Casey's General Stores Inc. (CASY) continues to distinguish itself in the convenience store sector through robust operational strategies that bolster its market position and financial performance. A resilient business operating model, stellar omnichannel capabilities, expanded customer outreach and exclusive private-label offerings strengthen Casey's competitive position. Through a strategic blend of organic growth and targeted acquisitions, Casey's is aggressively expanding its footprint. Decoding Casey's ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights Casey's General Stores (CASY) as a strong value stock based on its financial metrics and Zacks Rank [2][3][6] Group 1: Value Investing Strategy - Value investing is a popular strategy that aims to identify undervalued companies using fundamental analysis and established metrics [2] - Zacks has developed a Style Scores system to categorize stocks, with a focus on the "Value" category for value investors [3] Group 2: Casey's General Stores (CASY) Metrics - CASY currently holds a Zacks Rank of 2 (Buy) and an A grade in the Value category, indicating strong potential as a value stock [3] - The P/B ratio for CASY is 4.38, which is attractive compared to the industry average of 4.58, with a historical range between 3.42 and 4.80 over the past year [4] - CASY's P/CF ratio stands at 15.90, which is lower than the industry's average of 16.31, with a historical range from 12.32 to 17.09 [5] - These metrics suggest that CASY is likely undervalued, making it an appealing investment opportunity [6]

Core Insights - The podcast discusses three companies in the convenience store and gas station industry: Alimentation Couche-Tard, Casey's General Stores, and Murphy USA, highlighting their unique business strategies and market performance. Alimentation Couche-Tard - Couche-Tard operates nearly 17,000 stores globally, primarily under the Circle K brand, and has successfully integrated over 65 acquisitions since 2004 [4][6] - The company has a market cap of approximately CAD 72 billion and continues to pursue growth through acquisitions despite recent setbacks [6][7] - Couche-Tard made a CAD 42 billion offer for Seven & i Holdings, the parent company of 7-Eleven, but faces challenges due to regulatory concerns and the need for a higher offer [7][8] - The company’s sales growth has been uneven, largely due to volatile fuel prices, but it maintains steady profitability metrics with gross margins around 17-18% and operating margins of 5-6% [8][9] - Nicotine products account for nearly 40% of merchandise sales, and shifting consumer preferences towards healthier options and electric vehicles may impact future sales [9][10] Casey's General Stores - Casey's focuses on underserved areas, with 72% of its stores located in communities with fewer than 20,000 people, which is seen as a strategic advantage [16][17] - The company has outperformed the S&P 500 over the past decade, with a five-year operating profit growth of nearly 17% [19][20] - Casey's has a gross margin of close to 60% on food sales, while fuel margins are around 10%, indicating a strong focus on in-store sales [21] - The company trades at approximately 28 times earnings, and valuation metrics are at the high end of their historical range, suggesting a cautious approach to investment [22] Murphy USA - Murphy USA has seen significant stock performance, with an increase of over 820% in the past decade, and is known for its aggressive stock buyback strategy [23] - The company emphasizes strong capital allocation, focusing on share buybacks, dividends, and strategic acquisitions [24][25] - Murphy USA targets underserved communities, similar to Casey's, and aims to serve a customer base that is increasingly living paycheck to paycheck [26][27]

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Core Insights - Casey's General Stores, Inc. (CASY) reported first-quarter fiscal 2025 results with total revenues of $4,097.7 million, which missed the Zacks Consensus Estimate of $4,112 million, but increased by 5.9% year over year. Earnings per share were $4.83, surpassing the estimate of $4.54 and reflecting a 6.9% increase from $4.52 in the prior-year period [1][2]. Revenue Performance - Total inside sales increased by 7.6% year over year to $1.47 billion, driven by strong performances in prepared food and dispensed beverage categories. Inside same-store sales rose by 2.3%, compared to a 5.4% increase in the previous year [3]. - Prepared Food & Dispensed Beverage sales rose by 8.7% year over year to $405.1 million, while same-store sales increased by 4.4% [7]. - Grocery & General Merchandise sales increased by 7.2% to $1.07 billion, with same-store sales rising by 1.6% [8]. - Fuel sales improved by 5.3% year over year to $2.56 billion, with fuel gallons sold jumping by 8.2% to 772.5 million [9]. Margin and Profitability - Gross profit rose by 8.8% year over year to $955.3 million, with gross margin expanding by 60 basis points to 23.3% [4]. - Inside gross profit increased by 10.4% year over year to $614.3 million, and inside margin increased by 110 basis points to 41.7% [4]. - EBITDA increased by 9.1% year over year to $345.8 million, with EBITDA margin expanding by 20 basis points to 8.4% [5]. Expenses and Financial Position - Operating expenses rose by 8.7% to $609.5 million, which was lower than the estimated increase of 10.2% [5]. - As of the end of the quarter, the company had cash and cash equivalents of $305 million, long-term debt of $1.40 billion, and shareholders' equity of $3.16 billion [10]. Future Guidance - For fiscal 2025, the company expects inside same-store sales to increase by 3-5% and anticipates an inside margin of 41%. It forecasts same-store fuel gallons sold to remain flat, with EBITDA growth expected to be at least 8% [12].

Financial Data and Key Metrics Changes - Diluted EPS increased by 7% to $4.83 per share, with net income rising by 6% to $180 million and EBITDA growing by 9% to $346 million compared to the prior year [6][15] - Total revenue for the quarter reached $4.1 billion, a 5.9% increase from the previous year, driven by higher inside sales and fuel gallons sold [9][10] - Gross profit was $955 million, an increase of 8.8% from the prior year, with inside gross profit margin at 41.7%, up 110 basis points [12][15] Business Line Data and Key Metrics Changes - Inside same-store sales rose by 2.3%, with prepared food and dispensed beverage sales up 4.4% and grocery and general merchandise sales up 1.6% [7][8][10] - Prepared food and dispensed beverage sales increased by 8.7% to $405 million, while grocery and general merchandise sales rose by 7.2% to $1.07 billion [10][12] - Fuel same-store gallons sold increased by 0.7%, with a fuel margin of $0.407 per gallon [8][13] Market Data and Key Metrics Changes - The company outperformed its geographic region in fuel volume, with the Mid-Continent region down approximately 5% in the quarter [8] - Same-store sales growth in grocery and general merchandise was impacted by a strong prior year quarter and lottery-related traffic anomalies [36][37] Company Strategy and Development Direction - The company is focused on expanding its store base, raising its three-year store growth target to approximately 500 stores, accelerated by the Fikes acquisition [16][20] - Enhancements in operational efficiency are being pursued, with a continuous improvement team achieving reductions in same-store labor hours for nine consecutive quarters [22] - The company aims to balance fuel gallons with gross profit dollars while maintaining a strong value proposition in prepared foods [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the consumer base remains stable, with higher-income consumers showing no significant changes in purchasing behavior, while lower-income consumers are slightly adjusting their basket sizes [24][25] - The company expects continued inflation in cheese costs but is managing overall profitability effectively [26][27] - The outlook for the second quarter remains positive, with expectations for operating expenses to be within annual ranges despite one-time costs related to the Fikes transaction [19] Other Important Information - The Fikes acquisition has a gross purchase price of $1.145 billion, with expected synergies and a focus on integrating the acquired stores into the Casey's operational framework [17][18] - The company generated $181 million in free cash flow for the quarter, compared to $160 million in the prior year [15] Q&A Session Summary Question: Consumer health in light of recent trends - Management indicated that higher-income consumers are maintaining purchasing habits, while lower-income consumers are buying fewer items per visit [24][25] Question: Gross margin concerns regarding cheese costs - Management confirmed that about 25% of cheese requirements are hedged, and they are managing overall profitability rather than focusing solely on prepared food margins [26][27] Question: Continuous improvement initiatives - Management highlighted recent initiatives like digital production planning and inventory organization that have improved efficiency and reduced waste [30][32] Question: Prepared food performance across different markets - Management noted no significant differences in prepared food performance across geographic markets, with strong growth in lunch offerings [33] Question: Inside same-store sales growth - Management attributed softer grocery sales to cycling over a strong prior year and lottery-related traffic anomalies [35][36] Question: Private label performance - Management reported steady performance in private label sales, contributing positively to grocery margins [40][41] Question: Future M&A activity - Management stated they are always looking for acquisition opportunities but will be cautious about taking on additional leverage [42][43] Question: CapEx for Fikes acquisition - Management anticipates approximately $145 million in CapEx for renovations and retrofitting Fikes stores [44] Question: Fuel supply chain updates - Management confirmed progress in upstream fuel purchasing capabilities and the benefits of acquiring expertise through the Fikes transaction [57][58] Question: Cheese usage in prepared foods - Management indicated that cheese is the largest commodity used in prepared foods, with over 40 million pounds consumed in the last fiscal year [59] Question: Impact of Department of Labor overtime rule - Management expects minimal impact from the upcoming overtime rule, as most affected team members are already above the threshold [61]

For the quarter ended July 2024, Casey's General Stores (CASY) reported revenue of $4.1 billion, up 5.9% over the same period last year. EPS came in at $4.83, compared to $4.52 in the year-ago quarter. The reported revenue represents a surprise of -0.34% over the Zacks Consensus Estimate of $4.11 billion. With the consensus EPS estimate being $4.54, the EPS surprise was +6.39%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Casey's General Stores (CASY) came out with quarterly earnings of $4.83 per share, beating the Zacks Consensus Estimate of $4.54 per share. This compares to earnings of $4.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.39%. A quarter ago, it was expected that this convenience store chain would post earnings of $1.70 per share when it actually produced earnings of $2.34, delivering a surprise of 37.65%. Over the last fou ...

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, no par value per share CASY The NASDAQ Global Select Market FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34700 CASEY'S GENERAL STORES, INC. ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Casey's General Stores, Inc. One SE Convenience Blvd Ankeny, IA 50021 Casey's Announces First Quarter Results Ankeny, IA, September 4, 2024 - Casey's General Stores, Inc. ("Casey's" or the "Company") (Nasdaq: CASY) one of the leading convenience store chains in the United States, today announced financial results for the three months ended July 31, 2024. First Quarter Key Highlights • Diluted EPS of $4.83, up 7% from the same period a year ago. Net income was $180 million, ...