Casey's General Stores Inc Earnings
Casey's General Stores, Inc. (NASDAQ: CASY), a leading convenience store chain in the United States, demonstrated a strong start to the fiscal year 2026 with noteworthy growth across its core segments. The company reported financial results for the first quarter ending July 31, 2025, showcasing significant improvements in key financial metrics and strategic operations.
Financial Results Summary
In the first quarter, Casey's reported a significant increase in its earnings per share and net income compared to the same period a year ago. Here's a detailed breakdown of the company's key financial metrics:
| Metric | Q1 FY2026 | YoY Change |
|---|---|---|
| Diluted EPS | $5.77 | +19.5% |
| Net Income | $215.4M | +19.5% |
| EBITDA | $414.3M | +19.8% |
The company attributed this robust growth to a combination of higher inside and fuel gross profit, enhancing its overall profitability while managing increased operating expenses due to a larger store count.
Revenue Breakdown
Casey's General Stores achieved a notable sales increase, both inside the stores and from fuel sales. Below is the detailed revenue performance across its major segments:
| Segment | Revenue Increase | Key Contributors |
|---|---|---|
| Inside Store Sales | +14.2% | Strong prepared food and non-alcoholic beverage sales |
| Fuel Gallons Sold | +18.0% | Higher store count and positive same-store gallon growth |
Inside Store Performance
Inside sales saw a 14.2% growth compared to the prior year, driven by an increase in consumer traffic and strategic merchandising efforts. Key drivers included prepared food and dispensed beverages, notably whole pizzas and bakery items, alongside non-alcoholic beverages in the grocery and general merchandise category. The inside margin improved by approximately 20 basis points, reflecting a favorable product mix shift.
Fuel Segment Insights
Fuel sales also contributed positively, with an impressive 18.0% increase in gallons sold due to a combination of the expanded store footprint and improved same-store performance. The fuel margin sustained a healthy 41.0 cents per gallon, helping propel the total fuel gross profit by 18.8% from the prior year. Additionally, the company capitalized on selling renewable fuel credits, increasing its income from $6.7 million by $1.9 million compared to the last fiscal year.
Key Developments
During the first quarter, Casey's deepened its market presence by operating 221 more stores compared to the previous year. This expansion, while increasing operational expenses by around 10%, also significantly contributed to the company's revenue growth and customer reach.
In terms of liquidity, Casey's remained strong, maintaining approximately $1.4 billion in available liquidity, fortified by $458 million in cash and cash equivalents and $900 million in borrowing capacity.
Comments from Company Officers
Darren Rebelez, Chairman, President and CEO of Casey's, expressed optimism about the company's performance. He stated, "Casey's delivered an excellent first quarter highlighted by strong sales growth both inside and outside the store. Our inside same-store sales were driven by positive traffic growth due to our summer merchandising plan as well as our team's outstanding execution, demonstrating our ability to serve our guests efficiently at a high level."
Dividends and Share Repurchases
Casey's continued its shareholder-friendly initiatives with an active share repurchase program and consistent dividend payouts. During the quarter, the company repurchased roughly $31 million worth of shares, with $264 million remaining under the current authorization. In addition, at the September Board meeting, a quarterly dividend of $0.57 per share was approved, demonstrating the company’s commitment to returning value to shareholders.
Stock Forecast
Given Casey's strong financial performance and strategic expansion, the stock outlook for the company appears promising. Based on its current performance metrics, continued growth in inside sales and fuel revenues, and a positive EBITDA outlook, the stock price is likely to experience steady growth. High projections could reach around $260, capitalizing on increased store expansions and sustained profit margins. Conversely, a low forecast might hover near $230, considering potential economic headwinds or fluctuations in fuel prices.
Conclusion
Casey's General Stores, Inc. has effectively leveraged its expanding store network and robust merchandising strategies to achieve remarkable growth in its first quarter of fiscal 2026. With a strong balance sheet, an active expansion strategy, and a consistent return of capital to shareholders, Casey's is well-positioned to sustain its momentum and deliver value-driven results in the coming quarters. As the financial year unfolds, investors will watch how Casey's continues to navigate market conditions, further innovate within its operations, and realize its strategic goals.
