Here's our initial take on Casey's General Stores' (CASY -1.16%) financial report.
Key Metrics
| Metric | Q4 FY24 | Q4 FY25 | Change | vs. Expectations |
|---|---|---|---|---|
| Revenue | $3.60 billion | $3.99 billion | 11% | Beat |
| Earnings per share | $2.34 | $2.63 | 12% | Beat |
| Inside same-store sales | +5.6% | +1.7% | -390 bp | n/a |
| Gross margin | 41.2% | 41.2% | n/c | n/a |
Casey's Uses Food Sales, M&A to Fuel Growth
Convenience store powerhouse Casey's General Stores capped off a strong fiscal 2025, reporting double-digit quarterly revenue and earnings growth that topped expectations.
The company is holding up better than a lot of retailers in a tough environment, with growth being driven by strong results from its bakery and hot sandwich offerings and from nonalcoholic beverages. Inside same-store sales grew by just 1.7% in the quarter, but CEO Darren Rebelez said that the full-year 2.6% growth "outperformed the industry."
Casey's is also doing a good job of keeping a handle on costs, reducing same-store labor hours for the 12th consecutive quarter. Overall inside margin held steady year over year, with a slight uptick in grocery margin offset by a slight decrease in prepared food margin.
This was a year of growth for Casey's. The company grew its store count from 2,658 to 2,904 over the past year, including about 35 new builds, as well as through its $1.1 billion acquisition of Fikes Wholesale, Casey's largest deal to date.
Casey's continues to return more cash to shareholders. The company raised its quarterly dividend by 14% to $0.57 per share, marking the 26th consecutive annual increase.
Immediate Market Reaction
Investors seemed to like what Casey's was serving. The company's stock was up more than 7% immediately following the earnings release but ahead of Tuesday morning's planned call with investors.
What to Watch
This is the end of Casey's fiscal year, and the company provided its first outlook for what it expects in the 12 months ahead. Casey's is forecasting that inside same-store sales will grow by 2% to 5% in fiscal 2026 and that EBITDA will grow by 10% to 12%.
Casey's expects to continue to grow, forecasting it will open at least 80 stores via a combination of new construction and acquisitions, continuing on its three-year plan to expand by about 500 stores.
This is a company that has been able to successfully apply its winning formula to new locations through both organic growth and M&A. It is a tough market for retail right now, but Casey's remains a standout.
