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Casey's revenues grew 11.5% year over year to $4.57B, surpassing estimates.
Inside same-store sales rose 4.3%, aided by higher traffic and summer merchandising.
EBITDA increased 19.8% to $414.3M, with margin expanding 70 basis points to 9.1%.
Casey's General Stores, Inc. (CASY - Free Report) reported solid first-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.
The company posted an impressive fiscal first quarter, marked by robust sales growth both inside and outside its stores. Growth in inside same-store sales was fueled by increased traffic and the successful execution of the summer merchandising plan. The fuel segment saw same-store gallon growth while preserving healthy margins and overall strong same-store performance, along with the addition of more than 200 new stores, which drove excellent results across the business.
Casey's General Stores, Inc. Price, Consensus and EPS Surprise
CASY, one of the leading convenience store chains in the United States, posted quarterly earnings of $5.77 per share, which beat the Zacks Consensus Estimate of $5.01. This represents a 19.5% increase from $4.83 per share reported in the prior-year quarter.
The company reported total revenues of $4,567.1 million, which beat the Zacks Consensus Estimate of $4,525 million. The metric increased 11.5% from $4,097.7 million posted in the year-ago period.
Total inside sales jumped 14.2% year over year to $1.68 billion in the fiscal quarter. This growth was driven by strong performance in the prepared food and dispensed beverage segment, including whole pizzas and bakery items, as well as robust sales of non-alcoholic beverages in the grocery and general merchandise category. Inside same-store sales increased 4.3% compared with a 2.3% rise registered in the year-ago period. We expected inside same-store sales to grow 3.6% in the quarter under review.
Insight Into CASY’s Margins & Expenses Performance
Gross profit rose to $1.11 billion, up from $955.3 million in the same quarter last year. Gross margin expanded 110 basis points to 24.4%.
The total inside gross profit increased 14.8% year over year to $705.5 million. Meanwhile, the inside margin was 41.9%, up about 20 basis points from the prior-year period.
EBITDA increased 19.8% year over year to $414.3 million in the quarter under discussion, driven by higher inside and fuel gross profit. This was partially offset by increased operating expenses. EBITDA margin also expanded 70 basis points (bps) year over year to 9.1%.
The company witnessed a rise of 14.6% in operating expenses to $698.2 million. This increase was primarily due to operating 221 additional stores compared with the prior-year period, which accounted for around 10% of the rise. Same-store employee expenses accounted for roughly 1.5% of the increase, with higher labor rates partially offset by a reduction in same-store labor hours. We estimated a 15% increase in operating expenses.
Decoding CASY’s Segmental Performance
Prepared Food & Dispensed Beverage sales rose 13.2% year over year to $458.4 million, surpassing our estimate of $457.2 million. Same-store sales increased 5.6% compared with 4.4% in the year-ago quarter. The Prepared Food & Dispensed Beverage margin declined 30 bps to 58% from 58.3% in the prior-year period.
Grocery & General Merchandise sales increased 14.6% to $1.23 billion in the fiscal quarter, surpassing our estimate of $1.21 billion. Same-store sales advanced 3.8% compared with 1.6% in the year-ago quarter. The Grocery & General Merchandise margin expanded 50 bps to 35.9% from 35.4% in the prior-year period.
We note that Fuel sales increased 7% year over year to $2.73 billion in the fiscal quarter, meeting our estimate. Fuel gallons sold jumped 18% to 911.8 million, benefiting from operating more stores as well as a 1.7% rise in same-store gallons. We anticipated an increase of 21% in fuel gallons sold. The fuel margin improved slightly to 41 cents per gallon from 40.7 cents in the prior-year period.
Casey's, which operated 2,895 stores as of July 31, 2025, ended the fiscal quarter with cash and cash equivalents of $458.1 million, long-term debt and finance lease obligations (net of current maturities) of $2.37 billion and shareholders’ equity of $3.64 billion.
During the quarter, the company repurchased approximately $31 million of shares and has around $264 million remaining under its current buyback authorization.
In September, the management declared a quarterly dividend of 57 cents per share, payable on Nov. 14, 2025, to its shareholders of record as of Nov. 1. This continues the company’s long-standing track record of dividend payments.
CASY Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Sneak Peek Into CASY’s Outlook
For fiscal 2026, management expects EBITDA growth to be 10% to 12%, slightly below the 13.3% reported in fiscal 2025. The company anticipates total operating expenses to increase 8% to 10%. The purchase of property and equipment is expected to be approximately $600 million.
Casey's expects inside same-store sales to increase 2-5% and an inside margin to be 41% compared with 41.5% reported in fiscal 2025. Management foresees same-store fuel gallons sold between negative 1% and positive 1%.
The company anticipates opening about 80 stores in fiscal 2026, through a mix of M&A as well as new store construction, bringing the three-year strategic plan period total to approximately 500 stores.
Shares of this Zacks Rank #3 (Hold) company have risen 6.4% in the past three months against the industry’s 0.5% decline.
The Zacks Consensus Estimate for Dillard's current financial-year sales and earnings implies a decline of 0.4% and 15.8%, respectively, from the year-ago reported numbers. DDS delivered a trailing four-quarter earnings surprise of 24%, on average.
Grocery Outlet (GO - Free Report) , an extreme value retailer of quality, name-brand consumables and fresh products, carries a Zacks Rank #2 (Buy) at present. GO delivered a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings implies growth of 8.3% and 1.3%, respectively, from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings (OLLI - Free Report) is a value retailer of brand-name merchandise at drastically reduced prices. It currently carries a Zacks Rank #2. OLLI delivered a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current fiscal-year sales and earnings implies growth of 15.6% each from the prior-year levels.
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CASY Q1 Earnings & Revenues Beat Estimates, Inside Sales Up 14.2% Y/Y
Key Takeaways
Casey's General Stores, Inc. (CASY - Free Report) reported solid first-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.
The company posted an impressive fiscal first quarter, marked by robust sales growth both inside and outside its stores. Growth in inside same-store sales was fueled by increased traffic and the successful execution of the summer merchandising plan. The fuel segment saw same-store gallon growth while preserving healthy margins and overall strong same-store performance, along with the addition of more than 200 new stores, which drove excellent results across the business.
Casey's General Stores, Inc. Price, Consensus and EPS Surprise
Casey's General Stores, Inc. price-consensus-eps-surprise-chart | Casey's General Stores, Inc. Quote
Casey's Quarterly Performance: Key Insights
CASY, one of the leading convenience store chains in the United States, posted quarterly earnings of $5.77 per share, which beat the Zacks Consensus Estimate of $5.01. This represents a 19.5% increase from $4.83 per share reported in the prior-year quarter.
The company reported total revenues of $4,567.1 million, which beat the Zacks Consensus Estimate of $4,525 million. The metric increased 11.5% from $4,097.7 million posted in the year-ago period.
Total inside sales jumped 14.2% year over year to $1.68 billion in the fiscal quarter. This growth was driven by strong performance in the prepared food and dispensed beverage segment, including whole pizzas and bakery items, as well as robust sales of non-alcoholic beverages in the grocery and general merchandise category. Inside same-store sales increased 4.3% compared with a 2.3% rise registered in the year-ago period. We expected inside same-store sales to grow 3.6% in the quarter under review.
Insight Into CASY’s Margins & Expenses Performance
Gross profit rose to $1.11 billion, up from $955.3 million in the same quarter last year. Gross margin expanded 110 basis points to 24.4%.
The total inside gross profit increased 14.8% year over year to $705.5 million. Meanwhile, the inside margin was 41.9%, up about 20 basis points from the prior-year period.
EBITDA increased 19.8% year over year to $414.3 million in the quarter under discussion, driven by higher inside and fuel gross profit. This was partially offset by increased operating expenses. EBITDA margin also expanded 70 basis points (bps) year over year to 9.1%.
The company witnessed a rise of 14.6% in operating expenses to $698.2 million. This increase was primarily due to operating 221 additional stores compared with the prior-year period, which accounted for around 10% of the rise. Same-store employee expenses accounted for roughly 1.5% of the increase, with higher labor rates partially offset by a reduction in same-store labor hours. We estimated a 15% increase in operating expenses.
Decoding CASY’s Segmental Performance
Prepared Food & Dispensed Beverage sales rose 13.2% year over year to $458.4 million, surpassing our estimate of $457.2 million. Same-store sales increased 5.6% compared with 4.4% in the year-ago quarter. The Prepared Food & Dispensed Beverage margin declined 30 bps to 58% from 58.3% in the prior-year period.
Grocery & General Merchandise sales increased 14.6% to $1.23 billion in the fiscal quarter, surpassing our estimate of $1.21 billion. Same-store sales advanced 3.8% compared with 1.6% in the year-ago quarter. The Grocery & General Merchandise margin expanded 50 bps to 35.9% from 35.4% in the prior-year period.
We note that Fuel sales increased 7% year over year to $2.73 billion in the fiscal quarter, meeting our estimate. Fuel gallons sold jumped 18% to 911.8 million, benefiting from operating more stores as well as a 1.7% rise in same-store gallons. We anticipated an increase of 21% in fuel gallons sold. The fuel margin improved slightly to 41 cents per gallon from 40.7 cents in the prior-year period.
CASY’s Financial Snapshot: Cash, Debt & Equity Overview
Casey's, which operated 2,895 stores as of July 31, 2025, ended the fiscal quarter with cash and cash equivalents of $458.1 million, long-term debt and finance lease obligations (net of current maturities) of $2.37 billion and shareholders’ equity of $3.64 billion.
During the quarter, the company repurchased approximately $31 million of shares and has around $264 million remaining under its current buyback authorization.
In September, the management declared a quarterly dividend of 57 cents per share, payable on Nov. 14, 2025, to its shareholders of record as of Nov. 1. This continues the company’s long-standing track record of dividend payments.
CASY Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Sneak Peek Into CASY’s Outlook
For fiscal 2026, management expects EBITDA growth to be 10% to 12%, slightly below the 13.3% reported in fiscal 2025. The company anticipates total operating expenses to increase 8% to 10%. The purchase of property and equipment is expected to be approximately $600 million.
Casey's expects inside same-store sales to increase 2-5% and an inside margin to be 41% compared with 41.5% reported in fiscal 2025. Management foresees same-store fuel gallons sold between negative 1% and positive 1%.
The company anticipates opening about 80 stores in fiscal 2026, through a mix of M&A as well as new store construction, bringing the three-year strategic plan period total to approximately 500 stores.
Shares of this Zacks Rank #3 (Hold) company have risen 6.4% in the past three months against the industry’s 0.5% decline.
Stocks to Consider
Dillard's Inc. (DDS - Free Report) is a large departmental store chain featuring fashion apparel and home furnishings, and it currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's current financial-year sales and earnings implies a decline of 0.4% and 15.8%, respectively, from the year-ago reported numbers. DDS delivered a trailing four-quarter earnings surprise of 24%, on average.
Grocery Outlet (GO - Free Report) , an extreme value retailer of quality, name-brand consumables and fresh products, carries a Zacks Rank #2 (Buy) at present. GO delivered a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings implies growth of 8.3% and 1.3%, respectively, from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings (OLLI - Free Report) is a value retailer of brand-name merchandise at drastically reduced prices. It currently carries a Zacks Rank #2. OLLI delivered a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current fiscal-year sales and earnings implies growth of 15.6% each from the prior-year levels.