Core Insights - Casey's General Stores ended its fiscal year positively, exceeding analyst expectations with strong fourth-quarter earnings [2][7] - The company is rapidly expanding, nearing 3,000 stores across 19 states, with significant acquisitions and new site developments [3][6] Financial Performance - Casey's reported a net income of $98.3 million for the quarter ended April 30, up from $87 million in the prior year, translating to $2.63 per share compared to $2.34 per share [7] - Revenue increased by 11% to $3.99 billion, surpassing estimates of approximately $3.93 billion [8] - Inside same-store sales rose by 1.7%, driven by strong performance in bakery and prepared food categories [8][11] Expansion Strategy - The company plans to open at least 80 new stores in fiscal 2026, aiming for a total of approximately 500 new stores over three years [6] - The acquisition of Fikes Wholesale for $1.145 billion included 198 stores and a fuel terminal, enhancing Casey's operational capacity in Texas [4][5] Market Position - Casey's operates primarily in small towns, with about two-thirds of its stores located in areas with populations of 20,000 or fewer [9] - The company has a strong balance sheet, owning nearly all its assets, which contributed to a stock value increase of over 10% following the positive results [10]

Core Insights - Casey's General Stores, Inc. (CASY) reported strong fourth-quarter fiscal 2025 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][3]. Financial Performance - The company achieved quarterly earnings of $2.63 per share, surpassing the Zacks Consensus Estimate of $1.93, marking a 12.4% increase from $2.34 in the prior-year quarter [3]. - Total revenues reached $3,992.8 million, exceeding the Zacks Consensus Estimate of $3,969 million, and reflecting a 10.9% increase from $3,600 million in the same period last year [3]. - Inside sales increased by 12.4% year over year to $1,413.6 million, driven by strong performances in bakery, prepared foods, and beverages [4]. Margin and Expense Analysis - Gross profit rose to $926 million from $798.1 million in the same quarter last year, with gross margin expanding by 100 basis points to 23.2% [5]. - EBITDA increased by 20.1% year over year to $263 million, with an EBITDA margin of 6.6%, surpassing expectations [6]. - Operating expenses rose by 14.5% to $663 million, primarily due to the operation of 246 additional stores [7]. Segment Performance - Prepared Food & Dispensed Beverage sales increased by 9.7% year over year to $391.7 million, although same-store sales decreased by 1.5% [8]. - Grocery & General Merchandise sales grew by 13.5% to $1,021.9 million, with a margin increase of 40 basis points to 34.8% [9]. - Fuel sales rose by 7.1% year over year to $2,438.9 million, with fuel gallons sold increasing by 17.8% [10]. Financial Position - As of April 30, 2025, the company operated 2,904 stores, with cash and cash equivalents of $326.7 million and long-term debt of $2.41 billion [11]. - The company did not repurchase any shares during the fiscal quarter and has approximately $295 million available under its current buyback authorization [11]. Dividend and Future Outlook - In June, the management increased the quarterly dividend by 14% to 57 cents per share, marking the 26th consecutive year of dividend increases [12]. - For fiscal 2026, management expects EBITDA growth of 10% to 12% and anticipates total operating expenses to increase by 8% to 10% [13]. - The company projects inside same-store sales growth of 2-5% and plans to open about 80 stores in fiscal 2026 [14].

Group 1 - Casey's General Stores (NASDAQ: CASY) is identified as a high-quality dividend growth stock with an expensive valuation, currently having a forward P/E ratio over 30x, which is above its 5-year average [1] - The company is positioned as a buy-and-hold investment, focusing on quality over quantity, appealing to lower and middle-class workers aiming to build investment portfolios of high-quality, dividend-paying companies [1] Group 2 - The article emphasizes the importance of conducting due diligence for investors, suggesting that the insights provided are for educational purposes only [1] - There is a mention of a long position in shares of a different company (V), indicating the author's personal investment strategy, but it does not directly relate to Casey's General Stores [2] - The article clarifies that past performance is not indicative of future results and that no specific investment recommendations are being made [3]

Financial Data and Key Metrics Changes - Fiscal year 2025 saw diluted earnings per share increase by 9% to $14.64, with net income reaching a record $547 million and EBITDA at $1.2 billion, up 13% from the previous year [8][19] - Total inside sales grew by 10.9%, with same-store sales up 2.6%, while prepared food and dispensed beverage sales increased by 10.3% [9][13] - Inside margin expanded by 50 basis points year-over-year to 41.5%, driven by effective vendor partnerships [9][10] Business Line Data and Key Metrics Changes - Total prepared food and dispensed beverage sales rose by 9.7% to $392 million, while grocery and general merchandise sales increased by 13.5% to $1.02 billion [13][14] - Same-store prepared food and beverage sales were up 1.5%, with an average margin of 57.8%, despite a 30 basis point decline from the previous year [14] - Same-store grocery and general merchandise sales increased by 1.8%, with an average margin of 34.8%, up 40 basis points year-over-year [15] Market Data and Key Metrics Changes - Fuel gross profit increased by 11%, with total fuel gallons sold up 13% and an average fuel margin of 38.7 cents per gallon [10][19] - Retail fuel sales rose by $162 million, primarily due to a 17.8% increase in total gallons sold, despite a 9% decline in average retail price [17] Company Strategy and Development Direction - The company emphasized a two-pronged approach of building and acquiring stores, achieving the largest store growth year in its history with 35 new builds and 235 units acquired [7][8] - The strategic plan focuses on accelerating food business, growing unit numbers, and enhancing operational efficiency, with a target of opening at least 80 stores in fiscal year 2026 [24][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's strength and durability, anticipating EBITDA growth of 10% to 12% in fiscal year 2026 [21] - The company expects same-store sales growth of 2% to 5% and operating expenses to increase by approximately 8% to 10% [21][22] Other Important Information - The effective tax rate for the quarter was 23%, compared to 22.4% in the prior year, with net interest expense rising to $27.9 million due to financing associated with acquisitions [19][18] - The company plans to allocate approximately $125 million for share repurchases in fiscal year 2026, funded entirely by operating cash flow [21][85] Q&A Session Summary Question: Fuel margins performance and synergies - Management noted that fuel margins exceeded expectations due to effective pricing management and improved procurement capabilities [31][32] Question: Same-store sales outlook for fiscal year 2026 - Management expressed comfort with the guidance range, attributing conservatism to current economic conditions and customer behavior [42][43] Question: Impact of illicit vape on sales - Management acknowledged a negative impact from illicit vape but noted strong growth in nicotine alternatives [52][53] Question: Operating expenses guidance - Management indicated that operating expenses would see mid-teen increases in the first half of fiscal year 2026, primarily due to the integration of acquired stores [60][62] Question: Share buyback strategy - Management clarified that the $125 million share buyback would be funded by operating cash flow, with no debt draw required [81][85]

Financial Data and Key Metrics Changes - Fiscal year 2025 saw diluted earnings per share reach $14.64, a 9% increase from the prior year [9] - The company generated a record $547 million in net income and $1.2 billion in EBITDA, marking a 13% increase from the previous year [9] - Total inside sales grew by 10.9% during the year, with inside same-store sales up 2.6% [10] - Total operating expenses increased by 14.5% or $84 million in the fourth quarter, with approximately 12% attributed to unit growth [19] Business Line Data and Key Metrics Changes - Total prepared food and dispensed beverage sales grew by 10.3%, with same-store sales up 3.5% [10] - Total grocery and general merchandise sales increased by 11.2%, with same-store sales up 2.3% [10] - Fuel gross profit rose by 11%, with total fuel gallons sold up 13% [11] Market Data and Key Metrics Changes - Same-store fuel gallons sold increased by 0.1% with a fuel margin of 37.6¢ per gallon [17] - Retail fuel sales rose by $162 million in the fourth quarter, primarily due to a 17.8% increase in total gallons sold [19] Company Strategy and Development Direction - The company aims to open at least 80 stores in fiscal year 2026, contributing to a total of approximately 500 stores over a three-year strategic plan [24] - The strategic plan focuses on accelerating the food business, growing the number of units, and enhancing operational efficiency [27] - The company is committed to improving operating expense management and generating more free cash flow [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's strength and durability, indicating the ability to succeed in various economic climates [12] - The company expects EBITDA to increase between 10% to 12% in fiscal year 2026, with inside same-store sales projected to rise by 2% to 5% [23] - Management acknowledged the impact of external factors, including inflation and consumer behavior, on sales outlook [46][62] Other Important Information - The effective tax rate for the quarter was 23%, compared to 22.4% in the prior year [21] - The company plans to allocate approximately $125 million for share repurchases in fiscal year 2026 [23][88] Q&A Session Summary Question: Fuel margins performance and expectations - Management noted that fuel margins exceeded expectations due to effective pricing management and improved procurement capabilities [34] Question: Guidance and synergies from acquisitions - Management discussed the expected headwinds from acquisitions and the anticipated synergies, particularly in fuel pricing and overhead rationalization [36] Question: Inside sales performance and drivers - Management acknowledged that inside sales fell slightly short of expectations due to a softer start in the fiscal year and adverse weather conditions [54] Question: Impact of illicit vape on sales - Management confirmed that illicit vape has negatively impacted the vape category, but noted growth in nicotine alternatives [59] Question: Consumer behavior and promotional strategies - Management indicated that consumer traffic remains stable, with targeted promotions aimed at different income cohorts [61][63] Question: Operating expenses guidance - Management provided insights into the expected cadence of operating expenses, highlighting the impact of acquisitions on the first half of fiscal year 2026 [66] Question: Share buyback strategy - Management clarified that the planned share buybacks would be funded through operating cash flow, with no additional debt drawn [88]

Company Overview - Casey's operates approximately 2,900 stores [6] and is a staple for millions of Americans [6] - The company has ~$19 billion in sitone nenc eor esv T tl E t i V l T t l T M b G T i Y t to a n e r p r s e a e o a e a m e m e r s u e s r a n s a c o n s p e r e a r u O [6] - Casey's is the 3rd largest convenience store chain and 5th largest pizza chain in the U S [6] - Approximately 75% of towns between 500 and 20,000 in Casey's distribution center footprint do not have a Casey's location [53] Financial Performance and Strategy - Casey's aims to deliver top quintile EBITDA growth of 8-10% [25] - The company targets free cash flow of approximately $1 25 billion through FY2026 [28] - Casey's has consistently delivered 8+% EBITDA growth over the short, medium, and long-term horizon [34] - In FY25, Casey's generated $585 million in free cash flow, compared to $136 million in FY19 [77] - Return on invested capital (ROIC) improved to 11 5% in FY25, up approximately 240 bps from FY19 [77] Strategic Differentiators - Approximately 70% of Casey's inside transactions do not include fuel [18] - Casey's has reduced the sales mix of the tobacco category on acquired stores by 450 bps [22] - Strategic investments in digital and food have resulted in a 41 5% inside gross margin, which is +750 bps higher than the industry average [22]

Market Performance - The small-cap Russell 2000 index increased by +10% over the past month, although it remains down -4% year to date [1] - The S&P 500 index stayed above the 6000 mark, gaining +0.09% on the day, while the Nasdaq rose by +0.31% [3] - The Dow index remained unchanged at 0.00%, influenced by a -1.2% drop in Apple shares [2][5] Company News: Apple - Apple shares fell -1.2% following a lackluster performance at the Worldwide Developers Conference, where details on AI competition were sparse [2] - Apple shares are down -29.5% from their 52-week highs reached after Christmas last year [2] Company News: Casey's General Stores - Casey's General Stores reported fiscal Q4 earnings of $2.63 per share, exceeding the Zacks consensus by 70 cents, with a year-over-year growth of +12.4% [6] - Revenues reached $3.99 billion, surpassing analyst expectations of $3.97 billion [6] - Same-store sales increased by +1.7%, and the company raised its dividend by +14% to 57 cents per share, marking its 26th consecutive increase [7] - Casey's shares are now trading at new all-time highs, reflecting strong performance [7]

Core Insights - Casey's General Stores reported strong fiscal 2025 results with double-digit revenue and earnings growth, exceeding expectations [2][5] - The company is effectively navigating a challenging retail environment, driven by strong bakery, hot sandwich, and nonalcoholic beverage sales [3][7] Financial Performance - Q4 FY24 revenue was $3.60 billion, increasing to $3.99 billion in Q4 FY25, representing an 11% growth [1] - Earnings per share rose from $2.34 to $2.63, marking a 12% increase [1] - Inside same-store sales grew by 1.7% in Q4 FY25, with a full-year growth of 2.6%, outperforming the industry [3] Cost Management - The company has successfully reduced same-store labor hours for 12 consecutive quarters, maintaining overall inside margin year over year [3] Growth Strategy - Casey's expanded its store count from 2,658 to 2,904, including 35 new builds and a $1.1 billion acquisition of Fikes Wholesale, its largest deal to date [4] - The company plans to open at least 80 new stores in fiscal 2026, continuing a three-year plan to expand by approximately 500 stores [6] Shareholder Returns - Casey's increased its quarterly dividend by 14% to $0.57 per share, marking the 26th consecutive annual increase [4] Market Reaction - Following the earnings release, Casey's stock rose over 7%, indicating positive investor sentiment [5]

Financial Performance - Casey's reported a net income of $546.5 million for fiscal year 2025, an increase of 8.9% compared to the previous year, with EBITDA reaching $1.2 billion, up 13.3%[4] - Net income for the twelve months ended April 30, 2025, was $546,520 thousand, a 8.9% increase from $501,972 thousand in 2024[21] - Net income for the three months ended April 30, 2025, was $98,307,000, an increase from $87,020,000 in 2024, representing a growth of 14.7%[33] - EBITDA for the twelve months ended April 30, 2025, reached $1,200,047,000, compared to $1,059,398,000 in 2024, reflecting a year-over-year increase of 13.3%[33] - Revenue for the twelve months ended April 30, 2025, reached $15,940,899 thousand, up from $14,862,913 thousand in 2024, marking a growth of 7.2%[23] Sales and Profitability - Inside same-store sales increased by 2.6% for the fiscal year, with total inside gross profit rising 12.5% to $582.4 million[6] - Fuel gross profit increased by 21.4% to $307.8 million, with total fuel gallons sold rising 17.8% year-over-year[8] - Gross profit margin for Prepared Food & Dispensed Beverage was 58.2% for the fiscal year 2025, slightly down from 58.7% in 2024[24] - Same-store sales margin for Prepared Food & Dispensed Beverage decreased to 3.5% in fiscal year 2025 from 6.8% in fiscal year 2024[24] - Fuel gallons sold increased to 3,196,852 for the twelve months ended April 30, 2025, compared to 2,828,669 in 2024, reflecting a growth of 13.0%[23] Store Expansion and Customer Engagement - The company opened or acquired 270 stores during the fiscal year, the highest in its history, including the acquisition of Fikes Wholesale and its 198 CEFCO convenience stores[6] - Casey's Rewards membership grew to over 9 million by year-end, indicating strong customer engagement[6] Financial Position and Liquidity - The company maintained a strong balance sheet, finishing the year with a debt-to-EBITDA ratio of 1.9x[6] - Available liquidity at April 30, 2025, was approximately $1.2 billion, consisting of $327 million in cash and $900 million in undrawn borrowing capacity[12] - Total assets increased to $8,208,118 thousand as of April 30, 2025, up from $6,347,433 thousand in the previous year, representing a growth of 29.2%[19] - Cash and cash equivalents at the end of the period were $326,662 thousand, up from $206,482 thousand, indicating a 58.0% increase[21] Investments and Acquisitions - The company invested $1,239,249 thousand in acquisitions during the fiscal year 2025, compared to $330,032 thousand in 2024, representing a substantial increase of 275.5%[21] - The company has outlined potential growth opportunities and strategic plans, including the integration and financial performance of acquired stores[34] Operating Expenses and Other Financial Metrics - Operating expenses for the fourth quarter increased by 14.5%, primarily due to operating 246 additional stores compared to the prior year[9] - Interest expenses for the three months ended April 30, 2025, were $27,916,000, up from $14,494,000 in 2024, indicating an increase of 92.9%[33] - Federal and state income taxes for the twelve months ended April 30, 2025, totaled $165,929,000, compared to $154,188,000 in 2024, marking an increase of 7.6%[33] - Depreciation and amortization for the three months ended April 30, 2025, was $107,443,000, up from $92,344,000 in 2024, which is an increase of 16.4%[33] Future Outlook - The company expects EBITDA to increase by 10% to 12% in fiscal 2026, with inside same-store sales projected to rise by 2% to 5%[15] - The company emphasizes that forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations[34] Dividends and Shareholder Returns - A quarterly dividend of $0.57 per share was announced, marking a 14% increase and the 26th consecutive annual increase[14] Investor Relations - The earnings conference call is scheduled for June 10, 2025, at 7:30 a.m. CDT, and will be accessible via the company's investor relations website[35] - Investor relations and media contacts are available for further inquiries, with specific contact details provided[36]

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables. Casey's General Stores, Inc. CASY will release its fourth-quarter financial results after the closing bell on Monday, June 9. Analysts expect the company to report quarterly earnings at $1.95 per share, down from $2.34 per share in the year-ago period. Casey's projects quarterly revenue of $3.95 billion, compared to $3.6 bil ...