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Yahoo
7 hours ago
- Business
- Yahoo
Casey's Tops Estimates, Boosts Dividend
Casey's General Stores posted 11% revenue and 12% earnings-per-share growth in the quarter, surpassing Wall Street estimates. The company's results were aided by the acquisition of Fikes Wholesale, but Casey's managed to post inside same-store sales growth despite a tough operating environment. Casey's boosted its quarterly dividend for the 26th consecutive year and provided an initial forecast for growth in its new fiscal year. 10 stocks we like better than Casey's General Stores › Here's our initial take on Casey's General Stores' (NASDAQ: CASY) financial report. Metric Q4 FY24 Q4 FY25 Change vs. Expectations Revenue $3.60 billion $3.99 billion 11% Beat Earnings per share $2.34 $2.63 12% Beat Inside same-store sales +5.6% +1.7% -390 bp n/a Gross margin 41.2% 41.2% n/c n/a Convenience store powerhouse Casey's General Stores capped off a strong fiscal 2025, reporting double-digit quarterly revenue and earnings growth that topped expectations. The company is holding up better than a lot of retailers in a tough environment, with growth being driven by strong results from its bakery and hot sandwich offerings and from nonalcoholic beverages. Inside same-store sales grew by just 1.7% in the quarter, but CEO Darren Rebelez said that the full-year 2.6% growth "outperformed the industry." Casey's is also doing a good job of keeping a handle on costs, reducing same-store labor hours for the 12th consecutive quarter. Overall inside margin held steady year over year, with a slight uptick in grocery margin offset by a slight decrease in prepared food margin. This was a year of growth for Casey's. The company grew its store count from 2,658 to 2,904 over the past year, including about 35 new builds, as well as through its $1.1 billion acquisition of Fikes Wholesale, Casey's largest deal to date. Casey's continues to return more cash to shareholders. The company raised its quarterly dividend by 14% to $0.57 per share, marking the 26th consecutive annual increase. Investors seemed to like what Casey's was serving. The company's stock was up more than 7% immediately following the earnings release but ahead of Tuesday morning's planned call with investors. This is the end of Casey's fiscal year, and the company provided its first outlook for what it expects in the 12 months ahead. Casey's is forecasting that inside same-store sales will grow by 2% to 5% in fiscal 2026 and that EBITDA will grow by 10% to 12%. Casey's expects to continue to grow, forecasting it will open at least 80 stores via a combination of new construction and acquisitions, continuing on its three-year plan to expand by about 500 stores. This is a company that has been able to successfully apply its winning formula to new locations through both organic growth and M&A. It is a tough market for retail right now, but Casey's remains a standout. Full earnings report Investor relations page Before you buy stock in Casey's General Stores, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Casey's General Stores wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Casey's General Stores. The Motley Fool has a disclosure policy. Casey's Tops Estimates, Boosts Dividend was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
8 hours ago
- Business
- Yahoo
Casey's Announces Fourth Quarter and Fiscal Year Results
ANKENY, Iowa, June 09, 2025--(BUSINESS WIRE)--Casey's General Stores, Inc., ("Casey's" or the "Company") (Nasdaq symbol CASY) one of the leading convenience store chains in the United States, today announced financial results for the three months and year ended April 30, 2025. Fourth Quarter 2025 Key Highlights1 Diluted EPS of $2.63, up 12.4% from the same period a year ago. Net income was $98.3 million, up 13.0%, and EBITDA2 was $263.0 million, up 20.1%, from the same period a year ago. Inside same-store sales up 1.7% compared to the prior year, and 7.4% on a two-year stack basis, with an inside margin of 41.2%. Total inside gross profit increased 12.5% to $582.4 million compared to the prior year. Fuel same-store gallons were up 0.1% compared to the prior year with a fuel margin of 37.6 cents per gallon. Total fuel gross profit increased 21.4% to $307.8 million compared to the prior year. In June, Casey's increased the quarterly dividend 14% to $0.57 per share, marking the 26th consecutive annual increase. Fiscal Year 2025 Key Highlights Diluted EPS of $14.64 up 9.0% over the prior year. Net income was $546.5 million, up 8.9%, and EBITDA was $1.2 billion, up 13.3%, from the prior year. The Company built or acquired 270 stores in the fiscal year, the most in the Company's history. This included the Fikes Wholesale acquisition and its 198 CEFCO convenience stores. Casey's Rewards grew to over 9 million members by year-end. The balance sheet remains strong, finishing the year with a debt-to-EBITDA ratio3 of 1.9x. "Casey's delivered another record fiscal year as our team continued to execute on our three-year strategic plan, reaching $546.5 million of net income and $1.2 billion in EBITDA," said Darren Rebelez, President and CEO. "Inside same-store sales outperformed the industry, up 2.6%, or 7.1% on a two-year stack basis, led by strong performance in hot sandwiches and bakery as well as alcoholic and non-alcoholic beverages. Our fuel team grew market share and produced a healthy margin, as fuel gross profit increased 10.7% from the prior year. The operations team performed exceptionally well during the year, driving strong performance, integrating the most new units in Casey's history, while reducing same-store labor hours for the twelfth consecutive quarter." Earnings Three Months Ended April 30, Twelve Months Ended April 30, 2025 2024 2025 2024 Net income (in thousands) $ 98,307 $ 87,020 $ 546,520 $ 501,972 Diluted earnings per share $ 2.63 $ 2.34 $ 14.64 $ 13.43 EBITDA (in thousands) $ 263,017 $ 219,026 $ 1,200,047 $ 1,059,398 Fourth quarter net income, diluted EPS, and EBITDA were up versus the same period the prior year primarily due to higher inside and fuel gross profit partially offset by higher operating expense due to operating 246 additional stores. 1 During the prior year's fourth quarter Casey's had one additional operating day due to the leap year. This unfavorably impacted same-store and total results for the quarter by approximately 100 basis points; the full year impact was approximately 25 basis points. 2 EBITDA is reconciled to net income below. 3 As calculated under the covenants in the Company's credit facilities Inside Three Months Ended April 30, Twelve Months Ended April 30, 2025 2024 2025 2024 Inside sales (in thousands) $ 1,413,593 $ 1,257,375 $ 5,755,649 $ 5,188,994 Inside same-store sales 1.7 % 5.6 % 2.6 % 4.4 % Grocery and general merchandise same-store sales 1.8 % 4.3 % 2.3 % 3.5 % Prepared food and dispensed beverage same-store sales 1.5 % 8.8 % 3.5 % 6.8 % Inside gross profit (in thousands) $ 582,396 $ 517,613 $ 2,389,448 $ 2,128,822 Inside margin 41.2 % 41.2 % 41.5 % 41.0 % Grocery and general merchandise margin 34.8 % 34.4 % 35.0 % 34.1 % Prepared food and dispensed beverage margin 57.8 % 58.1 % 58.2 % 58.7 % For the quarter, total inside sales were up 12.4% for the quarter and total inside gross profit was up 12.5%. Inside same-store sales were up 1.7%, or 7.4% on a two-year stack basis, driven by strong performance in bakery and hot and cold food in the prepared food and dispensed beverage category as well as non-alcoholic beverages in the grocery and general merchandise category. Inside margin was flat compared to the same period in the prior year. Fuel4 Three Months Ended April 30, Twelve Months Ended April 30, 2025 2024 2025 2024 Fuel gallons sold (in thousands) 818,641 694,989 3,196,852 2,828,669 Same-store gallons sold 0.1 % 0.9 % 0.1 % 0.1 % Fuel gross profit (in thousands) $ 307,836 $ 253,612 $ 1,236,694 $ 1,116,671 Fuel margin (cents per gallon, excluding credit card fees) 37.6 ¢ 36.5 ¢ 38.7 ¢ 39.5 ¢ For the quarter, total fuel gallons sold increased 17.8% compared to the prior year primarily due to operating more stores, while same-store gallons sold were up 0.1% versus the prior year. Fuel gross profit was up 21.4% versus the prior year. The Company sold $4.3 million in renewable fuel credits (RINs) in the fourth quarter, while the company sold $1.0 million RINs in the same period last year. Operating Expenses Three Months Ended April 30, Twelve Months Ended April 30, 2025 2024 2025 2024 Operating expenses (in thousands) $ 663,003 $ 579,047 $ 2,552,356 $ 2,288,513 Credit card fees (in thousands) $ 63,759 $ 53,539 $ 251,077 $ 229,418 Same-store operating expense excluding credit card fees 1.9 % 2.6 % 1.7 % 2.7 % Total operating expenses increased 14.5% for the fourth quarter. Operating 246 more stores than the prior year accounted for approximately 12% of the increase, including one-time deal and integration costs of approximately $4 million from the Fikes acquisition. Insurance expense contributed approximately 3% of the increase. Same-store employee expense was approximately flat, as the increases in wage rates were substantially offset by a reduction in same-store labor hours. 4 Fuel category does not include wholesale fuel nor terminal activity, which is included in Other. Expansion Store Count April 30, 2024 2,658 New store construction 35 Acquisitions 235 Acquisitions not opened (1 ) Prior acquisitions opened 1 Closed (24 ) April 30, 2025 2,904 Liquidity At April 30, 2025, the Company had approximately $1.2 billion in available liquidity, consisting of approximately $327 million in cash and cash equivalents on hand and approximately $900 million in undrawn borrowing capacity on existing lines of credit. Share Repurchase During the fourth quarter, the Company did not repurchase any shares. The Company has approximately $295 million remaining under its existing share repurchase authorization. Dividend At its June meeting, the Board of Directors voted to increase the quarterly dividend by 14% to $0.57 per share, which is the 26th consecutive year increasing the dividend. The dividend is payable August 15, 2025, to shareholders of record on August 1, 2025. Fiscal 2026 Outlook Casey's expects the following performance during fiscal 2026. The Company expects EBITDA to increase 10% to 12%. The Company expects inside same-store sales to increase 2% to 5% and inside margin of approximately 41%. The Company expects same-store fuel gallons sold to be negative 1% to positive 1%. Total operating expenses are expected to increase approximately 8% to 10%. The Company expects to open at least 80 stores in fiscal 2026, through a mix of M&A and new store construction, bringing the three-year strategic plan period total to approximately 500 stores. Net interest expense is expected to be approximately $110 million. Depreciation and amortization is expected to be approximately $450 million and the purchase of property and equipment is expected to be approximately $600 million. The tax rate is expected to be approximately 24% to 26% for the year. Casey's General Stores, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Amounts in thousands, except share and per share amounts) (Unaudited) Three Months Ended April 30, Twelve Months Ended April 30, 2025 2024 2025 2024 Total revenue $ 3,992,758 $ 3,600,015 $ 15,940,899 $ 14,862,913 Cost of goods sold (exclusive of depreciation and amortization, shown separately below) 3,066,738 2,801,942 12,188,496 11,515,002 Operating expenses 663,003 579,047 2,552,356 2,288,513 Depreciation and amortization 107,443 92,344 403,647 349,797 Interest, net 27,916 14,494 83,951 53,441 Income before income taxes 127,658 112,188 712,449 656,160 Federal and state income taxes 29,351 25,168 165,929 154,188 Net income $ 98,307 $ 87,020 $ 546,520 $ 501,972 Net income per common share Basic $ 2.65 $ 2.35 $ 14.72 $ 13.51 Diluted $ 2.63 $ 2.34 $ 14.64 $ 13.43 Basic weighted average shares 37,126,996 37,025,986 37,116,152 37,164,022 Plus effect of stock compensation 263,564 233,993 226,860 206,284 Diluted weighted average shares 37,390,560 37,259,979 37,343,012 37,370,306 Casey's General Stores, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Dollars in thousands) (Unaudited) April 30, 2025 April 30, 2024 Assets Current assets Cash and cash equivalents $ 326,662 $ 206,482 Receivables 180,746 151,793 Inventories 480,034 428,722 Prepaid and other current assets 24,641 25,791 Income taxes receivable 770 17,066 Total current assets 1,012,853 829,854 Operating lease right-of-use assets, net 417,046 115,819 Other assets, net 120,082 79,740 Goodwill 1,244,893 652,663 Property and equipment, net of accumulated depreciation of $3,122,203 at April 30, 2025 and $2,883,925 at April 30, 2024 5,413,244 4,669,357 Total assets $ 8,208,118 $ 6,347,433 Liabilities and Shareholders' Equity Current liabilities Current maturities of long-term debt and finance lease obligations $ 94,925 $ 53,181 Accounts payable 620,447 569,527 Accrued expenses and current portion of operating lease liabilities 386,321 330,758 Total current liabilities 1,101,693 953,466 Long-term debt and finance lease obligations, net of current maturities 2,413,620 1,582,758 Deferred income taxes 646,905 596,850 Operating lease liabilities, net of current portion 434,707 111,100 Insurance accruals, net of current portion 33,143 30,046 Other long-term liabilities 69,380 57,832 Total liabilities 4,699,448 3,332,052 Total shareholders' equity 3,508,670 3,015,381 Total liabilities and shareholders' equity $ 8,208,118 $ 6,347,433 Casey's General Stores, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited) Twelve months ended April 30, 2025 2024 Cash flows from operating activities: Net income $ 546,520 $ 501,972 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 403,647 349,797 Amortization of debt related costs 2,312 1,111 Change in excess replacement cost over LIFO inventory valuation 11,530 12,499 Share-based compensation 47,732 41,379 Loss on disposal of assets and impairment charges 12,401 6,414 Deferred income taxes 59,958 53,252 Changes in assets and liabilities: Receivables (1,297 ) (31,246 ) Inventories (7,756 ) (51,785 ) Prepaid expenses 3,658 (3,684 ) Accounts payable (20,782 ) (8,731 ) Accrued expenses 21,525 14,387 Income taxes 15,460 5,112 Other, net (4,054 ) 2,476 Net cash provided by operating activities 1,090,854 892,953 Cash flows from investing activities: Purchase of property and equipment (506,224 ) (522,004 ) Payments for acquisitions of businesses, net of cash acquired (1,239,249 ) (330,032 ) Proceeds from sales of property and equipment 18,805 26,680 Net cash used in investing activities (1,726,668 ) (825,356 ) Cash flows from financing activities: Proceeds from long-term debt 1,100,000 — Repayments of long-term debt (239,492 ) (53,656 ) Payments of debt related costs (5,891 ) — Payments of cash dividends (72,309 ) (62,918 ) Repurchase of common stock and payment of related excise taxes (734 ) (104,898 ) Tax withholdings on employee share-based awards (25,580 ) (18,512 ) Net cash provided by (used in) financing activities 755,994 (239,984 ) Net increase (decrease) in cash and cash equivalents 120,180 (172,387 ) Cash and cash equivalents at beginning of the period 206,482 378,869 Cash and cash equivalents at end of the period $ 326,662 $ 206,482 SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION Twelve months ended April 30, 2025 2024 Cash paid during the period for: Interest, net of amount capitalized $ 86,598 $ 63,449 Income taxes, net 89,771 105,000 Noncash investing and financing activities: Purchased property and equipment in accounts payable 46,427 45,617 Summary by Category (Amounts in thousands) Three months ended April 30, 2025 Prepared Food & Dispensed Beverage Grocery & General Merchandise Fuel Other Total Revenue $ 391,655 $ 1,021,938 $ 2,438,937 $ 140,228 $ 3,992,758 Gross profit $ 226,406 $ 355,990 $ 307,836 $ 35,788 $ 926,020 57.8 % 34.8 % 12.6 % 25.5 % 23.2 % Fuel gallons sold 818,641 Three months ended April 30, 2024 Revenue $ 356,895 $ 900,480 $ 2,276,586 $ 66,054 $ 3,600,015 Gross profit $ 207,443 $ 310,170 $ 253,612 $ 26,848 $ 798,073 58.1 % 34.4 % 11.1 % 40.6 % 22.2 % Fuel gallons sold 694,989 Summary by Category (Amounts in thousands) Twelve months ended April 30, 2025 Prepared Food & Dispensed Beverage Grocery & General Merchandise Fuel Other Total Revenue $ 1,611,762 $ 4,143,887 $ 9,776,033 $ 409,217 $ 15,940,899 Gross profit $ 937,440 $ 1,452,008 $ 1,236,694 $ 126,261 $ 3,752,403 58.2 % 35.0 % 12.7 % 30.9 % 23.5 % Fuel gallons sold 3,196,852 Twelve months ended April 30, 2024 Revenue $ 1,461,600 $ 3,727,394 $ 9,402,071 $ 271,848 $ 14,862,913 Gross profit $ 858,295 $ 1,270,527 $ 1,116,671 $ 102,418 $ 3,347,911 58.7 % 34.1 % 11.9 % 37.7 % 22.5 % Fuel gallons sold 2,828,669 Prepared Food & Dispensed Beverage Prepared Food & Dispensed Beverage Same-store Sales Margin Q1 Q2 Q3 Q4 Fiscal Year Q1 Q2 Q3 Q4 Fiscal Year F2025 4.4 % 5.2 % 4.7 % 1.5 % 3.5 % F2025 58.3 % 58.7 % 57.8 % 57.8 % 58.2 % F2024 5.9 6.1 7.5 8.8 6.8 F2024 58.2 59.0 59.6 58.1 58.7 F2023 8.4 10.5 5.0 4.9 7.1 F2023 55.6 56.7 57.3 56.8 56.6 Grocery & General Merchandise Grocery & General Merchandise Same-store Sales Margin Q1 Q2 Q3 Q4 Fiscal Year Q1 Q2 Q3 Q4 Fiscal Year F2025 1.6 % 3.6 % 3.3 % 1.8 % 2.3 % F2025 35.4 % 35.6 % 34.2 % 34.8 % 35.0 % F2024 5.2 1.7 2.8 4.3 3.5 F2024 34.1 34.0 33.9 34.4 34.1 F2023 5.5 6.9 5.8 7.1 6.3 F2023 33.9 33.3 34.0 33.0 33.6 Fuel Gallons Fuel Margin Same-store Sales (Cents per gallon, excluding credit card fees) Q1 Q2 Q3 Q4 Fiscal Year Q1 Q2 Q3 Q4 Fiscal Year F2025 0.7 % (0.6 )% 1.8 % 0.1 % 0.1 % F2025 40.7 ¢ 40.2 ¢ 36.4 ¢ 37.6 ¢ 38.7 ¢ F2024 0.4 — (0.4 ) 0.9 0.1 F2024 41.6 42.3 37.3 36.5 39.5 F2023 (2.3 ) 0.3 (0.5 ) — (0.8 ) F2023 44.7 40.5 40.7 34.6 40.2 RECONCILIATION OF NET INCOME TO EBITDA We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. EBITDA is not considered to be a GAAP measure, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. This measure has limitations as an analytical tool, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. We believe EBITDA is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities, and it is regularly used by the Company for internal purposes including our capital budgeting process, evaluating acquisition targets, assessing performance, and awarding incentive compensation. Because non-GAAP financial measures are not standardized, EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of this non-GAAP financial measure with those used by other companies. The following table contains a reconciliation of net income to EBITDA for the three and twelve months ended April 30, 2025 and 2024: (In thousands) Three Months Ended April 30, Twelve Months Ended April 30, 2025 2024 2025 2024 Net income $ 98,307 $ 87,020 $ 546,520 $ 501,972 Interest, net 27,916 14,494 83,951 53,441 Federal and state income taxes 29,351 25,168 165,929 154,188 Depreciation and amortization 107,443 92,344 403,647 349,797 EBITDA $ 263,017 $ 219,026 $ 1,200,047 $ 1,059,398 NOTES: Gross Profit is defined as revenue less cost of goods sold (exclusive of depreciation and amortization) Inside is defined as the combination of Grocery and General Merchandise and Prepared Food and Dispensed Beverage This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, performance at our stores. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any results expressed or implied by these forward-looking statements, including but not limited to the execution of our strategic plan, the integration and financial performance of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges and disruptions, the impact and duration of the conflict in Ukraine or other geopolitical disruptions, as well as other risks, uncertainties and factors which are described in the Company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website. Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey's disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events, or otherwise. Corporate information is available at this website: Earnings will be reported during a conference call on June 10, 2025. The call will be broadcast live over the Internet at 7:30 a.m. CDT. To access the call, go to the Events and Presentations section of our website at No access code is required. A webcast replay of the call will remain available in an archived format on the Events and Presentations section of our website at for one year after the call. CASY-IR View source version on Contacts Investor Relations Contact:Brian Johnson (515) 446-6587 Media Relations Contact: Katie Petru (515) 446-6772
Business Wire
8 hours ago
- Business
- Business Wire
Casey's Announces Fourth Quarter and Fiscal Year Results
ANKENY, Iowa--(BUSINESS WIRE)--Casey's General Stores, Inc., ("Casey's" or the "Company") (Nasdaq symbol CASY) one of the leading convenience store chains in the United States, today announced financial results for the three months and year ended April 30, 2025. Fourth Quarter 2025 Key Highlights 1 Diluted EPS of $2.63, up 12.4% from the same period a year ago. Net income was $98.3 million, up 13.0%, and EBITDA 2 was $263.0 million, up 20.1%, from the same period a year ago. Inside same-store sales up 1.7% compared to the prior year, and 7.4% on a two-year stack basis, with an inside margin of 41.2%. Total inside gross profit increased 12.5% to $582.4 million compared to the prior year. Fuel same-store gallons were up 0.1% compared to the prior year with a fuel margin of 37.6 cents per gallon. Total fuel gross profit increased 21.4% to $307.8 million compared to the prior year. In June, Casey's increased the quarterly dividend 14% to $0.57 per share, marking the 26th consecutive annual increase. Fiscal Year 2025 Key Highlights Diluted EPS of $14.64 up 9.0% over the prior year. Net income was $546.5 million, up 8.9%, and EBITDA was $1.2 billion, up 13.3%, from the prior year. The Company built or acquired 270 stores in the fiscal year, the most in the Company's history. This included the Fikes Wholesale acquisition and its 198 CEFCO convenience stores. Casey's Rewards grew to over 9 million members by year-end. The balance sheet remains strong, finishing the year with a debt-to-EBITDA ratio 3 of 1.9x. 'Casey's delivered another record fiscal year as our team continued to execute on our three-year strategic plan, reaching $546.5 million of net income and $1.2 billion in EBITDA," said Darren Rebelez, President and CEO. 'Inside same-store sales outperformed the industry, up 2.6%, or 7.1% on a two-year stack basis, led by strong performance in hot sandwiches and bakery as well as alcoholic and non-alcoholic beverages. Our fuel team grew market share and produced a healthy margin, as fuel gross profit increased 10.7% from the prior year. The operations team performed exceptionally well during the year, driving strong performance, integrating the most new units in Casey's history, while reducing same-store labor hours for the twelfth consecutive quarter.' Fourth quarter net income, diluted EPS, and EBITDA were up versus the same period the prior year primarily due to higher inside and fuel gross profit partially offset by higher operating expense due to operating 246 additional stores. 1 During the prior year's fourth quarter Casey's had one additional operating day due to the leap year. This unfavorably impacted same-store and total results for the quarter by approximately 100 basis points; the full year impact was approximately 25 basis points. 2 EBITDA is reconciled to net income below. 3 As calculated under the covenants in the Company's credit facilities Expand Inside Three Months Ended April 30, Twelve Months Ended April 30, 2025 2024 2025 2024 Inside sales (in thousands) $ 1,413,593 $ 1,257,375 $ 5,755,649 $ 5,188,994 Inside same-store sales 1.7 % 5.6 % 2.6 % 4.4 % Grocery and general merchandise same-store sales 1.8 % 4.3 % 2.3 % 3.5 % Prepared food and dispensed beverage same-store sales 1.5 % 8.8 % 3.5 % 6.8 % Inside gross profit (in thousands) $ 582,396 $ 517,613 $ 2,389,448 $ 2,128,822 Inside margin 41.2 % 41.2 % 41.5 % 41.0 % Grocery and general merchandise margin 34.8 % 34.4 % 35.0 % 34.1 % Prepared food and dispensed beverage margin 57.8 % 58.1 % 58.2 % 58.7 % Expand For the quarter, total inside sales were up 12.4% for the quarter and total inside gross profit was up 12.5%. Inside same-store sales were up 1.7%, or 7.4% on a two-year stack basis, driven by strong performance in bakery and hot and cold food in the prepared food and dispensed beverage category as well as non-alcoholic beverages in the grocery and general merchandise category. Inside margin was flat compared to the same period in the prior year. For the quarter, total fuel gallons sold increased 17.8% compared to the prior year primarily due to operating more stores, while same-store gallons sold were up 0.1% versus the prior year. Fuel gross profit was up 21.4% versus the prior year. The Company sold $4.3 million in renewable fuel credits (RINs) in the fourth quarter, while the company sold $1.0 million RINs in the same period last year. Total operating expenses increased 14.5% for the fourth quarter. Operating 246 more stores than the prior year accounted for approximately 12% of the increase, including one-time deal and integration costs of approximately $4 million from the Fikes acquisition. Insurance expense contributed approximately 3% of the increase. Same-store employee expense was approximately flat, as the increases in wage rates were substantially offset by a reduction in same-store labor hours. 4 Fuel category does not include wholesale fuel nor terminal activity, which is included in Other. Expand Expansion Store Count April 30, 2024 2,658 New store construction 35 Acquisitions 235 Acquisitions not opened (1 ) Prior acquisitions opened 1 Closed (24 ) April 30, 2025 2,904 Expand Liquidity At April 30, 2025, the Company had approximately $1.2 billion in available liquidity, consisting of approximately $327 million in cash and cash equivalents on hand and approximately $900 million in undrawn borrowing capacity on existing lines of credit. Share Repurchase During the fourth quarter, the Company did not repurchase any shares. The Company has approximately $295 million remaining under its existing share repurchase authorization. Dividend At its June meeting, the Board of Directors voted to increase the quarterly dividend by 14% to $0.57 per share, which is the 26th consecutive year increasing the dividend. The dividend is payable August 15, 2025, to shareholders of record on August 1, 2025. Fiscal 2026 Outlook Casey's expects the following performance during fiscal 2026. The Company expects EBITDA to increase 10% to 12%. The Company expects inside same-store sales to increase 2% to 5% and inside margin of approximately 41%. The Company expects same-store fuel gallons sold to be negative 1% to positive 1%. Total operating expenses are expected to increase approximately 8% to 10%. The Company expects to open at least 80 stores in fiscal 2026, through a mix of M&A and new store construction, bringing the three-year strategic plan period total to approximately 500 stores. Net interest expense is expected to be approximately $110 million. Depreciation and amortization is expected to be approximately $450 million and the purchase of property and equipment is expected to be approximately $600 million. The tax rate is expected to be approximately 24% to 26% for the year. Casey's General Stores, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited) Twelve months ended April 30, 2025 2024 Cash flows from operating activities: Net income $ 546,520 $ 501,972 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 403,647 349,797 Amortization of debt related costs 2,312 1,111 Change in excess replacement cost over LIFO inventory valuation 11,530 12,499 Share-based compensation 47,732 41,379 Loss on disposal of assets and impairment charges 12,401 6,414 Deferred income taxes 59,958 53,252 Changes in assets and liabilities: Receivables (1,297 ) (31,246 ) Inventories (7,756 ) (51,785 ) Prepaid expenses 3,658 (3,684 ) Accounts payable (20,782 ) (8,731 ) Accrued expenses 21,525 14,387 Income taxes 15,460 5,112 Other, net (4,054 ) 2,476 Net cash provided by operating activities 1,090,854 892,953 Cash flows from investing activities: Purchase of property and equipment (506,224 ) (522,004 ) Payments for acquisitions of businesses, net of cash acquired (1,239,249 ) (330,032 ) Proceeds from sales of property and equipment 18,805 26,680 Net cash used in investing activities (1,726,668 ) (825,356 ) Cash flows from financing activities: Proceeds from long-term debt 1,100,000 — Repayments of long-term debt (239,492 ) (53,656 ) Payments of debt related costs (5,891 ) — Payments of cash dividends (72,309 ) (62,918 ) Repurchase of common stock and payment of related excise taxes (734 ) (104,898 ) Tax withholdings on employee share-based awards (25,580 ) (18,512 ) Net cash provided by (used in) financing activities 755,994 (239,984 ) Net increase (decrease) in cash and cash equivalents 120,180 (172,387 ) Cash and cash equivalents at beginning of the period 206,482 378,869 Cash and cash equivalents at end of the period $ 326,662 $ 206,482 Expand RECONCILIATION OF NET INCOME TO EBITDA We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. EBITDA is not considered to be a GAAP measure, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. This measure has limitations as an analytical tool, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. We believe EBITDA is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities, and it is regularly used by the Company for internal purposes including our capital budgeting process, evaluating acquisition targets, assessing performance, and awarding incentive compensation. Because non-GAAP financial measures are not standardized, EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of this non-GAAP financial measure with those used by other companies. The following table contains a reconciliation of net income to EBITDA for the three and twelve months ended April 30, 2025 and 2024: NOTES: Gross Profit is defined as revenue less cost of goods sold (exclusive of depreciation and amortization) Inside is defined as the combination of Grocery and General Merchandise and Prepared Food and Dispensed Beverage This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, performance at our stores. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any results expressed or implied by these forward-looking statements, including but not limited to the execution of our strategic plan, the integration and financial performance of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges and disruptions, the impact and duration of the conflict in Ukraine or other geopolitical disruptions, as well as other risks, uncertainties and factors which are described in the Company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website. Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey's disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events, or otherwise. Corporate information is available at this website: Earnings will be reported during a conference call on June 10, 2025. The call will be broadcast live over the Internet at 7:30 a.m. CDT. To access the call, go to the Events and Presentations section of our website at No access code is required. A webcast replay of the call will remain available in an archived format on the Events and Presentations section of our website at for one year after the call. CASY-IR
Yahoo
03-05-2025
- Business
- Yahoo
American Shoppers Are Grabbing More Groceries at the Gas Station
American consumers are feeling stressed and stretched. They're finding some retail relief just a few feet from the fuel pump. Convenience stores like Circle K were among just a handful of retailers that had more customers coming into their stores year-over-year in March, according to Kantar Retail's monthly shopper tracking survey. which uses mobile-device location data to track foot traffic, said in December that 'C-store' chains like Kwik Trip and Buc-ee's saw year-over-year growth in the number of shoppers coming to their stores in 2024. That has happened, retail experts say, as convenience chains have sought to improve their food and beverage offerings while keeping prices affordable. 'As consumers start to look for value, we're a great trade-down opportunity from a price perspective, but not a trade-down in quality,' said Darren Rebelez, CEO of Casey's General Stores (CASY), during a mid-March conference call. Fourth-fifths of the more than 150,000 convenience stores in the US sell fuel, according to the National Association of Convenience Stores. The smaller shops attached to gas stations stock essentials like milk, bread. pasta, fresh produce and diapers, along with sunglasses, shampoo, cosmetics and toys. Some 80% of the items bought at gas station stores are consumed within the hour, according to NACS, but many shoppers both fill up the tank and stock up on pantry items, like bread or eggs, for their next meal. Dollar sales of tobacco products, the largest convenience-store category according to market research firm NIQ, fell last year, while frozen food, wine, and deli and dairy products all rose. Younger shoppers and those with children are particularly drawn to the stores' combination of selection and convenience, according to Julie Craig, Kantar's vice president of shopper insights. 'If we put ourselves in the mindset of younger parents not wanting to jump through hoops in a traditional grocery store—parking, getting a cart, sprinting across an enormous store, waiting in a checkout line—the convenience stores offer the ultimate quick trip,' she said. Non-fuel gas-station sales at Casey's, which has more than 3,000 locations, rose more than 15% in its most recent quarter, driven by general merchandise along with prepared food such as hot sandwiches and baked goods. 'We sell basic daily needs … that are low-dollar denominations,' Rebelez said. 'When people have to pull back on discretionary spending, a lot of what we sell would be considered by our guests to be non-discretionary.' Read the original article on Investopedia
Yahoo
11-04-2025
- Business
- Yahoo
Casey's General Stores Stock Gains Another Bull
Casey's General Stores could be well-positioned to expand and relatively insulated from tariffs and an economic downturn, KeyBanc analysts said in a recent research note. KeyBanc initiated coverage of Casey's General Stores with an "overweight" rating and $500 price target Thursday, suggesting 9% upside from Friday's close. Shares added over 4% Friday amid broader market gains and have risen nearly 50% over the past General Stores (CASY) has gained another bull. KeyBanc Capital Markets on Thursday initiated coverage of the Iowa-based gas station and convenience store chain at "overweight" with a $500 price target. It is the highest of the five current price targets tracked by Visible Alpha, which has a consensus of $468.50. Casey's General Stores shares added over 4% Friday to close at $457.25 amid broader market gains. They have risen nearly 50% over the past year. KeyBanc analysts wrote that Casey's may scoop up more competitors—it has acquired nearly 470 stores in the past five years—and bolster their sales by introducing pizza and prepared foods. "Looking forward, we see balanced growth driven from organic store openings, small acquisitions ... and (at a store level) from its investments in its food innovation pipeline," the analysts said. The convenience store industry, which KeyBanc estimates generated 2024 sales of $825 billion, "has little direct tariff risk," it said. But the field is also fragmented and ripe for consolidation, with KeyBanc estimating 75% of chains may go out of business or be acquired by competitors. Much of the sales growth in the gas station sector has come in recent years from snacks, drinks, tobacco and items sold inside convenience stores, KeyBanc said, adding that this is Casey's strength. The company is the fifth-largest pizza chain in the U.S. and growing, analysts said. "Despite being a convenience store and operating in rural and lower-population markets, Casey's prepared food business produces impressive volume, with (average unit volume) better than Subway," the note said, adding: "Its food innovation pipeline is also gaining sophistication and should drive comp growth." With pizza prices $1 or $2 below competitors, Casey's may draw in customers looking for value, the analysts said. CEO Darren Rebelez said Casey's wants to make inroads with people looking to save and has seen recently seen customers pick baked goods over high-priced candy. Read the original article on Investopedia Sign in to access your portfolio
