Casey's General Stores, Inc.
CASY · Nasdaq
Next quarter
Expected to report Dec 8, 2026 — estimated from last year’s reporting date.
Consensus is $6.18 EPS for Oct 2026 across 7 estimates, ranging $5.68 to $6.36.
CASY Jul 2026
- 11.67%
- -14.24%
- $6.60
- $7.37
- —
- $5.68B
Reported results
- $5.68B
- $273.72M
- $7.37
Highlights
- Earnings beat: Diluted EPS was $7.37, ahead of the $6.60 consensus by 11.67% and up 27.7% from $5.77 a year ago.
- Profit growth: Revenue increased 24.3% to $5.68 billion, net income rose 27.1% to $273.7 million, and EBITDA grew 17.1% to $485.1 million.
- Inside sales: Inside same-store sales increased 3.2%, including 4.8% growth in prepared food and dispensed beverages and 2.7% in grocery and general merchandise; inside margin rose to 42.2% from 41.9%.
- Fuel profitability: Fuel gross profit increased 19.6% to $446.9 million as fuel margin expanded to 47.8 cents per gallon from 41.0 cents, despite same-store gallons declining 0.3%.
- Whole-pizza momentum: Prepared food results were led by positive traffic and strong whole-pizza sales, lifting prepared food gross profit 9.8% to $292.0 million and margin to 59.3%.
- Cost pressure: Operating expenses increased 8.0% to $754.1 million, driven by 64 additional stores, higher credit-card fees, employee costs and insurance.
- Expansion: Casey’s ended the quarter with 2,959 stores, adding 9 new builds and 12 acquired locations while closing or divesting 6 stores; management remains on track to open at least 120 stores in fiscal 2027.
- Outlook and capital: Fiscal 2027 guidance was unchanged, including 8%-10% EBITDA growth, 2%-5% inside same-store sales growth and at least 120 new stores; liquidity was approximately $1.4 billion after $45.6 million of share repurchases.
Analysis
Casey’s delivered a strong start to fiscal 2027, with diluted EPS of $7.37 beating the $6.60 consensus by 11.67%. Revenue rose 24.3% year over year to $5.68 billion, net income increased 27.1% to $273.7 million and EBITDA grew 17.1% to $485.1 million. Compared with the latest prior quarter supplied, Q3 fiscal 2026, revenue was $3.92 billion, net income was $130.1 million and EPS was $3.49; a direct sequential comparison to the immediately preceding Q4 is not available in the supplied history. The quarter also benefited from Casey’s seasonally stronger first fiscal quarter.
The print was defined by two gross-profit drivers. Inside same-store sales rose 3.2%, led by 4.8% prepared food growth and whole-pizza traffic, while inside margin improved 30 basis points to 42.2%. Fuel gross profit rose 19.6% to $446.9 million as margin increased 6.8 cents per gallon to 47.8 cents, although same-store gallons fell 0.3%. These gains more than offset 8.0% operating-expense growth. Management left fiscal 2027 guidance unchanged, calling for 8%-10% EBITDA growth, 2%-5% inside same-store sales growth and at least 120 store openings.
Earnings and expenses
- Revenue: Total revenue rose 24.3% to $5.68 billion, with retail fuel revenue up 36.3% to $3.72 billion because average fuel prices increased 33.0% and total gallons sold rose 2.5%.
- Profitability: Net income increased to $273.7 million from $215.4 million, while diluted EPS rose to $7.37 from $5.77; EBITDA increased to $485.1 million from $414.3 million.
- Operating costs: Operating expenses increased $55.9 million, or 8.0%, to $754.1 million. The increase included approximately 2% from operating 64 more stores, 1.5% from same-store credit-card fees, and roughly 1% each from employee expense and insurance.
- Tax and interest: Net interest expense declined 17.8% to $22.1 million and the effective tax rate fell to 21.1% from 22.7%, partly because of higher excess tax benefits from share-based awards.
Inside-store momentum
Inside same-store sales increased 3.2%, with prepared food and dispensed beverages up 4.8% and grocery and general merchandise up 2.7%. Management attributed prepared food growth primarily to positive traffic led by whole pizzas, while non-alcoholic beverages drove grocery and general merchandise. Total inside gross profit rose 6.3% to $749.8 million, and inside margin expanded approximately 30 basis points to 42.2% through favorable mix and cost-of-goods management. Prepared food margin reached 59.3% from 58.0%, while grocery and general merchandise margin eased to 35.6% from 35.9%.
Fuel margin expansion
Fuel was the largest incremental gross-profit contributor. Fuel gross profit increased 19.6% to $446.9 million, supported by 934.2 million gallons sold versus 911.8 million a year earlier and a margin of 47.8 cents per gallon versus 41.0 cents. Same-store gallons declined 0.3%, but the store base added enough volume to lift total gallons 2.5%. The filing characterized the quarter's fuel margin as historically high and subject to short-term volatility, making the 6.8-cent year-over-year expansion an important but potentially less durable contributor to earnings.
Store growth and outlook
- Store base: Casey’s added 9 newly constructed stores and 12 acquired stores, offset by 6 closures or divestitures, ending July with 2,959 locations in 19 states versus 2,895 a year earlier.
- Strategic plan: Management said integration of the Fikes acquisition was running ahead of schedule and described the quarter as a strong start to the three-year strategic plan released in June.
- Fiscal 2027 targets: Guidance remains unchanged: inside same-store sales growth of 2%-5%, inside margin above 42%, same-store fuel gallons ranging from down 1% to up 1%, operating-expense growth of approximately 5%-7% and EBITDA growth of 8%-10%.
- Investment plan: The company still expects at least 120 store openings, approximately $800 million of property-and-equipment spending, $95 million of net interest expense and $490 million of depreciation and amortization in fiscal 2027.
Cash flow and capital
- Operating cash flow: Cash from operations was $384.1 million, up from $372.4 million a year earlier, as higher gross profit and lower interest payments offset increased operating expenses and working-capital timing effects.
- Investment: Capital spending was $194.4 million and acquisition payments were $43.9 million, taking total property, equipment and acquisition spending to $238.3 million versus $119.5 million in the prior-year quarter.
- Liquidity: Casey’s held $524.1 million of cash and had approximately $857 million of available borrowing capacity, for total available liquidity of about $1.4 billion.
- Shareholder returns: The company repurchased $45.6 million of stock during the quarter, with $972.6 million remaining under the authorization, and approved a quarterly dividend of $0.65 per share.
