Casey’s Earnings Soar on Record Store Growth and Fuel Margins
- Hardik Shah
- 4 days ago
- 3 min read
TLDR
Record FY25 earnings: Diluted EPS rose 9% to $14.64, net income hit $546.5M, and EBITDA reached $1.2B (+13.3%).
Historic store expansion: 270 stores added—most ever—including 198 from the Fikes acquisition.
Fuel and food performance: Fuel gross profit surged 10.7%; hot sandwiches, bakery, and non-alcoholic beverages led inside sales.
Business Overview
Casey’s General Stores (NASDAQ: CASY) operates a chain of convenience stores across 17 Midwestern and Southern U.S. states. Its revenue model spans prepared foods, grocery and general merchandise, and fuel. The company differentiates itself through a strong rural footprint, self-distribution, and an in-house food program led by popular pizza and sandwich offerings. It also operates the Casey’s Rewards loyalty platform, now boasting over 9 million members.
Casey's Earnings for FY 2025:
Revenue: $15.9B, up 7.2% YoY.
Net income: $546.5M, up 8.9%.
Diluted EPS: $14.64 (+9.0%).
EBITDA: $1.2B, up 13.3% YoY.
Inside sales reached $5.76B (+10.9%), while fuel gross profit climbed to $1.24B (+10.7%). Prepared food and beverage sales rose 10.3% and grocery/general merchandise by 11.2%. Same-store inside sales increased 2.6%, aided by 3.5% growth in food and beverages. Margins were robust: 41.5% for inside, 58.2% for prepared food, and 35% for grocery.
Forward Guidance for FY 2026:
EBITDA growth of 10–12%.
Same-store inside sales to grow 2–5%.
Fuel gallons sold to range from –1% to +1%.
Operating expenses to rise 8–10%.
CapEx at ~$600M; depreciation ~$450M.
Tax rate: 24–26%.
Despite near-term drag from the CEFCO acquisition, the company expects the transaction to be EBITDA-accretive.
CEO Darren Rebelez noted, “Fiscal 2025 was a testament to our two-pronged approach of building and acquiring stores, ensuring predictable, ratable growth”.
Operational Performance
270 new stores added in FY25 (35 new builds + 235 acquired).
Same-store labor hours fell for the 12th straight quarter.
Guest satisfaction and employee engagement both hit all-time highs.
Prepared food innovation, such as a chicken wing platform and the return of BBQ brisket pizza, boosted traffic and engagement.
Challenges included:
Margin pressure from lower-margin CEFCO stores (~160 bps impact).
Headwinds in vape sales from illicit market activity, offset by 54% growth in nicotine pouch alternatives.
Market Insights
Consumers continue to visit Casey’s frequently, with resilient spending even among lower-income cohorts.
Energy drinks and non-alcoholic beverages outperformed in grocery.
Bakery alternatives are replacing pricier candy as cocoa prices soar.
Casey’s maintains low import exposure (<5%), limiting tariff risk.
“Our inside offering continues to be a differentiator. Nearly 75% of inside transactions aren’t tied to fuel,” Rebelez emphasized.
Strategic Initiatives
Fuel 3.0 Initiative: Upstream sourcing led to a healthy 38.7¢ per gallon margin.
Kitchen remodels at acquired stores are planned over the next two years.
Private label strategy is shifting toward a three-tier system (premium, national-brand equivalent, and value).
Casey's Rewards membership surpassed 9 million, reinforcing its direct-to-consumer engagement.
“The Fikes fuel supply team has been doing this for a long time. We’ve really integrated them into the Casey’s team,” said Rebelez on leveraging CEFCO capabilities.
Capital Allocation
Dividend Policy: Raised 14% to $0.57/share—26th consecutive annual increase.
Share Buybacks: Plans to repurchase ~$125M in FY26, the largest since FY18.
Debt & Liquidity:
Ended FY25 with $1.2B liquidity; debt-to-EBITDA at 1.9x.
Company fully funded CapEx and dividends from operating cash flow without additional debt drawdown.
The Bottom Line
Casey’s capped off FY2025 with record results, led by disciplined store expansion, food innovation, and operational efficiency. The company’s ability to grow both organically and via acquisitions while delivering on margins and cash flow illustrates a durable and scalable model. As Casey’s heads into FY2026, investors should monitor the pace of CEFCO integration, inside sales comps, and margin resiliency—especially amid inflationary and competitive pressures.
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