Core Insights - Casey's General Stores, Inc. (CASY) reported second-quarter fiscal 2026 results with earnings per share of $5.53, exceeding the Zacks Consensus Estimate of $4.92, marking a 14% increase from $4.85 in the prior-year quarter. However, total revenues of $4,506.1 million fell short of the estimate of $4,553 million, although this figure represents a 14.2% increase from $3,946.8 million in the year-ago period [3][10]. Sales Performance - Total inside sales increased by 13% year over year to $1.66 billion, with inside same-store sales rising 3.3%, compared to a 4% increase in the previous year. This growth was driven by strong performance in prepared food and dispensed beverages, including whole pizzas and hot sandwiches, as well as robust sales in non-alcoholic beverages [4][10]. - Fuel sales rose 11.3% year over year to $2.69 billion, with fuel gallons sold increasing by 16.8% to 906.7 million. The fuel margin improved slightly to 41.6 cents per gallon from 40.2 cents in the prior-year period [11]. Margin and Expense Analysis - Gross profit increased to $1.12 billion, up 17% year over year, with gross margin expanding by 60 basis points to 24.9%. Inside gross profit rose 13.5% year over year to $703.4 million, with an inside margin of 42.4%, up about 20 basis points from the prior-year period [5][6]. - Operating expenses increased by 16.7% to $711.6 million, primarily due to operating 236 additional stores compared to the previous year. Same-store employee expenses accounted for roughly 2% of the increase, driven by higher labor rates [7]. Segment Performance - Prepared Food & Dispensed Beverage sales rose 12% year over year to $467.8 million, with same-store sales increasing by 4.8%. The margin for this segment declined by 10 basis points to 58.6% [8]. - Grocery & General Merchandise sales increased by 13.4% to $1.19 billion, surpassing estimates, with same-store sales advancing by 2.7%. The margin for this segment expanded by 40 basis points to 36% [9]. Financial Overview - As of October 31, 2025, Casey's operated 2,921 stores, with cash and cash equivalents of $492 million, long-term debt of $2.35 billion, and shareholders' equity of $3.81 billion. The company repurchased approximately $31 million of shares during the quarter [12]. - A quarterly dividend of 57 cents per share was declared, payable on February 13, 2026, continuing the company's track record of dividend payments [13]. Future Outlook - For fiscal 2026, management expects EBITDA growth of 15-17%, an increase from the previously mentioned 10-12%. Total operating expenses are anticipated to rise by 8-10%, with plans to open 80 new stores [14][15].