Casey’s Profit Jumps 66% on Fuel, Food Gains
The convenience-store chain posted diluted earnings of $4.37 a share, more than doubling its year-earlier pace.
Casey’s General Stores (CASY) reported a 66.2% jump in fourth-quarter diluted earnings to $4.37 a share, capping a year in which profit growth accelerated across fuel, food and grocery aisles. The results marked the convenience-store operator’s strongest quarterly earnings expansion in at least two years and followed its addition to the S&P 500 Index during the fiscal year.
The quarter stood out for a sharp rebound in fuel profitability and sustained momentum in prepared foods, areas that had softened in prior periods. Inside same-store sales rose 5.5% year-over-year, nearly triple the 1.7% growth recorded in the same quarter a year earlier, while fuel gallons sold climbed 1.5% after a near-flat 0.1% gain.
Revenue for the quarter ended April 30 reached $4.56 billion, up 12.3% from a year earlier, while net income surged 65.5% to $162.7 million. Earnings before interest, taxes, depreciation and amortization grew 33.2% to $350.3 million, outpacing the 20.1% increase in the year-ago quarter.
Fuel drove the bulk of the upside. Same-store gallons sold rose 1.5%, while fuel margin widened to 46.9 cents a gallon from 37.6 cents a year earlier. Renewable fuel credits contributed $15.2 million, more than triple the $4.3 million generated in the prior-year quarter. Inside the store, prepared food and dispensed beverage same-store sales climbed 6.6%, led by whole pizzas, appetizers and sides, while grocery and general merchandise sales rose 5.1%. Margins in both categories expanded, reaching 59.5% and 35.7%, respectively.
Operating expenses rose 10.1%, a slower pace than the 14.5% increase in the prior-year quarter, as same-store labor hours remained flat. The company opened or acquired 80 stores during the fiscal year, bringing its total count to 2,944.
Casey’s raised its quarterly dividend 14% to 65 cents a share and expanded its share repurchase authorization to $1 billion, with $63 million repurchased during the quarter. For fiscal 2027, the company expects inside same-store sales growth of 2% to 5%, inside margins above 42%, and EBITDA growth of 8% to 10%.
The company’s loyalty program, Casey’s Rewards, grew to nearly 10.5 million members by year-end, up from over 9 million a year earlier. Its sauced wings program expanded to nearly 850 stores as of April 30.