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CASY's Q1 inside sales rose 5.6% to $1.78 billion, with same-store sales up 3.2%.
Prepared food sales grew 7.4%, while energy drinks and nicotine alternatives boosted grocery sales.
Casey's inside margin improved to 42.2%, exceeding its fiscal 2027 target of 42%.
Casey’s General Stores, Inc. (CASY - Free Report) is building its in-store business around affordable prepared meals and a grocery assortment that reflects what customers are buying. Whole pizzas are attracting more customers to its kitchens, while nonalcoholic beverages are driving grocery sales. Casey’s is expanding its own-brand snack offerings and using shelf space previously shifted from cigarettes to nicotine alternatives.
Prepared food and dispensed beverage sales rose 7.4% year over year to $492.6 million in the first quarter of fiscal 2027. Same-store sales increased 4.8% and were up 10.7% on a two-year stacked basis. Customer traffic accounted for most of the gain, with whole pizza unit sales rising at a nearly double-digit rate. Casey’s also featured a limited-time Bacon Cheeseburger Pizza. Category gross profit rose to $292 million from $266 million.
Grocery and general merchandise sales climbed 4.9% to $1.28 billion, with same-store sales up 2.7% year over year and 6.5% on a two-year stacked basis. Energy drink sales rose 12%, and nicotine alternatives grew 47%. Beer sales remained weak, while Casey’s own-brand chip unit sales rose 16% as national-brand chips struggled. Category gross profit increased to $457.8 million from $439.5 million.
Together, the two categories lifted inside sales 5.6% to $1.78 billion and inside gross profit by 6.3% to $749.8 million. Inside same-store sales increased 3.2%. Higher-margin prepared food and dispensed beverages accounted for a greater share of sales. This shift, along with cost management, helped raise the inside margin to 42.2% from 41.9%.
Casey’s reiterated its fiscal 2027 outlook for inside same-store sales growth of 2-5% and an inside margin above 42%. Management reported that August inside same-store volumes remained in line with first-quarter results. With whole pizzas bringing in more customers and beverages driving grocery gains, Casey’s began the year with growth in both categories and an inside margin above its full-year target threshold.
Casey's Price Performance, Valuation & Estimates
Shares of Casey’s have gained 10.7% over the past month compared with the industry’s 5.5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, CASY is trading at a forward 12-month price-to-sales ratio of 1.28, up from the industry average of 0.93.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Casey's fiscal 2027 earnings implies year-over-year growth of 12.8%, whereas the same for fiscal 2028 indicates an uptick of 10%. Estimates for fiscal 2027 and 2028 have been revised upward by 5 cents and 11 cents, respectively, over the past 60 days.
Image Source: Zacks Investment Research
Casey's currently has a Zacks Rank #2 (Buy).
Other Key Picks
We have highlighted three other top-ranked stocks in the retail space, namely BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) , Target Corporation (TGT - Free Report) and Dollar General Corporation (DG - Free Report) .
BJ’s Wholesale emphasizes value through a curated assortment of groceries, fresh foods, general merchandise, gasoline, and ancillary services, supported by digital capabilities and member-focused promotions. The company also holds a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for BJ’s Wholesale’s current fiscal-year earnings and sales indicates growth of 6.8% and 11.7%, respectively, from the year-ago actuals. BJ delivered a trailing four-quarter average earnings surprise of 4.8%.
Target Corporation offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Target’s current fiscal-year earnings and sales suggests growth of 39.1% and 5.1%, respectively, from the year-ago actuals. TGT delivered a trailing four-quarter average earnings surprise of 10.5%.
Dollar General is one of the largest discount retailers in the United States. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Dollar General's current fiscal-year earnings and sales suggests growth of 15.9% and 4.3%, respectively, from the year-ago actuals. DG delivered a trailing four-quarter average earnings surprise of 19.1%.
View the Zacks #1 Rank List
Image: Bigstock
Casey's Pizza & Beverage Strength Lifts In-Store Sales & Margins
Key Takeaways
Casey’s General Stores, Inc. (CASY - Free Report) is building its in-store business around affordable prepared meals and a grocery assortment that reflects what customers are buying. Whole pizzas are attracting more customers to its kitchens, while nonalcoholic beverages are driving grocery sales. Casey’s is expanding its own-brand snack offerings and using shelf space previously shifted from cigarettes to nicotine alternatives.
Prepared food and dispensed beverage sales rose 7.4% year over year to $492.6 million in the first quarter of fiscal 2027. Same-store sales increased 4.8% and were up 10.7% on a two-year stacked basis. Customer traffic accounted for most of the gain, with whole pizza unit sales rising at a nearly double-digit rate. Casey’s also featured a limited-time Bacon Cheeseburger Pizza. Category gross profit rose to $292 million from $266 million.
Grocery and general merchandise sales climbed 4.9% to $1.28 billion, with same-store sales up 2.7% year over year and 6.5% on a two-year stacked basis. Energy drink sales rose 12%, and nicotine alternatives grew 47%. Beer sales remained weak, while Casey’s own-brand chip unit sales rose 16% as national-brand chips struggled. Category gross profit increased to $457.8 million from $439.5 million.
Together, the two categories lifted inside sales 5.6% to $1.78 billion and inside gross profit by 6.3% to $749.8 million. Inside same-store sales increased 3.2%. Higher-margin prepared food and dispensed beverages accounted for a greater share of sales. This shift, along with cost management, helped raise the inside margin to 42.2% from 41.9%.
Casey’s reiterated its fiscal 2027 outlook for inside same-store sales growth of 2-5% and an inside margin above 42%. Management reported that August inside same-store volumes remained in line with first-quarter results. With whole pizzas bringing in more customers and beverages driving grocery gains, Casey’s began the year with growth in both categories and an inside margin above its full-year target threshold.
Casey's Price Performance, Valuation & Estimates
Shares of Casey’s have gained 10.7% over the past month compared with the industry’s 5.5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, CASY is trading at a forward 12-month price-to-sales ratio of 1.28, up from the industry average of 0.93.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Casey's fiscal 2027 earnings implies year-over-year growth of 12.8%, whereas the same for fiscal 2028 indicates an uptick of 10%. Estimates for fiscal 2027 and 2028 have been revised upward by 5 cents and 11 cents, respectively, over the past 60 days.
Image Source: Zacks Investment Research
Casey's currently has a Zacks Rank #2 (Buy).
Other Key Picks
We have highlighted three other top-ranked stocks in the retail space, namely BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) , Target Corporation (TGT - Free Report) and Dollar General Corporation (DG - Free Report) .
BJ’s Wholesale emphasizes value through a curated assortment of groceries, fresh foods, general merchandise, gasoline, and ancillary services, supported by digital capabilities and member-focused promotions. The company also holds a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for BJ’s Wholesale’s current fiscal-year earnings and sales indicates growth of 6.8% and 11.7%, respectively, from the year-ago actuals. BJ delivered a trailing four-quarter average earnings surprise of 4.8%.
Target Corporation offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Target’s current fiscal-year earnings and sales suggests growth of 39.1% and 5.1%, respectively, from the year-ago actuals. TGT delivered a trailing four-quarter average earnings surprise of 10.5%.
Dollar General is one of the largest discount retailers in the United States. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Dollar General's current fiscal-year earnings and sales suggests growth of 15.9% and 4.3%, respectively, from the year-ago actuals. DG delivered a trailing four-quarter average earnings surprise of 19.1%.