Core Viewpoint - Casey's General Stores reported excellent quarterly results with significant revenue growth and strong same-store sales, despite maintaining their full-year guidance, which led to mixed market reactions [5][10][21]. Financial Performance - The company achieved 11.5% revenue growth, exceeding expectations across all business lines [5]. - Same-store sales increased by 4.3%, surpassing the anticipated 3.6% [5]. - Prepared food sales were notably strong, contributing to nearly 6% growth in same-store sales [6]. - Earnings per share beat expectations with a 75% increase on a $0.52 basis, indicating nearly 20% earnings growth [6]. Market Strategy - Casey's targets smaller markets, leveraging its gas stations and convenience stores to attract customers with fresh food offerings, such as breakfast pizza [2][3]. - The company operates over 200 more stores than the previous year, enhancing its market presence [9]. Management Commentary - CEO Dan Rebellis highlighted positive traffic growth due to effective merchandising and execution [8]. - The company plans to open at least 80 new stores in fiscal 2026 through mergers and acquisitions and new construction [11]. Guidance and Market Reaction - Management maintained their full-year guidance, expecting same-store sales to increase by 2% to 5% and fuel gallons sold to remain flat [11][12]. - The unchanged guidance led to initial market skepticism, but the stock rebounded later in the day, closing up nearly 4% [19][21].

Company Overview - Casey's General Stores operates 2,900 roadside convenience stores across 19 states, primarily in small towns, and has seen its stock price increase by nearly 2,400% over the past 20 years [1][2]. Market Strategy - The company targets smaller markets with gas stations and convenience stores that offer fresh hot food, which has contributed to its growth from a regional to a national player [2][4]. Financial Performance - The stock has risen 94% since being recommended two years ago, outperforming the S&P 500, although it experienced a sideways trading pattern over the summer [4]. - Recent quarterly results showed a strong performance with an 11.5% revenue growth, exceeding expectations across all business lines [5].

While several businesses are seemingly struggling as a result of the macro environment, Casey's General Stores (NASDAQ: CASY ) continues to defy the odds. Moreover, with the way the convenience store operator has performed, they have continuedContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage e ...

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Core Insights - Casey's General Stores reported first-quarter earnings of $5.77 per share, exceeding analyst expectations of $5.03, with revenue of $4.58 billion surpassing the consensus forecast of $4.48 billion [1][2] Financial Performance - The company achieved an inside gross margin of 41.9% for the quarter, which was above the expected 41.2% [2] Future Outlook - For fiscal 2026, Casey's reaffirmed its guidance for EBITDA growth of 10%–12%, same-store sales growth of 2%–5%, and flat to 1% growth in fuel gallons sold [2] - The company plans to open at least 80 new stores this year [2] Sales Drivers - The increase in inside same-store sales was attributed to positive traffic growth driven by the summer merchandising plan [2]

While several businesses are seemingly struggling as a result of the macro environment, Casey's General Stores (NASDAQ: CASY ) continues to defy the odds. Moreover, with the way the convenience store operator has performed, they have continuedContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage e ...

It's time for Jim and stop trading by one of my absolute favorite convenience stores slash restaurants is Casey General. They've got breakfast pizza which is dynamite. They're in all the 2900 stores all in places where nobody else is.The stock had a great move after that last run. Uh it's hard it's rarely down. Time to buy some cases.You like this one. Yeah. Oh my.I love it when you can buy them. Hit them where they ate. There's nobody else in their places the most part.Breakfast pizza. I don't know if you ...

Key Takeaways Casey's revenues grew 11.5% year over year to $4.57B, surpassing estimates.Inside same-store sales rose 4.3%, aided by higher traffic and summer merchandising.EBITDA increased 19.8% to $414.3M, with margin expanding 70 basis points to 9.1%.Casey's General Stores, Inc. (CASY) reported solid first-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.The company posted an impressive fiscal first quarter, marked by robust sal ...

Financial Data and Key Metrics Changes - Diluted EPS reached $5.77 per share, a 19% increase from the prior year [8] - Net income was $215 million, and EBITDA was $414 million, both reflecting a 20% increase from the prior year [8] - Total revenue for the quarter was $4.6 billion, an increase of $469 million, or 11.5% from the prior year [12][17] - Gross profit was $1.11 billion, an increase of $157 million, or 16.5% from the prior year [13] Business Line Data and Key Metrics Changes - Same-store sales increased by 4.3% for the first quarter, with prepared food and dispensed beverage sales up 5.6% [9] - Inside same-store sales were up 3.8%, with an average margin of 35.9%, an increase of approximately 50 basis points from the prior year [10] - Fuel same-store gallons sold increased by 1.7%, with a fuel margin of $0.41 per gallon [10] Market Data and Key Metrics Changes - The Mid-Continent region saw an approximate 3% decline in fuel gallons sold, indicating market share growth for the company [10] - The average retail price of fuel was $3.00 per gallon, down from $3.31 a year ago [13] Company Strategy and Development Direction - The company is in the last year of a three-year strategic plan, focusing on executing high-level operations and growth [8][20] - The company aims for 8-10% EBITDA growth, with half from base business growth and half from store growth [77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to execute and grow the business, highlighting strong performance in prepared food and grocery categories [8][20] - The company plans to update annual guidance during the second quarter earnings call, with August results aligning with expectations [19][60] Other Important Information - The company generated $262 million in free cash flow, compared to $181 million in the prior year [18] - The board maintained the quarterly dividend at $0.57 per share and repurchased approximately $31 million in shares during the quarter [18] Q&A Session Summary Question: Understanding cheese cost benefits - Management indicated that cheese costs were slightly favorable compared to the prior year, with 70% of forward cheese requirements locked for the fiscal year [28] Question: Update on Fuel 3.0 initiative - Fuel 3.0 now accounts for about 8.8% of total fuel procured, with ongoing integration and positive progress [30] Question: Price versus volume in-store - Management noted a 1.5% traffic increase and about 3% from price, primarily driven by tobacco category price increases [33] Question: Health of consumer across income cohorts - Strong performance was observed across all income cohorts, with lower income groups still shopping at healthy levels [38] Question: SEFCO business performance - SEFCO stores are under pressure but improvements are expected as the integration progresses and kitchens are remodeled [72] Question: Prepared food business momentum - Prepared food margins improved due to better procurement and growth in the whole pie business, offsetting Fikes' dilution [49] Question: M&A backdrop - The company is actively exploring small deal M&A opportunities, with ongoing conversations for larger deals [59] Question: Promotional spending levels - Promotional spending has increased, primarily funded by vendor partners, and is aligned with the growth in business and store count [68] Question: SEFCO integration and synergies - Integration is on track, with expectations for synergies to increase as kitchens are remodeled and prepared foods are introduced [71]

Financial Data and Key Metrics Changes - Diluted EPS reached $5.77 per share, a 19% increase from the prior year [6] - Net income was $215 million, and EBITDA was $414 million, both reflecting a 20% increase from the prior year [6] - Total revenue for the quarter was $4.6 billion, an increase of $469 million, or 11.5% from the prior year [11] - Gross profit was $1.11 billion, up 16.5% from the prior year [12] - Operating expenses increased by 14.6%, or $88.7 million, primarily due to unit growth and higher insurance and property taxes [14] Business Line Data and Key Metrics Changes - Same-store sales increased by 4.3% for the first quarter, with an average margin of 41.9% [7] - Prepared food and dispensed beverage sales rose by 5.6%, with an average margin of 58% [8] - Grocery and general merchandise sales increased by 3.8%, with an average margin of 35.9%, up 50 basis points from the prior year [9] - Fuel same-store gallons sold were up 1.7%, with a fuel margin of $0.41 per gallon [9] Market Data and Key Metrics Changes - The Mid-Continent region saw an approximate 3% decline in fuel gallons sold, indicating market share growth for the company [9] - The average retail price of fuel was $3.00 per gallon, down from $3.31 a year ago [12] Company Strategy and Development Direction - The company is in the last year of its three-year strategic plan, focusing on executing high-level operations and growth [6] - The integration of recent acquisitions, including the Fikes Wholesale transaction, is a key focus area [2][3] - The company aims to maintain a competitive edge through its prepared food offerings and grocery items, positioning itself as a one-stop shop for customers [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue executing its strategic plan and growing the business [6] - The company anticipates that the second quarter operating expenses will be up mid-teens, consistent with previous communications [18] - Management noted that guest insights from Casey's Rewards members indicate strong performance across all income cohorts [37] Other Important Information - The company has total available liquidity of $1.4 billion and a debt-to-EBITDA ratio of 1.8 times [16] - The board voted to maintain the quarterly dividend at $0.57 per share [17] - The company repurchased approximately $31 million in shares during the first quarter [17] Q&A Session Summary Question: Can you unpack the benefit from lower cheese costs and how much of your needs you have booked for the year? - Management indicated that cheese costs were slightly favorable compared to the prior year, with about 70% of forward cheese requirements locked for the remainder of the fiscal year [26][27] Question: Can you provide an update on the Fuel 3.0 initiative? - Management reported that approximately 8.8% of total fuel is now procured through Fuel 3.0, with about 3% from the base business [29] Question: Can you discuss the overall health of your consumer across income cohorts? - Management noted strong performance across all income cohorts, with lower income groups still shopping at healthy levels [37] Question: What are the learnings from the SEFCO integration? - Management stated that the SEFCO integration is on track, with expectations for synergies primarily coming from remodeling stores and enhancing prepared food offerings [71][72] Question: How should we think about store growth in the outer years? - Management indicated that the company aims for 4 to 5% unit growth per year, with opportunities for expansion in existing and adjacent markets [76][77]