Food and Grocery Boost Casey’s During Q1
Casey's General Stores, Inc. had a solid first quarter, fueled in part by strong demand for food offerings. The c-store chain announced a 2.3% year-over-year (YoY) lift in sales comps and a 7% increase in diluted earnings per share (EPS).
Total gross profit rose 10.4% to hit $614.3 million for the three-month quarter ending July 31. Also during that period, Casey’s acquired Fikes Wholesale, Inc, and its 198 CEFCO c-stores.
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"Casey's started the fiscal year off on the right foot and delivered another solid quarter highlighted by strong inside gross profit growth,” said Darren Rebelez, chairman, president and CEO. “Inside same-store sales were driven by prepared food and dispensed beverage, with hot sandwiches and bakery performing exceptionally well. The operations team continues to find efficiencies as we reduced same-store labor hours for the ninth consecutive quarter. Finally, we continue to work on closing the highly strategic Fikes acquisition, and look forward to welcoming their team to the Casey’s family."
Mirroring other trends in the fuel and c-store sector, food has become an integral part of the company’s business. During the quarter, same-store sales of grocery and general merchandise edged up 1.6%, while sales of prepared foods and dispensed beverages climbed 4.4%. The margin for grocery and general merchandise came in at 35.4% during Q1, up from 34.1% during the first quarter of last year; the margin for prepared foods topped 58.3%, just about the same compared to the prior first quarter.
For the rest of the fiscal year, Casey’s projects comps to grow 3% to 5% and EBITDA to increase at least 8%. The company also reported that store growth is expected to be approximately 270 units in fiscal 2025.
Meanwhile, the company continues to ramp up its food and beverage program in other ways. In August, Casey’s announced its inaugural Innovation Summit aimed at finding brands with new and innovative products to distribute across its network. Brands chosen as potential suppliers will be invited to an in-person summit at he company’s headquarters in late October.
Founded more than 50 years ago and based in Ankeny, Iowa, Casey’s operates more than 2,600 convenience stores around the United States. The retailer is No. 36 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
