Casey's General Stores (NasdaqGS:CASY) Q1 2026 Earnings Call September 09, 2025 08:30 AM ET Company ParticipantsBrian Johnson - SVP Investor Relations and Business DevelopmentSteve Bramlage - CFODarren Rebelez - Chairman, President, and CEOConference Call ParticipantsBonnie Herzog - AnalystAnthony Bonadio - AnalystChuck Cerankosky - AnalystPooran Sharma - AnalystJacob Aiken-Phillips - AnalystChuck Grom - AnalystKelly Bania - AnalystBobby Griffin - AnalystCorey Tarlowe - AnalystMichael Montani - AnalystOpera ...

Company Overview - Casey's has a total enterprise value of approximately $21 billion[6] - The company operates around 2,900 convenience stores across 19 states[6] - Casey's handles over 800 million guest transactions annually[6] - The company employs roughly 50,000 team members[6] Competitive Advantages - Approximately 2/3 of Casey's stores are located in towns with populations of 20,000 or fewer, giving it a strong position in rural areas[8,68,69] - Casey's is the 5th largest pizza chain in the United States, with prepared food representing a significant portion of inside sales[8,68,69] - The company's rewards platform has over 9 million active members, driving higher transaction values and more frequent visits[8] Growth Strategy and Financial Performance - Casey's aims to deliver top quintile EBITDA growth of 8-10% through FY2026[24,27,71] - The company plans to add approximately 500 additional stores through new builds and acquisitions by FY2026[27,29] - Casey's anticipates free cash flow of around $1.25 billion through FY2026[27] Financial Improvements - From FY19 to FY25, Casey's OPEX CAGR was 10.6% compared to EBITDA CAGR of 13.4%[70] - Return on invested capital (ROIC) improved to 11.5% in FY25, up approximately 240 bps from FY19[70] - Free cash flow (FCF) generation in FY25 was $585 million, compared to $136 million in FY19[70]

US convenience store chain Casey's General Stores has posted a net income of $215.4m for the first quarter (Q1) of the fiscal year 2026 (FY26) which ended 31 July 2025 - 19.5% growth from the previous year. Diluted earnings per share (EPS) climbed to $5.77 and total revenue for the period stood at $4.5bn. Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 19.8% year-on-year (YoY), reaching $414.3m. Casey's chairman, president and CEO Darren Rebelez stated: "Casey's delivered an ...

Core Insights - The article reflects on the performance of five stocks selected for a sampler ten years ago, analyzing their returns against the S&P 500 and discussing lessons learned from their performance [1][2][3]. Group 1: Activision Blizzard (ATVI) - Activision Blizzard was selected for its strong gaming franchises, including Call of Duty and Candy Crush, and was acquired by Microsoft for $95 per share, resulting in a total return of 234.9% over ten years [9][11][12]. - The company successfully diversified its portfolio through acquisitions, maintaining a strong presence in the gaming industry [10][14]. - The stock significantly outperformed the S&P 500, which rose 118.4% during the same period, highlighting the effectiveness of its business strategy [12][14]. Group 2: Casey's General Stores (CASY) - Casey's General Stores has expanded from 1,888 stores to 2,658 over the past decade, focusing on pizza sales and enhancing customer experience [18][20]. - The stock price increased from $104.80 to $495.14, representing a 373% return, significantly outperforming the S&P 500's 223% return [22][23]. - The company shifted its focus from fuel sales to in-store offerings, with gross profit from inside sales nearly doubling that of fuel sales [21][22]. Group 3: FireEye (FEYE) - FireEye, initially a leader in cybersecurity, struggled with execution and ultimately merged with Mandiant, resulting in a 10-year return of only 16% [24][28][30]. - The company failed to adapt its business model effectively, leading to its underperformance compared to the S&P 500 [26][29]. - The acquisition by Alphabet did not yield significant returns for original investors, emphasizing the importance of strong execution in emerging industries [28][30]. Group 4: Mercado Libre (MELI) - Mercado Libre evolved from a marketplace to a comprehensive platform offering payments, logistics, and credit services, with a market cap now at $122 billion [30][31]. - The stock price surged from $109.94 to $2,384, achieving a 2,069% return, far exceeding the S&P 500's performance [33][34]. - The company's revenue and net income have increased dramatically, showcasing its successful expansion and leadership in Latin America [32][34]. Group 5: Middleby (MIDD) - Middleby, a provider of kitchen equipment, saw its stock price rise only 27% over the past decade, underperforming the market [37][38]. - The departure of its long-time CEO and macroeconomic challenges in the restaurant industry contributed to its lackluster performance [39][40]. - Despite ongoing acquisitions and growth, the company faced headwinds from high borrowing costs and reduced consumer spending in the residential market [40].

Core Insights - Casey's General Stores reported strong first-quarter results, with earnings of $5.77 per share, surpassing the Street estimate of $5.07 [1] - Quarterly revenue reached $4.56 billion, exceeding the consensus estimate of $4.47 billion [1] Financial Performance - Inside same-store sales increased by 4.3% year-over-year and 6.7% on a two-year stack basis, with an inside margin of 41.9% [5] - Total inside gross profit rose by 14.8% to $705.5 million compared to the prior year [5] - Same-store fuel gallons increased by 1.7% year-over-year, with a fuel margin of 41.0 cents per gallon [5] - Total fuel gross profit grew by 18.8% to $373.6 million compared to the prior year [5] - Same-store operating expenses, excluding credit card fees, were up 3%, positively impacted by a 1% reduction in same-store labor hours [5] Management Commentary - CEO Darren Rebelez highlighted strong sales growth both inside and outside the store, attributing it to effective summer merchandising and team execution [2][3] - The fuel team achieved same-store gallon growth while maintaining a healthy fuel margin, indicating operational efficiency [3]

ANKENY, Iowa--(BUSINESS WIRE)--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, 2025. First Quarter Key Highlights Diluted EPS of $5.77, up 19.5% from the same period a year ago. Net income was $215.4 million, up 19.5% from the prior year, and EBITDA1 was $414.3 million, up 19.8%, from the same period a year ago. Inside same-store sales. ...

Financial Performance - For the first quarter ended July 31, 2025, net income was $215.4 million, up 19.5% from $180.2 million in the prior year, with diluted EPS increasing to $5.77 from $4.83[5] - Total revenue for the quarter was $4.57 billion, up 11.5% from $4.10 billion in the same period last year[17] - Gross profit for the same period in 2025 was $1,112,446, compared to $955,256 in 2024, reflecting a gross margin of 24.4% in 2025 versus 23.3% in 2024[23] - EBITDA for the three months ended July 31, 2025, was $414,270, up from $345,782 in 2024, indicating a year-over-year increase of 19.9%[27] - Net income for the three months ended July 31, 2025, was $215,355, compared to $180,198 in 2024, marking a growth of 19.5%[27] Sales Performance - Inside same-store sales increased by 4.3% year-over-year, with total inside sales reaching $1.68 billion, a 14.2% increase compared to the previous year[7] - Same-store sales for prepared food and dispensed beverage in fiscal 2025 were 3.5%, with a margin of 58.2%[23] - Same-store fuel gallons sold increased by 1.7%, with total fuel gallons sold reaching 911.8 million, an 18.0% increase year-over-year[8] - Fuel gallons sold increased to 911,780 in the three months ended July 31, 2025, compared to 772,536 in 2024, representing a growth of 18.0%[23] Expenses and Liquidity - Operating expenses for the quarter were $698.2 million, a 14.6% increase from $609.5 million in the prior year, primarily due to operating 221 additional stores[9] - Cash paid for interest in the three months ended July 31, 2025, was $26,896, significantly higher than $11,845 in 2024[22] - The company had approximately $1.4 billion in available liquidity, including $458 million in cash and cash equivalents[12] Strategic Initiatives - The company expects EBITDA to increase by 10% to 12% for fiscal 2026, with inside same-store sales projected to rise by 2% to 5%[15] - The company plans to open at least 80 new stores in fiscal 2026, contributing to a total of approximately 500 stores over a three-year strategic plan[15] - The company plans to continue evaluating acquisition targets and assessing performance as part of its strategic initiatives[25] Shareholder Returns - During the quarter, the company repurchased approximately $31 million of shares, with $264 million remaining under its share repurchase authorization[13] - The board approved a quarterly dividend of $0.57 per share, payable on November 14, 2025[14] Forward-Looking Statements - Forward-looking statements indicate potential growth opportunities and risks related to supply chain and geopolitical factors[28]

Store Operations - As of July 31, 2025, Casey's operates a total of 2,895 stores, with approximately 71% located in areas with populations of fewer than 20,000 persons[52] - The acquisition of Fikes added 198 stores, contributing $522,334 in additional revenue for the first quarter of fiscal 2026, resulting in a total revenue increase of $469,369 (11.5%) compared to the prior year[66] - Operating expenses increased by $88,702 (14.6%) to $698,176, with approximately 10% of the increase attributed to operating 221 more stores compared to the prior year[70] Sales Performance - Same-store sales for prepared food and dispensed beverages increased by 5.6%, while grocery and general merchandise sales rose by 3.8% during the quarter[63] - Fuel revenue increased by $178,017 (7.0%) due to an 18.0% increase in gallons sold, totaling 911,780 gallons, despite a 9.4% decrease in average retail price per gallon[66] - Same-store fuel gallons sold increased by 1.7% during the quarter, reflecting a positive trend in fuel sales[63] Financial Performance - Net income for the first quarter of fiscal 2026 rose by $35,157 (19.5%) to $215,355, driven by higher profitability in both store operations and fuel sales[73] - For the three months ended July 31, 2025, EBITDA increased by 19.8% to $414,270 compared to $345,782 in the same period last year, driven by higher profitability in-store and in fuel[76] - The company reported a revenue less cost of goods sold (exclusive of depreciation and amortization) of 24.4% for the first quarter of fiscal 2026, compared to 23.3% for the same period in the prior year[68] Cash Flow and Liquidity - Net cash provided by operating activities rose to $372,417 for the three months ended July 31, 2025, an increase of $91,063 from $281,354 in the prior year[80] - The company's current assets to current liabilities ratio improved to 1.03 as of July 31, 2025, up from 0.84 a year earlier, primarily due to an increase in cash[78] - Cash flow from operations was positively impacted by improved revenue less cost of goods sold of $157,190, despite an increase in operating expenses of $88,702[80] Investment and Financing Activities - Cash used in investing activities decreased by $9,947, with proceeds from asset sales increasing by $10,811 compared to the prior year[81] - Cash used in financing activities increased by $68,105, mainly due to a $31,251 repurchase of common stock and a $20,963 increase in tax withholding payments on employee awards[82] - The company plans to meet future capital needs through cash generated from operations, the Revolving Facility, and additional long-term debt as necessary[84] Debt and Interest Rates - As of July 31, 2025, the company had long-term debt totaling $2,373,058, with significant obligations including $325,000 in 2.85% Senior notes due August 2030[84] - An immediate 100-basis-point move in interest rates would have an approximate annualized impact of $10.2 million on interest expense[92] Electric Vehicle Strategy - Casey's has implemented an electric vehicle strategy, with 230 charging stations at 47 stores across 13 states as of July 31, 2025[60] Tax Rate - The effective tax rate decreased to 22.7% in the first quarter of fiscal 2026 from 24.1% in the same period of fiscal 2025, primarily due to increased excess tax benefits from share-based awards[72]

Let's get to the first mad dash of the week. Of course, we also have an opening bell uh about seven minutes from now. What do you got.>> Well, you know, David, I've been struggling with this idea of stocks. Which ones go up. Something it's old school.Uh comes in after the Mets Phillies in terms of the hierarchy. And David, there's one that reports this very evening. It's called Casey's General.2900 stores all over the country. 2900 of 29. David, they have a breakfast pizza that you just you wouldn't believe ...

Core Insights - Casey's General Stores, Inc. is set to release its first-quarter earnings results on September 8, with expected earnings of $5.06 per share, an increase from $4.83 per share in the same period last year [1] - The company is projected to report quarterly revenue of $4.48 billion, up from $4.1 billion a year earlier [1][2] Analyst Ratings - Keybanc analyst Bradley Thomas maintained an Overweight rating and raised the price target from $550 to $575 [9] - Goldman Sachs analyst Bonnie Herzog maintained a Neutral rating and increased the price target from $385 to $450 [9] - BMO Capital analyst Kelly Bania maintained a Market Perform rating and boosted the price target from $450 to $515 [9] - Wells Fargo analyst Anthony Bonadio maintained an Overweight rating and raised the price target from $460 to $540 [9]