Group 1: Kroger - Kroger's stock forecast indicates a 12-month price target of $67.06, with a current price of $68.91, suggesting a potential downside of 2.69% [3] - The company is expected to deliver significant capital returns to investors, including a $5 billion accelerated plan and $2.5 billion remaining on the existing authorization [3][4] - Despite a contraction in FQ4 2024 results, the organic adjusted comparable figure rose modestly, and growth is anticipated to return in 2025, supported by a reliable dividend [5][6] Group 2: Casey's General Stores - Casey's General Stores has a 12-month stock price forecast of $430.33, with a current price of $436.80, indicating a downside of 1.48% [9] - The company is growing through acquisitions and organic expansion, with revenue growth of 17% in Q3 driven by the acquisition of Fikes [9] - Casey's maintains a reliable dividend with a payout ratio of almost 15% of earnings, aiming to extend its history of annual distribution increases [11] Group 3: AutoZone - AutoZone's stock forecast shows a 12-month price target of $3,821.91, with a current price of $3,663.00, indicating an upside of 4.34% [13] - The company focuses on share buybacks instead of dividends, reducing its share count by over 3.25% year-over-year in FQ2, with $1.3 billion remaining for buybacks [14] - AutoZone is expected to continue modest single-digit growth, supported by a strong balance sheet and cash flow [15]

Core Points - A public hearing is scheduled to discuss a Casey's development project at 20 E. Ogden Ave. in Naperville, set for May 7 at 7 p.m. [1] - The developers are requesting a conditional use agreement and a zoning variance to construct a new 3,218 square foot convenience store, replacing the existing Bucky's gas station, which was acquired by Casey's General Stores in 2021 [2] - The zoning variance aims to permit the replacement of three light fixtures within a major arterial setback, as outlined in village documents [2]

Core Insights - IntelAgree has entered into an enterprise agreement with Casey's, a Fortune 500 company and a major player in the convenience store and pizza chain sectors in the U.S. [1][5] - Casey's will utilize IntelAgree's full capabilities, including the generative AI assistant Saige Assist, to enhance contract operations across various departments [2][3]. Company Overview - Casey's operates approximately 2,900 convenience stores and is recognized as the third-largest convenience store retailer and the fifth-largest pizza chain in the United States [5]. - The company focuses on providing freshly prepared foods, quality fuel, and friendly service, with a diverse menu including pizza and bakery items [5]. Technology and Implementation - The implementation of IntelAgree's platform reflects Casey's commitment to operational excellence, automation, and enterprise-wide visibility [2][3]. - IntelAgree's tools will support every stage of the contract lifecycle, offering features such as a centralized contract repository, automated approvals, and real-time dashboards [3][4]. - The platform aims to transform contracts into a strategic advantage for Casey's by simplifying the contract process from end to end [4]. Strategic Alignment - Both companies share a commitment to making a meaningful impact in their communities, with Casey's focusing on delivering value to its guests and team members [3]. - IntelAgree emphasizes the importance of streamlining contract management to allow teams to focus on impactful work rather than busy work [6].

Core Insights - Zacks Premium offers various tools and services to help investors achieve long-term success in the stock market [1] - The Zacks Focus List is a curated portfolio of 50 stocks expected to outperform the market over the next 12 months [3][4] Performance Metrics - In 2020, the Focus List gained 13.85% on an annualized basis, outperforming the S&P 500's return of 9.38% [5] - Cumulatively, the Focus List has returned 2,519.23% from February 1, 1996, to March 31, 2021, compared to the S&P's return of 854.95% during the same period [5] Methodology - The Focus List is based on earnings estimate revisions, which are critical for predicting future growth and profitability [6][7] - The Zacks Rank, a proprietary stock-rating model, utilizes changes in quarterly earnings expectations to help build a winning portfolio [8] Zacks Rank Components - The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise, which are recalculated nightly [9] - Stocks in the Focus List are primarily from 1 (Strong Buy) or 2 (Buy) ranked companies, indicating a bullish earnings consensus among analysts [9] Case Study: Casey's General Stores - Casey's General Stores, added to the Focus List at $171.98 per share, has seen a share price increase of 167.93% to $460.78 [12] - The Zacks Consensus Estimate for Casey's earnings has increased to $13.95, with an average earnings surprise of 22.7% [13]

Core Viewpoint - Casey's General Stores is experiencing a positive uptrend, supported by strong FQ3 results that affirm both near and long-term outlooks, leading to a share price increase of over 5% [1][12] Financial Performance - In FQ3 2025, Casey's reported consolidated revenue of $3.9 billion, reflecting a 17.1% year-over-year increase, driven by organic growth and acquisitions, surpassing MarketBeat's consensus by 420 basis points [4] - Inside sales grew by 15%, while gasoline gallons sold improved by 20.4%. On a comparable store basis, inside sales rose by 3.7%, and gasoline gallons increased by 1.8% [4] - The company maintained its comp-store growth target of 3% to 5% and increased its FY EBITDA growth outlook by 100 basis points to 11% [5] Market Sentiment and Analyst Ratings - The 12-month stock price forecast for Casey's is $423.09, indicating a 6.94% upside, with a Moderate Buy rating based on 11 analyst ratings [6] - The stock has risen 37% over the past twelve months, with recent revisions suggesting a potential 7.5% upside, which could lead to new all-time highs [7] - Institutional buying has increased, with Q1 2025 activity reaching a multiyear high, as institutions own over 70% of the stock [8] Balance Sheet and Capital Management - Casey's has suspended share buybacks in preparation for the Fikes acquisition but is expected to resume them soon. Total assets increased by nearly $1.9 billion, about 30%, while liabilities rose by $1.5 billion [10] - Equity increased by 13.2%, and long-term debt leverage remains low at less than 1x equity, ensuring positive cash flow and a safe dividend yield of approximately 0.5% [11]

Financial Data and Key Metrics Changes - Diluted EPS was $2.33 per share and net income was $87 million, both flat compared to the prior year [10] - EBITDA increased to $242 million, up 11% from the prior year [27] - Total revenue for the quarter was $3.9 billion, an increase of $574 million or 17.3% from the prior year [17] - Gross profit was $913 million, an increase of $126 million or 16% from the prior year [20] Business Line Data and Key Metrics Changes - Inside same-store sales increased by 3.7% for the quarter, or 8% on a two-year stack basis [12] - Prepared food and dispensed beverage sales rose by $48 million to $397 million, an increase of 13.7% [19] - Grocery and general merchandise sales increased by $138 million to $1 billion, an increase of 15.9% [19] - Same-store prepared food and dispensed beverage sales were up 4.7% or 12.6% on a two-year stack basis [12] Market Data and Key Metrics Changes - Fuel gallons sold were up over 20% [10] - Same-store gallons sold increased by 1.8% with a fuel margin of $0.364 per gallon [14] - The Mid-Continent region saw a decline of approximately 4% in fuel gallons sold, indicating market share growth [15] Company Strategy and Development Direction - The company is focused on accelerating the food business, with strong performance in prepared food innovation [36] - The integration of the Fikes transaction is a key strategic priority, with expectations of achieving $45 million in synergies over three to four years [64] - The company aims to enhance operational efficiency, achieving reduced same-store labor hours for 11 consecutive quarters [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a potentially volatile environment due to enhanced capabilities and a resilient business model [49][50] - The company expects to achieve its target leverage ratio of approximately 2 times by the end of the fiscal year [28] - Future guidance includes an expected EBITDA increase of approximately 11% [29] Other Important Information - Operating expenses increased by 17.8% or $101.3 million in the quarter, with 14% attributed to unit growth [24] - The effective tax rate for the quarter was 19.2%, down from 24.1% in the prior year [26] - The company generated $91 million of free cash flow, compared to using $27 million in the prior year [28] Q&A Session Summary Question: How has Casey's adapted to a volatile policy backdrop? - Management highlighted improvements in procurement, data analytics, and technology that enhance confidence in navigating volatility [47][48] Question: What are the timelines for improving margins at Fikes? - Management indicated that improvements will come with kitchen installations and product mix optimization, with early positive results from converted stores [52][56] Question: How is the integration of Fikes performing? - Management expressed satisfaction with early performance, noting that the integration is progressing well despite winter weather challenges [62] Question: How does Casey's position itself in a potential recession? - Management noted that Casey's offers essential daily needs at lower price points, making it resilient during economic downturns [75][76] Question: What is the outlook for labor hour reductions? - Management stated that there is still runway for reducing same-store labor hours, with a commitment to a 1% reduction per year [133] Question: How is the wings business performing? - Management confirmed that the wings test is ongoing, with positive early results but no final decision on broader rollout yet [122]

Financial Data and Key Metrics Changes - Diluted EPS was $2.33 per share and net income was $87 million, both flat compared to the prior year [10] - EBITDA increased to $242 million, up 11% from the prior year [27] - Total revenue for the quarter was $3.9 billion, an increase of $574 million or 17.3% from the prior year [17] - Gross profit was $913 million, an increase of $126 million or 16% from the prior year [20] Business Line Data and Key Metrics Changes - Inside same-store sales increased by 3.7% for the quarter, or 8% on a two-year stack basis [12] - Prepared food and dispensed beverage sales rose by $48 million to $397 million, an increase of 13.7% [19] - Grocery and general merchandise sales increased by $138 million to $1 billion, an increase of 15.9% [19] - Same-store prepared food and dispensed beverage sales were up 4.7% or 12.6% on a two-year stack basis [12] Market Data and Key Metrics Changes - Fuel gallons sold were up over 20% [10] - Same-store gallons sold increased by 1.8% with a fuel margin of $0.364 per gallon [14] - The Mid-Continent region saw a decline of approximately 4% in fuel gallons sold, indicating market share growth [15] Company Strategy and Development Direction - The company is focused on accelerating the food business, with strong performance in prepared food innovation [36] - The integration of the Fikes transaction is a key strategic initiative, with expectations of achieving $45 million in synergies over three to four years [64] - The company aims to enhance operational efficiency, achieving reduced same-store labor hours for 11 consecutive quarters [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a potentially volatile environment due to enhanced capabilities and a resilient business model [49][50] - The company expects to achieve its target leverage ratio of approximately 2 times by the end of the fiscal year [28] - Management anticipates EBITDA growth of approximately 11% for the fiscal year [29] Other Important Information - Operating expenses increased by 17.8% or $101.3 million in the quarter, with 14% attributed to unit growth [24] - The effective tax rate for the quarter was 19.2%, down from 24.1% in the prior year [26] - The company maintained its quarterly dividend at $0.50 per share [29] Q&A Session Summary Question: How has Casey's adapted to a volatile environment? - Management highlighted improvements in procurement, data analytics, and guest insights, enhancing confidence in navigating uncertainties [47][48] Question: What are the timelines for improving margins at Fikes? - Management indicated that improvements in prepared food margins will take time, with kitchens being added to stores to enhance product offerings [53][56] Question: How is the integration of Fikes performing? - Early performance is satisfactory, with high-quality stores in attractive geographies, but the first quarter was impacted by winter weather [62] Question: What is the outlook for consumer spending? - Management noted some pressure on lower-income consumers but emphasized that the majority of their customer base remains stable [85] Question: How is the company positioned in a recessionary environment? - Management stated that Casey's has historically performed well during recessions due to its focus on basic daily needs and competitive pricing [75][76] Question: What is the status of the wings business rollout? - The wings business is still in early testing stages, with positive results so far, but no final decision has been made for broader rollout [122] Question: How much EBITDA did Fikes contribute this quarter? - Fikes was EBITDA dilutive this quarter due to integration costs, but it is expected to be modestly positive in the next quarter [113]

Core Insights - Casey's General Stores reported strong fiscal 2025 third-quarter results, exceeding analysts' expectations in earnings and revenue, driven by strategic growth initiatives [2][6] Financial Performance - Earnings per share (EPS) for the quarter was $2.33, surpassing the consensus estimate of $2.00, while revenue reached $3.904 billion, exceeding the expected $3.723 billion [2][3] - Year-over-year revenue growth was 17.3%, with EBITDA increasing by 11.4% to $242 million [3][6] - Fuel gross profit rose by 17.4% to $302 million, and inside gross profit increased by 14.3% to $573 million [3][7] Strategic Initiatives - The company has focused on expanding its store footprint through acquisitions, adding 228 stores and building 21 new locations since the start of the fiscal year [5][8] - Prepared food offerings have been a key driver of growth, with same-store inside sales increasing by 3.7% and sales of prepared foods and beverages rising by 4.7% [7][11] Operational Insights - Operating expenses increased by approximately 18% due to acquisition-related costs, but same-store operating expenses rose only 3.2% when excluding credit card fees [8][11] - The company maintained solid liquidity with $1.3 billion in available resources and did not repurchase shares during the quarter, indicating a strategy to preserve cash reserves [9] Future Outlook - Casey's anticipates an EBITDA growth of roughly 11% for fiscal 2025, with plans to add about 270 new stores throughout the year [10][11] - Continued expansion into less competitive markets and a focus on high-margin products are expected to remain key strategic priorities [11]

Financial Performance - Net income for the third quarter was $87.1 million, flat compared to the prior year, with diluted EPS also flat at $2.33[5] - Total revenue for the third quarter increased by 17.2% to $3.9 billion, driven by a 15.3% rise in inside sales and a 20.4% increase in fuel gallons sold[18] - EBITDA for the third quarter rose 11.4% to $242.4 million, primarily due to higher inside and fuel gross profit[6] - Net income for the nine months ended January 31, 2025, was $448,213 thousand, compared to $414,952 thousand for the same period in 2024, reflecting an increase of 8.0%[22] - Net income for the three months ended January 31, 2025, was $87,097,000, compared to $86,933,000 for the same period in 2024, reflecting a slight increase[27] - EBITDA for the nine months ended January 31, 2025, reached $937,030,000, up from $840,372,000 in 2024, indicating a growth of approximately 11.5%[27] Sales and Revenue Growth - Inside same-store sales increased by 3.7% year-over-year, with prepared food and dispensed beverage same-store sales up 4.7%[7] - Same-store fuel gallons sold increased by 1.8%, with total fuel gross profit up 17.4% to $302.1 million[8] - Revenue for the three months ended January 31, 2025, was $3,903,633 thousand, up from $3,329,247 thousand in the same period of 2024, indicating a growth of 17.2%[24] - Same-store sales growth for prepared food and dispensed beverage was 4.7% for the fiscal year 2025[24] Expenses and Liabilities - Total operating expenses increased by approximately 18%, influenced by operating 254 additional stores and one-time costs from the Fikes acquisition[9] - Total liabilities increased to $4,802,862 thousand as of January 31, 2025, from $3,332,052 thousand on April 30, 2024, an increase of 43.9%[20] - Interest expenses increased to $29,415,000 for the three months ended January 31, 2025, compared to $14,146,000 in 2024, showing a significant rise[27] - Federal and state income taxes for the nine months ended January 31, 2025, totaled $136,578,000, compared to $129,020,000 in 2024, marking an increase of about 5.4%[27] - Depreciation and amortization expenses for the three months ended January 31, 2025, were $105,203,000, up from $88,950,000 in 2024, reflecting a growth of approximately 18.3%[27] Liquidity and Capital - As of January 31, 2025, the company had approximately $1.3 billion in available liquidity, including $395 million in cash[12] - Cash and cash equivalents at the end of the period increased to $394,815 thousand from $177,881 thousand year-over-year, a rise of 121.5%[22] - The company reported a significant increase in payments for acquisition of businesses, net of cash acquired, totaling $1,211,567 thousand for the nine months ended January 31, 2025, compared to $296,809 thousand in 2024[22] Future Outlook - The company expects fiscal year 2025 EBITDA to increase approximately 11% and plans to add around 270 stores[15][16] - The company is exploring growth opportunities and potential impacts from the Fikes transaction, with expectations for future periods being cautiously optimistic[28] - The company acknowledges risks related to the execution of its strategic plan and the integration of acquired stores, which may affect future performance[28] Corporate Governance - The board approved a quarterly dividend of $0.50 per share, payable on May 15, 2025[14] - The earnings conference call is scheduled for March 12, 2025, at 7:30 a.m. CDT, providing an opportunity for investors to gain insights into the company's performance[29] - Corporate information and earnings details can be accessed through the company's investor relations website[29] - Investor relations contact is Brian Johnson, reachable at (515) 446-6587, for any inquiries related to financial performance[30]

Store Operations - As of January 31, 2025, Casey's operates a total of 2,893 stores, with 228 new stores added through acquisitions, including 198 from the Fikes acquisition[74]. - Operating expenses increased by $101,292 (17.8%) to $670,200, with approximately 14% of the increase attributed to operating 254 more stores[88]. - Operating expenses increased by $179,887 (10.5%), with approximately 8% attributed to operating 254 more stores compared to the prior year[98]. Financial Performance - Total revenue for the third quarter of fiscal 2025 increased by $574,386 (17.3%) compared to the same period in fiscal 2024, primarily driven by the Fikes acquisition[82]. - Net income for the third quarter of fiscal 2025 was $87,097, slightly up from $86,933 in the comparable period[92]. - Total revenue for the first nine months of fiscal 2025 increased by $685,243 (6.1%) to $11,948,141 compared to $11,262,898 in the prior year, primarily driven by $459,422 from the Fikes acquisition[93]. - Net income increased by $33,261 (8.0%) to $448,213, driven by higher profitability in-store and in fuel, partially offset by increased operating expenses[102]. - EBITDA for the first nine months of fiscal 2025 increased by 11.5% to $937,030 compared to $840,372 in the prior year[105]. Revenue Breakdown - Same-store sales of prepared food and dispensed beverage increased by 4.7%, while grocery and general merchandise increased by 3.3% during the quarter[80]. - Fuel revenue increased by $315,148 (15.4%) due to a 20.4% increase in gallons sold, despite a 4.2% decrease in average retail price per gallon[82]. - Other revenue increased by $73,772 (117.8%) for the third quarter of fiscal 2025, primarily driven by an increase in wholesale fuel revenue from the Fikes acquisition[83]. - Prepared food and dispensed beverage revenue increased by $115,402 (10.4%) due to a same-store sales increase of 4.4% and approximately 6.0% from store growth[93]. - Grocery and general merchandise revenue rose by $295,035 (10.4%) with a same-store sales increase of 2.6% and approximately 7.8% from store growth[93]. - Retail fuel revenue increased by $211,611 (3.0%) due to an increase in gallons sold by 244,531 (11.5%), despite a 7.6% decrease in average retail price per gallon[93]. Cash Flow and Investments - Cash provided by operating activities increased by $152,396 to $756,996, primarily from improved revenue less cost of goods sold[109]. - Cash used in investing activities increased by $920,353, totaling $1,537,066, primarily due to acquisition-related activity from the Fikes acquisition[110]. - Cash provided by financing increased by $1,157,278, mainly due to proceeds from long-term debt of $1,100,000 to partially fund the Fikes acquisition[111]. Debt and Interest Rates - As of January 31, 2025, the company's total long-term debt amounts to $2,439,038,000 after accounting for current maturities and debt issuance costs[112]. - The company has a variable rate incremental term loan facility of $850,000,000, requiring quarterly installments ending October 30, 2029[112]. - An immediate 100-basis-point move in interest rates would result in an approximate annualized impact of $10.4 million on interest expense[120]. - The company has issued various senior notes with interest rates ranging from 2.85% to 5.43%, with total senior notes amounting to $1,000,000,000[112]. Risk Factors - The company faces risks from increases in food ingredient costs and potential disruptions in the distribution network[114]. - The company is subject to extensive governmental regulations that could adversely affect revenues, particularly related to tobacco and nicotine products[115]. - The company acknowledges that general economic conditions and consumer preferences may impact its financial condition and results of operations[116]. - The company emphasizes the importance of compliance with data security regulations to protect sensitive information, which could impact financial results[114]. EV Infrastructure - Casey's has 230 EV charging stations at 47 stores across 13 states as of January 31, 2025, reflecting its commitment to expanding EV infrastructure[77]. Taxation - The effective tax rate decreased to 19.2% in the third quarter of fiscal 2025, down from 24.1% in the same period of fiscal 2024[91]. Hedging Strategies - The company utilizes futures contracts to hedge against the volatility of fuel prices associated with non-store inventoried fuel[121]. Future Capital Needs - Future capital needs for operations and store growth are expected to be met from cash generated by operations and additional long-term debt[112].