Casey’s Q3 earnings soar on expanding margins
Casey’s General Stores Inc. posted impressive profit growth for its third quarter amid higher inside sales and margin expansion.
The convenience store and fuel retailer is on track to open at least 80 stores in fiscal 2026, through a mix of merger and acquisition activity and new store construction, bringing its three-year strategic plan period total to approximately 500 stores.
Casey's reported net income of $130.1 million, with earnings per share of $3.49, for the quarter ended Jan. 31, up 49.3% from $87.1 million and earnings per share of $3.49 in the year-ago period. Casey's credited margin expansion in both inside store and fuel sales as a key driver of its growth in profitability.
Total revenue rose slightly year over year to $3.92 billion from $3.9 billion, aided by strong performance in product categories including whole pizzas, hot sandwiches and non-alcoholic beverages. For the quarter, total fuel gallons sold increased 2.3% compared to the prior year due to a store count increase as well as growth in same-store gallons sales.
Inside same-store sales rose 4% year over year, while same store fuel gallons sold increased 0.4%. In addition, during the quarter, the Casey's Rewards loyalty program surpassed 10 million members.
As a result of its strong financial performance year-to-date, Casey’s now expects inside same-store sales to increase 3.5% to 4.5% and an inside margin of approximately 41.5% to 42.5%. Total operating expenses are now expected to increase approximately 10%.
[READ MORE: Casey’s reports strong quarter; to open ‘at least’ 80 stores]
"Casey's achieved another successful quarter as strong sales and margin expansion drove performance," said Darren Rebelez, chairman, president and CEO, Casey’s General Stores Inc. "Our high quality inside offering, along with a compelling value proposition, continues to attract guests to our stores. On the fuel side, the team had another sound quarter, expanding fuel margin while reporting positive same-store gallon growth. All of this was anchored by our store level operations team, who continue to meet our guests’ needs in an efficient manner."
Based in Ankeny, Iowa, Casey’s operates approximately 2,900 locations and is the third-largest convenience store retailer and the fifth-largest pizza chain in the United States.
