Casey's General Stores, Inc. ( CASY Quick Quote CASY - Free Report) is making every possible effort to enrich customers’ experience. The company’s growth strategy, solid digital offerings and constant efforts to fortify its Prepared Food & Dispensed Beverage unit via grab-and-go items and enhanced menu offerings are notable growth drivers. Its proven omni-channel mantra to survive on the tough retail landscape including its digital engagements like mobile app and online ordering capabilities as well as store-expansion endeavors appear well on track. Let’s delve deeper. What’s Adding Up to Sales?
Casey's constant expansion of its digital capabilities are helping it offer a seamless shopping experience to its guests and aiding same-store sales growth. During first-quarter fiscal 2022, digital sales jumped 14%. Its Reward program is also continuously growing and the company just eclipsed 4 million members last month.
In addition, management expanded the delivery capabilities including the Uber Eats marketplace across 750 stores while the DoorDash ( DASH Quick Quote DASH - Free Report) marketplace is available at the company’s 890 outlets. Casey's DoorDash white label delivery, which is a third-party service that takes orders via the company’s systems across 830 stores, also seems impressive. The company also continues utilizing its own delivery drivers at 400 stores as well as keeps offering in-store pickup and curbside pickup at above 2,200 outlets. Casey's is banking on store-related moves to boost its sales. During the first quarter of fiscal 2022, the company constructed three stores, acquired 139 stores and closed five. As of Jul 31, 2021, it operated 2,380 stores. The acquisition of Buchanan Energy adds 94 retail stores and 79 dealer locations to Casey's business. Robust expansion of digital and store portfolio along with enhancement of delivery platforms for guests are likely to keep contributing to sales ahead. In fact, price and product optimization strategy, cost-containment efforts, distribution efficiency and capital reallocation plan should help augment sales and fuel margin. Total revenues surged 51.2% year over year in the fiscal first quarter. For fiscal 2022, Casey's envisioned same-store fuel and Inside sales to rise by mid-single digit percentages. Wrapping Up
Casey's has gradually evolved into a renowned convenience store retailer with a leading pizza chain in the United States. The company’s breakfast line-up, particularly pizza, is doing pretty well. Other items like donuts, baked goods, coffee and sandwiches are also on the list. Management remains optimistic about these line-ups and looks forward to making innovation in order to accelerate breakfast growth.
Casey's loyalty program, digitization endeavors, increased penetration of private-label products and customer-retention capability helped it successfully navigate the ongoing pandemic. Also, the company’s focus on tapping the key markets is evident from its buyout of Buchanan Energy and its chain of Bucky’s Convenience Stores. Shares of this presently Zacks Rank #2 (Buy) company have increased 12.3% in a year, outperforming the industry’s 5% growth. Other Hot Stocks in Retail The TJX Companies ( TJX Quick Quote TJX - Free Report) has a long-term earnings growth rate of 10.5% and a Zacks Rank #1 (Strong Buy), currently. You can see . the complete list of today’s Zacks #1 Rank stocks here Costco ( COST Quick Quote COST - Free Report) has a long-term earnings growth rate of 9.3% and is Zacks #2 Ranked at present.