Casey’s General Stores ((CASY)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Casey’s General Stores recently reported a robust fiscal year, showcasing record earnings and significant growth in store numbers. Despite facing challenges such as the leap year effect, adverse weather conditions, and headwinds from CEFCO stores, the company demonstrated resilience and delivered impressive financial results.
Record-Breaking Store Growth
Fiscal 2025 was a landmark year for Casey’s General Stores, marking the largest store growth in the company’s history. With 35 new builds and the acquisition of 235 units, including 198 CEFCO convenience stores through the Fikes Wholesale transaction, Casey’s has significantly expanded its footprint.
Strong Financial Performance
Casey’s reported another record year for diluted earnings per share, which reached $14.64, reflecting a 9% increase from the previous year. The company generated a record $547 million in net income and $1.2 billion in EBITDA, a 13% increase from the prior year, underscoring its strong financial performance.
Solid Inside Sales Growth
The company experienced a 10.9% growth in total inside sales, with inside same-store sales rising by 2.6%. Prepared food and dispensed beverage sales also saw a 10.3% increase, with same-store sales in this category up by 3.5%, highlighting the strength in Casey’s core offerings.
Fuel Gross Profit Increase
Fuel gross profit increased by 11%, supported by a 13% rise in total fuel gallons sold and an average fuel margin of $0.387 per gallon. This growth in fuel sales contributed significantly to the company’s overall profitability.
Operational Efficiency Gains
Casey’s achieved operational efficiency gains with same-store operating expenses, excluding credit card fees, increasing by only 1.7%. This was favorably impacted by a 2.4% reduction in same-store labor hours, showcasing the company’s focus on cost management.
February Sales Impacted by Leap Year and Weather
February posed challenges due to adverse weather and the leap day effect, which negatively impacted comps by approximately 300 basis points. Despite these hurdles, Casey’s managed to maintain its strong performance throughout the year.
Headwinds from CEFCO Stores
The acquisition of CEFCO stores presented some challenges, contributing to a 160 basis point unfavorable impact on prepared food margins and a $0.02 per gallon headwind on fuel margins. However, Casey’s continues to integrate these stores into its operations.
Challenges with Illicit Vape Products
The vape category faced declines due to the presence of illicit vape products affecting sales. Nonetheless, this was partially offset by growth in nicotine alternatives, indicating a shift in consumer preferences.
Forward-Looking Guidance
Looking ahead to fiscal 2026, Casey’s General Stores anticipates an EBITDA growth of 10% to 12% and plans to open at least 80 new stores. The company remains committed to its strategy of both building and acquiring units, aiming to sustain its growth momentum.
In summary, Casey’s General Stores has delivered a strong fiscal year with record earnings and significant growth, despite facing several challenges. The company’s strategic acquisitions, robust financial performance, and operational efficiencies position it well for continued success in the coming year.