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Here's Why Casey's (CASY) is a Solid Investment Bet Now
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Casey’s General Stores, Inc.’s (CASY - Free Report) strategic initiatives, focus on digital engagement and relentless efforts to enhance customer convenience have been instrumental in driving growth and expanding profit margins. The company’s ambitious store expansion plans and strategic acquisitions further solidify its position as a leading convenience store retailer in the United States, setting the stage for a promising future.
The company has made significant strides in adopting technology advancements, streamlining merchandise ordering efficiency, optimizing inventory management, and harnessing the power of data analytics. These initiatives have positioned Casey's for sustained growth in the future, equipping it to meet evolving demands.
Shares of this Zacks Rank #2 (Buy) company have rallied 13.2% in the past three months in line with the industry. Also, the company outpaced the retail and wholesale sector and S&P 500 stock’s growth of 8.2% and 9.8%, respectively.
Image Source: Zacks Investment Research
Let’s Dig Deeper
Casey’s, the largest convenience retailer, has announced its three-year strategic plan aimed at driving store growth, accelerating its food business and enhancing operations. With a focus on expanding its footprint, offering guest-centered convenience and providing restaurant-quality food, Casey’s aims to differentiate itself from competitors and solidify its position as a leading retailer.
The company’s key initiatives include expanding the store count by 350 stores by the end of fiscal 2026, elevating the food business with innovative menu options, enhancing operational efficiency through data-driven decision-making, fostering a community-first culture, and maintaining financial strength.
Casey’s recognizes the significance of its prepared food offerings, particularly its fresh, handmade pizza, which has propelled it to become the fifth-largest pizza chain in the United States. The company aims to elevate its convenient food options by aligning them with guest preferences and introducing craveable menu items exclusive to Casey’s. Additionally, CASY will expand its private label offerings, capitalizing on its success in the grocery and general merchandise category. The company currently offers more than 300 items under its private brand, and remains confident to increase penetration to 10%.
Casey's strategic acquisition of Buchanan Energy, a prominent player known for its Bucky’s Convenience Stores, Circle K and Pilot Corporation, has proven to be a game-changer. This acquisition has not only diversified the company's product offerings but has also bolstered its competitive edge in the convenience store industry. To support its growth and expansion plans, Casey's is set to invest approximately $500-$550 million in property and equipment in fiscal 2024.
Embracing Digital Era
Casey's has effectively integrated cutting-edge technologies, such as mobile apps and online ordering capabilities. This seamless digital shopping experience has significantly contributed to a notable boost in same-store sales growth.
A testament to its customer-centric approach, Casey's Rewards program has exceeded expectations, amassing more than 6.5 million members. This strong customer response highlights the effectiveness of the program in fostering customer loyalty and retention.
Furthermore, the company has expanded its delivery capabilities by partnering with leading delivery services, such as DoorDash and Uber Eats, catering to customers' growing preference for convenience.
Finishing Up
Casey's unwavering commitment to customer satisfaction is evident in its provision of in-store pickup and curbside pickup options, ensuring customers’ ease and convenience. Moreover, the company's ownership and operation of distribution centers, combined with a dedicated transportation fleet, provide a crucial competitive advantage by bolstering operational control and efficiency.
This Zacks Rank #2 (Buy) company foresees inside same-store sales growth of 3-5% for fiscal 2024, with a focus on improving the inside margin to 40-41%.
3 Other Solid Picks
Here we have highlighted three other top-ranked stocks, namely Associated British Foods (ASBFY - Free Report) , Celsius Holdings (CELH - Free Report) and Walmart (WMT - Free Report) .
Associated British Foods is a diversified international food, ingredients and retail group, which currently sports a Zacks Rank #1 (Strong Buy). ASBFY’s expected EPS growth rate for three to five years is 7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Associated British Foods’ current financial-year sales and earnings suggests growth of 30.4% and 4.2%, respectively, from the year-ago reported figures.
Celsius Holdings, which offers functional drinks and liquid supplements, currently has a Zacks Rank #2. CELH delivered an earnings surprise of 81.8% in the last reported quarter.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings suggests growth of 69.6% and 154.4%, respectively, from the year-ago reported numbers.
Walmart, which operates a chain of hypermarkets, discount department stores and grocery stores, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 5.5%.
The Zacks Consensus Estimate for Walmart’s current financial-year sales suggests growth of 4.2% from the year-ago period’s actual. WMT has a trailing four-quarter earnings surprise of 12%, on average.
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Here's Why Casey's (CASY) is a Solid Investment Bet Now
Casey’s General Stores, Inc.’s (CASY - Free Report) strategic initiatives, focus on digital engagement and relentless efforts to enhance customer convenience have been instrumental in driving growth and expanding profit margins. The company’s ambitious store expansion plans and strategic acquisitions further solidify its position as a leading convenience store retailer in the United States, setting the stage for a promising future.
The company has made significant strides in adopting technology advancements, streamlining merchandise ordering efficiency, optimizing inventory management, and harnessing the power of data analytics. These initiatives have positioned Casey's for sustained growth in the future, equipping it to meet evolving demands.
Shares of this Zacks Rank #2 (Buy) company have rallied 13.2% in the past three months in line with the industry. Also, the company outpaced the retail and wholesale sector and S&P 500 stock’s growth of 8.2% and 9.8%, respectively.
Image Source: Zacks Investment Research
Let’s Dig Deeper
Casey’s, the largest convenience retailer, has announced its three-year strategic plan aimed at driving store growth, accelerating its food business and enhancing operations. With a focus on expanding its footprint, offering guest-centered convenience and providing restaurant-quality food, Casey’s aims to differentiate itself from competitors and solidify its position as a leading retailer.
The company’s key initiatives include expanding the store count by 350 stores by the end of fiscal 2026, elevating the food business with innovative menu options, enhancing operational efficiency through data-driven decision-making, fostering a community-first culture, and maintaining financial strength.
Casey’s recognizes the significance of its prepared food offerings, particularly its fresh, handmade pizza, which has propelled it to become the fifth-largest pizza chain in the United States. The company aims to elevate its convenient food options by aligning them with guest preferences and introducing craveable menu items exclusive to Casey’s. Additionally, CASY will expand its private label offerings, capitalizing on its success in the grocery and general merchandise category. The company currently offers more than 300 items under its private brand, and remains confident to increase penetration to 10%.
Casey's strategic acquisition of Buchanan Energy, a prominent player known for its Bucky’s Convenience Stores, Circle K and Pilot Corporation, has proven to be a game-changer. This acquisition has not only diversified the company's product offerings but has also bolstered its competitive edge in the convenience store industry. To support its growth and expansion plans, Casey's is set to invest approximately $500-$550 million in property and equipment in fiscal 2024.
Embracing Digital Era
Casey's has effectively integrated cutting-edge technologies, such as mobile apps and online ordering capabilities. This seamless digital shopping experience has significantly contributed to a notable boost in same-store sales growth.
A testament to its customer-centric approach, Casey's Rewards program has exceeded expectations, amassing more than 6.5 million members. This strong customer response highlights the effectiveness of the program in fostering customer loyalty and retention.
Furthermore, the company has expanded its delivery capabilities by partnering with leading delivery services, such as DoorDash and Uber Eats, catering to customers' growing preference for convenience.
Finishing Up
Casey's unwavering commitment to customer satisfaction is evident in its provision of in-store pickup and curbside pickup options, ensuring customers’ ease and convenience. Moreover, the company's ownership and operation of distribution centers, combined with a dedicated transportation fleet, provide a crucial competitive advantage by bolstering operational control and efficiency.
This Zacks Rank #2 (Buy) company foresees inside same-store sales growth of 3-5% for fiscal 2024, with a focus on improving the inside margin to 40-41%.
3 Other Solid Picks
Here we have highlighted three other top-ranked stocks, namely Associated British Foods (ASBFY - Free Report) , Celsius Holdings (CELH - Free Report) and Walmart (WMT - Free Report) .
Associated British Foods is a diversified international food, ingredients and retail group, which currently sports a Zacks Rank #1 (Strong Buy). ASBFY’s expected EPS growth rate for three to five years is 7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Associated British Foods’ current financial-year sales and earnings suggests growth of 30.4% and 4.2%, respectively, from the year-ago reported figures.
Celsius Holdings, which offers functional drinks and liquid supplements, currently has a Zacks Rank #2. CELH delivered an earnings surprise of 81.8% in the last reported quarter.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings suggests growth of 69.6% and 154.4%, respectively, from the year-ago reported numbers.
Walmart, which operates a chain of hypermarkets, discount department stores and grocery stores, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 5.5%.
The Zacks Consensus Estimate for Walmart’s current financial-year sales suggests growth of 4.2% from the year-ago period’s actual. WMT has a trailing four-quarter earnings surprise of 12%, on average.