Casey’s-Casey's Beats Estimates as Revenue Rises

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]