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Fuel Profits Lift Casey's Despite Consumer Caution
21 Sep
Summary
- First-quarter revenue hit $5.68 billion, a 24.3% increase year over year.
- Same-store sales growth of 3.2% fell short of Wall Street expectations.
- Fuel gross profit surged 19.6% due to expanded fuel margins.
Casey's General Stores, Inc. (NASDAQ:CASY) announced fiscal first-quarter results on September 9, 2026, reporting $5.68 billion in revenue, a 24.3% increase compared to the previous year. Earnings per share stood at $7.37, surpassing analyst expectations. However, the company's stock experienced a decline as same-store sales growth was reported at 3.2%, falling short of the anticipated 3.8% from Wall Street.
Despite a "volatile" fuel environment and a slight decline in fuel gallons sold, fuel profitability proved to be a significant driver. Fuel gross profit climbed 19.6% to $446.9 million, with fuel margins expanding to 47.8 cents per gallon. This demonstrates Casey's ability to maintain profitability even with lower gallon volumes. Prepared food sales also saw positive momentum, with same-store sales rising 4.8% and margins improving.
The company's overall financial performance showed robust earnings growth, with EBITDA increasing 17.1% to $485.1 million and net income growing 27.1% to $273.7 million. Casey's is actively expanding its store base and continuing the integration of Fikes, which is ahead of schedule. The company aims to open at least 120 new stores in fiscal 2027 through construction and acquisitions, reinforcing its long-term growth strategy.
