Casey’s General Stores Executing Well

Image Source: TradingView

By Brian Nelson, CFA

Casey’s General Stores (CASY) recently reported solid results for the first quarter of fiscal 2026. Revenue advanced 11.5% from the same period a year ago, while diluted earnings per share of $5.77 was up 19.5% from the same quarter last year. EBITDA of $414.3 million was up 19.8% from last year’s period. Inside same-store sales increased 4.3% compared to the prior year, and 6.7% on a two-year stacked basis, with an inside margin of 41.9%. Total inside gross profit increased 14.8%, while total fuel gross profit increased 18.8%.

Management had the following to say about the results:

Casey’s delivered an excellent first quarter highlighted by strong sales growth both inside and outside the store. Our inside same-store sales were driven by positive traffic growth due to our summer merchandising plan as well as our team’s outstanding execution, demonstrating our ability to serve our guests efficiently at a high level. Our fuel team did a tremendous job achieving same-store gallon growth while maintaining a healthy fuel margin. Overall, robust same-store sales combined with operating over 200 more stores than the prior year has led to outstanding financial results across the business.

Casey’s first quarter fiscal 2026 results were driven by healthy performance across grocery and general merchandise as well as prepared food and dispensed beverage. It also benefited from a 1.7% increase in same-store fuel gallons sold and a modestly higher fuel margin of 41.0 cents per gallon. Casey’s had approximately $1.4 billion in available liquidity at the end of the quarter, consisting of approximately $458 million in cash and cash equivalents and $900 million in available borrowing capacity on existing lines of credit.

Looking to fiscal 2026, Casey’s expects EBITDA to increase 10%-12% and inside same-store sales to increase 2%-5% on an inside margin of approximately 41%. 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. We like Casey’s, but shares aren’t cheap enough for us to bite.

—–