Casey's operates 2,536 stores. (Photo: Business Wire)
Casey’s General Stores reported first-quarter earnings that topped Street estimates amid what it called a more “normalized macro operating environment.”
The nation’s third-largest convenience store retailer said it currently has 125 stores under agreement to acquire, including 63 stores previously announced from EG Group Ltd. Casey's is updating its fiscal 2024 outlook as a result of the pending transactions and now expects to add at least 150 stores in fiscal 2024.
In June, Casey’s unveiled a strategic growth plan that included a goal of adding 350 stores by the end of fiscal year 2026, with the expansion including both organic growth and acquisitions.
Casey’s reported earnings per share of $4.52 for its first quarter (ended July 31), up 11% from the year-ago period. Analysts had expected earnings per share of $3.36.
Revenue dropped to $3.87 billion from $4.45 billion and topping estimates of $3.85 billion.
Total inside sales were up 8.1% for the quarter driven by strong performance in the prepared food and dispensed beverage category, including whole pizza pies, hot sandwiches and donuts as well as non-alcoholic and alcoholic beverages, snacks and candy in the grocery and general merchandise category.
“Our team is off to a great start on our three-year strategic plan, highlighted by an 11% increase in diluted EPS,” said Darren Rebelez, chairman, President and CEO. “With a more normalized macro operating environment in the quarter, the strength of Casey's unique business model was on full display.”
Rebelez added that the fuel team continues to do an excellent job “striking the right balance between gallon growth and gross profit margin, as evidenced by fuel margin of 41.6 cents per gallon while growing same-store gallons. “
“Finally, I am very proud of our team's ability to effectively manage operating expenses as we continue to prioritize simplification and efficiency inside our stores,” he said.
At July 31, 2023, the company had approximately $1.3 billion in available liquidity, consisting of approximately $439 million in cash and cash equivalents on hand and $900 million in available borrowing capacity on existing lines of credit.