Casey’s General Stores reported better-than-expected second-quarter sales amid strong inside-store and fuel sales.
“Casey’s had a remarkable second quarter and is well on our way to executing our long-term strategic plan,” said president and CEO Darren Rebelez. “The company delivered well-balanced financial results, with contributions from both ongoing strong fuel profitability and inside sales volume and profit improvements.”
Casey’s is on track to close on the largest acquisition in its history, the 94-store Bucky’s chain, by the end of the calendar year.
“The acquisition is a strong strategic fit and is expected to be accretive to earnings in fiscal 2022,” the retailer stated.
In addition, the company expects to complete the construction of approximately 40 new stores this fiscal year.
Casey’s reported earnings per share of $3.00 for the quarter ended Oct. 31, compared to $2.21 for the year-ago period. Analysts had forecast $2.66 per share.
Total revenue fell 11% to $2.22 billion. Analysts had projected revenue of $2.20 billion. Inside same-store sales increased 3.5%.
“Inside same-store sales were driven by strong performance in alcohol, packaged beverage and tobacco, along with continued strength in whole pizza pie sales,” the company stated. “This was offset by pressure in the dispensed beverage and bakery categories, though these categories experienced improvements in volume compared to first quarter.”
Digital sales increased 127% compared to prior year. Casey’s Rewards recently exceeded 3 million members.
Based in Ankeny, Iowa, Casey’s owns and operates more than 2,200 convenience stores in 16 states.