Company Overview

Casey's General Stores, Inc. operates a chain of convenience stores under the Casey's and Casey's General Store names across the United States. As a Fortune 500 company listed on NASDAQ (CASY), Casey's operates approximately 2,900 convenience stores. Founded over 50 years ago by Donald F. Lamberti in 1968, the company has grown to become the third-largest convenience store retailer and the fifth-largest pizza chain in the United States. The company is headquartered in Ankeny, IA.

Business Model and Operations

Casey's General Stores, Inc. is primarily engaged in the management and operation of convenience stores and gasoline stations. Its offerings include self-service gasoline, a wide selection of grocery items, and an array of freshly prepared food items. The company provides food, beverages, tobacco products, health and beauty aids, automotive products, and other non-food items.

The company's stores feature a comprehensive product offering, including:

- Prepared Foods: Pizza, donuts, breakfast items, and sandwiches.

- Beverages: Soft drinks, energy drinks, water, sports drinks, juices, coffee, tea, and dairy products.

- Additional Items: Beer, wine, spirits, snacks, candy, packaged bakery items, ice, ice cream, meals, appetizers, health and beauty aids, automotive products, electronic accessories, and housewares.

- Fuel Services: Motor fuel for sale on a self-service basis, including gasoline and diesel fuel.

- Other Services: ATM, lotto/lottery, prepaid cards, and car wash services.

Financial Performance

First Quarter FY 2026 Results (Q1 ending July 31, 2025)

Casey's delivered strong financial results for Q1 FY 2026:

- Key Financial Metrics:

- Diluted EPS reached $5.77 per share, representing a 19% increase.

- Net income was $215 million and EBITDA was $414 million, both up 20%.

- Revenue: US$4.57 billion (up 12% from 1Q 2025).

- Profit margin: 4.7% (up from 4.4% in 1Q 2025).

- Generated $262 million in free cash flow, up from $181 million in the prior year.

- Operational Performance:

- Inside same-store sales rose by 4.3%, with prepared food and dispensed beverage sales leading the way with a 5.6% increase.

- Fuel margins were strong at $0.41 per gallon, with same-store gallons sold up by 1.7%.

Annual Financial Performance (FY 2025)

- In FY 2025, Casey's General Stores' revenue was $15.94 billion, an increase of 7.25% compared to the previous year's $14.86 billion.

- Earnings were $546.52 million, an increase of 8.87%.

Market Position and Valuation

- Market Capitalization: $20.34 billion (as of September 24, 2025).

- Stock Performance: CASY reached its all-time high on September 17, 2025, with the price of $571.57 USD.

- Dividend Information:

- The last dividend per share was $0.57 USD.

- Dividend Yield (TTM)% is 0.38%.

- The Board voted to maintain the quarterly dividend of $0.57 per share.

Strategic Growth Initiatives

Store Expansion

The Company expects to open at least 80 stores in fiscal 2026, through a mix of M&A and new store construction. This is part of a three-year strategic plan aiming for approximately 500 new stores.

Acquisitions and Integration

Casey's continues to integrate recent acquisitions, including CEFCO stores. The CEFCO stores are currently underperforming compared to Casey's base business, with lower prepared food margins. The integration is ongoing, with significant synergies from remodeling expected to take over a year to realize.

Food Strategy and Operational Excellence

Growth is driven by store expansion, a focus on rural markets, and innovation in high-margin prepared foods. This strategy aligns with consumer trends and supports higher revenue and margins. Strong expansion and acquisitions in growing regions, along with innovative fresh food offerings, are expected to increase traffic, sales, and high-margin revenue streams.

Future Outlook

Fiscal Year 2026 Guidance:

- EBITDA expected to increase 10% to 12%.

- Inside same-store sales expected to increase 2% to 5% with an inside margin of approximately 41%.

- Same-store fuel gallons sold expected to be negative 1% to positive 1%.

- Total operating expenses expected to increase approximately 8% to 10%.

Capital Allocation:

- Purchase of property and equipment expected to be approximately $600 million.

- The company has approximately $264 million remaining on its existing share repurchase authorization.

Workforce

- As of September 23, 2025, the company has 49,270 employees.

Casey's General Stores represents a well-positioned player in the convenience store industry, with a strong focus on prepared foods, strategic geographic positioning in rural markets, and a track record of consistent growth through both organic expansion and acquisitions.