Financial Data and Key Metrics Changes - Fiscal year 2025 saw diluted earnings per share reach $14.64, a 9% increase from the prior year [9] - The company generated a record $547 million in net income and $1.2 billion in EBITDA, marking a 13% increase from the previous year [9] - Total inside sales grew by 10.9% during the year, with inside same-store sales up 2.6% [10] - Total operating expenses increased by 14.5% or $84 million in the fourth quarter, with approximately 12% attributed to unit growth [19] Business Line Data and Key Metrics Changes - Total prepared food and dispensed beverage sales grew by 10.3%, with same-store sales up 3.5% [10] - Total grocery and general merchandise sales increased by 11.2%, with same-store sales up 2.3% [10] - Fuel gross profit rose by 11%, with total fuel gallons sold up 13% [11] Market Data and Key Metrics Changes - Same-store fuel gallons sold increased by 0.1% with a fuel margin of 37.6¢ per gallon [17] - Retail fuel sales rose by $162 million in the fourth quarter, primarily due to a 17.8% increase in total gallons sold [19] Company Strategy and Development Direction - The company aims to open at least 80 stores in fiscal year 2026, contributing to a total of approximately 500 stores over a three-year strategic plan [24] - The strategic plan focuses on accelerating the food business, growing the number of units, and enhancing operational efficiency [27] - The company is committed to improving operating expense management and generating more free cash flow [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's strength and durability, indicating the ability to succeed in various economic climates [12] - The company expects EBITDA to increase between 10% to 12% in fiscal year 2026, with inside same-store sales projected to rise by 2% to 5% [23] - Management acknowledged the impact of external factors, including inflation and consumer behavior, on sales outlook [46][62] Other Important Information - The effective tax rate for the quarter was 23%, compared to 22.4% in the prior year [21] - The company plans to allocate approximately $125 million for share repurchases in fiscal year 2026 [23][88] Q&A Session Summary Question: Fuel margins performance and expectations - Management noted that fuel margins exceeded expectations due to effective pricing management and improved procurement capabilities [34] Question: Guidance and synergies from acquisitions - Management discussed the expected headwinds from acquisitions and the anticipated synergies, particularly in fuel pricing and overhead rationalization [36] Question: Inside sales performance and drivers - Management acknowledged that inside sales fell slightly short of expectations due to a softer start in the fiscal year and adverse weather conditions [54] Question: Impact of illicit vape on sales - Management confirmed that illicit vape has negatively impacted the vape category, but noted growth in nicotine alternatives [59] Question: Consumer behavior and promotional strategies - Management indicated that consumer traffic remains stable, with targeted promotions aimed at different income cohorts [61][63] Question: Operating expenses guidance - Management provided insights into the expected cadence of operating expenses, highlighting the impact of acquisitions on the first half of fiscal year 2026 [66] Question: Share buyback strategy - Management clarified that the planned share buybacks would be funded through operating cash flow, with no additional debt drawn [88]

Financial Data and Key Metrics Changes - Diluted EPS was $2.33 per share and net income was $87 million, both flat compared to the prior year [10] - EBITDA increased to $242 million, up 11% from the prior year [27] - Total revenue for the quarter was $3.9 billion, an increase of $574 million or 17.3% from the prior year [17] - Gross profit was $913 million, an increase of $126 million or 16% from the prior year [20] Business Line Data and Key Metrics Changes - Inside same-store sales increased by 3.7% for the quarter, or 8% on a two-year stack basis [12] - Prepared food and dispensed beverage sales rose by $48 million to $397 million, an increase of 13.7% [19] - Grocery and general merchandise sales increased by $138 million to $1 billion, an increase of 15.9% [19] - Same-store prepared food and dispensed beverage sales were up 4.7% or 12.6% on a two-year stack basis [12] Market Data and Key Metrics Changes - Fuel gallons sold were up over 20% [10] - Same-store gallons sold increased by 1.8% with a fuel margin of $0.364 per gallon [14] - The Mid-Continent region saw a decline of approximately 4% in fuel gallons sold, indicating market share growth [15] Company Strategy and Development Direction - The company is focused on accelerating the food business, with strong performance in prepared food innovation [36] - The integration of the Fikes transaction is a key strategic initiative, with expectations of achieving $45 million in synergies over three to four years [64] - The company aims to enhance operational efficiency, achieving reduced same-store labor hours for 11 consecutive quarters [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a potentially volatile environment due to enhanced capabilities and a resilient business model [49][50] - The company expects to achieve its target leverage ratio of approximately 2 times by the end of the fiscal year [28] - Management anticipates EBITDA growth of approximately 11% for the fiscal year [29] Other Important Information - Operating expenses increased by 17.8% or $101.3 million in the quarter, with 14% attributed to unit growth [24] - The effective tax rate for the quarter was 19.2%, down from 24.1% in the prior year [26] - The company maintained its quarterly dividend at $0.50 per share [29] Q&A Session Summary Question: How has Casey's adapted to a volatile environment? - Management highlighted improvements in procurement, data analytics, and guest insights, enhancing confidence in navigating uncertainties [47][48] Question: What are the timelines for improving margins at Fikes? - Management indicated that improvements in prepared food margins will take time, with kitchens being added to stores to enhance product offerings [53][56] Question: How is the integration of Fikes performing? - Early performance is satisfactory, with high-quality stores in attractive geographies, but the first quarter was impacted by winter weather [62] Question: What is the outlook for consumer spending? - Management noted some pressure on lower-income consumers but emphasized that the majority of their customer base remains stable [85] Question: How is the company positioned in a recessionary environment? - Management stated that Casey's has historically performed well during recessions due to its focus on basic daily needs and competitive pricing [75][76] Question: What is the status of the wings business rollout? - The wings business is still in early testing stages, with positive results so far, but no final decision has been made for broader rollout [122] Question: How much EBITDA did Fikes contribute this quarter? - Fikes was EBITDA dilutive this quarter due to integration costs, but it is expected to be modestly positive in the next quarter [113]