Casey’s(US:CASY)2025-12-10 13:30Company Overview - Casey's has a total enterprise value of approximately $21 billion and operates around 2,900 convenience stores across 19 states[6] - The company processes over 800 million guest transactions annually and employs roughly 50,000 team members[6] - Approximately 2/3 of Casey's stores are located in towns with populations of 20,000 or fewer, providing a stronger market position in rural areas[8,67,68] Strategic Advantages - Casey's Rewards program boasts over 9.5 million active members, driving higher transaction values and more frequent visits[8] - The company's strategic investments in digital platforms and food offerings, coupled with a reduced reliance on tobacco sales, have resulted in higher inside gross margins[21] - Casey's private label products exceed 300 SKUs, offering better quality and lower prices than national brands, resulting in larger margins[19,43] Growth and Financial Performance - Casey's aims to deliver top quintile EBITDA growth of 8-10% through FY2026[24,27,70] - The company plans to add approximately 500 additional stores through new builds and acquisitions by FY2026[27,29] - Casey's anticipates generating approximately $1.25 billion in free cash flow through FY2026[27] Operational Efficiency - Casey's is focused on enhancing operational efficiency through store simplification, streamlined kitchen operations, and inventory optimization[53] - From FY19 to FY25, Casey's OPEX CAGR was 10.6% compared to an EBITDA CAGR of 13.4%[69] - The company's Return on Invested Capital (ROIC) improved to 11.5% in FY25, up approximately 240 bps from FY19[69]