Quick Read Casey’s General Stores (CASY) expanded fuel margins to 41.0 cents per gallon in Q3 FY2026, driving total fuel gross profit up 15.3% to $348.2 million, while its Rewards program surpassed 10 million members and powered inside same-store sales growth of 4.0% with margin expansion of 130 basis points to 42.2%. The company targets at least 80 new store openings in FY2026 and has delivered 26 consecutive years of dividend increases with the most recent raise at 14%. Moderating crude oil prices an ...

Core Insights - Casey's General Stores reported strong earnings and profitability for Q3, driven by growth in prepared foods and fuel profitability, leading to an increased EBITDA growth outlook for fiscal 2026 [3][5][21] Financial Performance - Total revenue reached $3.91 billion, a 0.3% increase, with diluted earnings per share at $3.49, up 50% year-over-year, and net income rising 49% to $130 million [2][5] - EBITDA totaled $309 million, reflecting a 27.5% year-over-year increase [2][5] - Gross profit was $1.01 billion, up 10.3%, with inside gross profit margin at 42.2%, an increase of 130 basis points [1][2] Sales and Margins - Inside same-store sales rose 4% (7.9% on a two-year stack), with prepared food and dispensed beverage sales increasing 4.3% (9.2% on a two-year stack) [1][5] - Same-store grocery and general merchandise sales increased 4% (7.4% on a two-year stack) with an average margin of 35.7% [6] Fuel Performance - Fuel margin exceeded $0.40 per gallon, with same-store gallons sold increasing 0.4% despite a decline in retail fuel sales due to lower prices [4][9] - The average retail fuel price was $2.72 per gallon, down from $2.85 a year earlier [9][11] Growth Initiatives - Casey's Rewards program surpassed 10 million members, and the rollout of chicken wings expanded to over 550 stores [5][16][19] - The company is on track to open 80 stores this year and aims for a total of 500 stores over the next three years [21][22] Capital Allocation and Liquidity - The company ended the quarter with $1.4 billion in liquidity and maintained a quarterly dividend of $0.57 per share, alongside $76 million in share repurchases [4][15] - Total operating expenses increased 4.1% year-over-year, influenced by unit growth and higher labor rates [12][13] Strategic Outlook - Management raised fiscal 2026 EBITDA growth guidance to 18%-20% and expects same-store sales to increase by 3.5%-4.5% [17][20] - The company is focusing on integration synergies from acquisitions, particularly in prepared foods, which are expected to build with store conversions [20]