O'Reilly opened 47 net new stores in the third quarter and 111 net new stores in the first nine months of 2024. They also began operating 23 stores in Canada from the Vast Auto acquisition. They anticipate a total of 190-200 net new store openings in 2024 and 200-210 in 2025.

The acquisition of Vast Auto, completed in January 2024, represents O'Reilly's entrance into the Canadian automotive aftermarket. Vast Auto operates two distribution centers and six satellite warehouses supporting 23 company-owned stores and thousands of independent jobber and professional customers across Eastern Canada.

O'Reilly continues to focus on its dual market strategy, serving both DIY customers and professional service providers. They aim to achieve growth by capitalizing on competitive advantages such as superior customer service and a strategic distribution network.

Operating income was flat at $897 million for the quarter, despite a 4% increase in sales, due to increased SG&A expenses. The nine-month operating income increased 2% YoY to $2.51 billion, with a higher SG&A percentage of sales due to depreciation costs.

SG&A expenses increased 7% YoY to $1.35 billion for the quarter and $3.94 billion for the nine months. The increase is primarily due to additional Team Members, vehicles, and expenses associated with the Vast Auto acquisition.

Management has been successful in reducing the effects of merchandise cost increases through supplier incentives, economies of scale, and selective forward buying. They have also been able to pass on cost increases through higher selling prices.

There have been no material changes to the risk factors set forth in the annual report on Form 10-K for the year ended December 31, 2023.

The business is influenced by factors such as inflation, fuel and energy costs, unemployment trends, and interest rates. Future changes in these areas may negatively impact consumers' disposable income.

The company notes that supply chain disruptions could impact their business, though they do not provide specifics in this filing.

O'Reilly is focused on its dual market strategy, serving both DIY customers and professional service providers, to gain market share in existing and new markets. They are also focused on the core values of hard work and excellent customer service.

The company's product line includes an assortment of products differentiated by quality and price, reflecting 'good,' 'better,' and 'best' alternatives. This strategy aims to cater to a broad range of customer needs and budgets.

O'Reilly offers enhanced services and programs such as used oil recycling, battery testing, electrical testing, and loaner tool programs to attract and retain customers.

The increase in SG&A as a percentage of sales was principally due to depreciation costs for the accelerated refreshment of store related capital expenditures and information technology investments.

The company has been successful in reducing the effects of merchandise cost increases through supplier incentives, economies of scale, and selective forward buying. They have also been able to pass on cost increases through higher selling prices.

The business is somewhat seasonal, with store sales and profits historically higher in the second and third quarters (April through September) than in the first and fourth quarters (October through March).

The company continues to invest in enhanced information technology systems and tools to support their business strategy.

The company is focused on implementing omnichannel initiatives to enhance the customer experience.

The filing does not provide specific details on R&D investments or new technological capabilities, beyond general IT investments.

The company repurchased $540.7 million of shares in the quarter and $1.6 billion in the nine-month period. As of September 30, 2024, they had $967.7 million remaining under the share repurchase authorization.

Capital expenditures increased due to the timing of property acquisitions, closings, and construction costs for new stores, partially offset by an increase in the number of owned new store openings.

The acquisition of Vast Auto was funded with cash, reflecting the company's ability to deploy capital for strategic growth initiatives.

The company has invested in tax credit funds that promote renewable energy and has a remaining commitment to purchase approximately $200 million RETCs.

The filing does not provide specific details on environmental or social initiatives, beyond the renewable energy tax credit investment.

The filing does not provide specific details on governance practices beyond the standard certifications.

The company's business is influenced by the number of U.S. miles driven, number of U.S. registered vehicles, annual rate of light vehicle sales, and average vehicle age. The average age of vehicles on the road is increasing, which benefits the aftermarket.

Inflationary cost pressures impact the business, however, historically they have been successful in reducing the effects of merchandise cost increases and passing along cost increases through higher selling prices.

The company notes that macroeconomic factors such as inflation, fuel and energy costs, and unemployment trends may impact consumer spending and their business.