best ways, especially as you're kind of a mid level management. You're not stepping on anyone's toes around you, and yet you get to test your leadership skills in a less hostile environment. The the risk reward balance is much different in the nonprofit world. They just love having you there. Here we are at Fortune powerful women's Summit. So I have to ask you, how do you define power? Power isn't ultimately being the one in the front of the room. It's the one that gets things done on. So throughout my career I have owned power and different forms. But I've been able to get the the successes of the company needed from whatever advantage position I had. Clearly, being a CEO gives you the ability to make the decisions in those sorts of things. But sharing that power with the team is really, I think, even more important than your CEO. Kim. You've had an amazing career. You've been a lawyer, a business executive, a CEO of a major Fortune 500. Ah, company. As you look back over your career, what's the best leadership advice that you ever got? And why did it stick with you if I could give you to the first starts back in high school, back in Ohio, I had a track coach that recognize that I probably didn't have natural skill set, but he told me if I work harder than anybody else. I would be successful. Uh, and that is a mantra that has lived with me ever since. High school works. If you work hard, good things. Follow the 2nd 1 I've been reminded of lately by Michelle Obama's. When they go low, we go high. If, as a leader you stay on the high road, you will be fine. I have had folks tell me when you get off the high road, it's much harder to get back on to it. And so clearly as leaders, we need to continuously take the right path and stay on the high road.

Let's talk a little bit about the economy. How would you describe the health of the economy right now. While we are spread about among a number of states, 60 % of our stores in US are Texas- based. And so we continue to see strong sales in Texas, in particular in some markets like the Dallas, Austin, San Antonio, that are more diversified away from energy. We see continued consumers coming in the door. What we sell is time and even if the economy's good or the economy's bad, people are short on time and we sell small indulgences. So, even if the economy itself is weakening, you can still get a candy bar for less than a dollar and you feel like you've treated yourself. What about higher interest rates? Are you in favor of that? The word is that the federal reserve is gonna raise the interest rates before the end of the year. Probably it'd just be good to get it over with, there's this anticipation having it go over quarter by quarter against the markets [ UNKNOWN ] in arms. I think for just the health of the industry and for the economy, it'd be good just to have a A decision and move forward. Would that be a positive or a negative for your company? You know, if people can earn more money on their savings and spend more money in our stores, it helps. So anything that gets people with more money in the long run in their pockets, that's healthier, I think, for our economy and for retail as well. So we're getting close to election day. As you look at the new White House. What is the most important policy change that you would like to see that would really help American business and also boost the economy. I am a supporter of health care for employees and for the genesis behind affordable care like Obama Care It's not working as it's written. I would like to see reforms to make it work for what it's intended to do. I think it was very well intended. It's just not been executed as well as I would like. I know in our space not only has CSTs costs gone up but so are our employees costs. And that just doesn't feel right. So I'd like to say I have the solution I don't, I just know what we have currently isn't as effective as I think it was design to be. Have you endorsed Donald Trump or Hillary Clinton? I have not endorsed either but I'm happy to say I'm a Hillary supporter. How confident are you that she can make moves that will be better for the economy and. I think what I see in Secretary Clinton is someone who is just very gifted in policy. She obviously bit of a wonk, and very smart and very well- educated and educate herself on the issues. I think she will be a center to all of us. To make everybody happy, that's not the life of a politician. But I think she will be able to be a real politician and find compromise between the two sides of the aisle. [ BLANK_AUDIO ]

Why the CEO of CST Brands is Voting for Hillary Clinton

Kim Lubel thinks “she will be able to be a real politician”


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