Casey's General Stores reported fiscal first-quarter results Tuesday that beat Wall Street estimates on both the top and bottom lines, extending a streak of earnings beats to five consecutive quarters even as its shares fell in the aftermath. The Ankeny, Iowa-based convenience-store operator posted diluted earnings per share of $7.37, ahead of the $6.82 analysts had expected, on revenue of $5.68 billion versus a $5.55 billion consensus estimate, according to the company's earnings release filed with the SEC.
Net income for the quarter, which ended July 31, rose to $273.7 million from $215.3 million a year earlier. The company's fuel margin — the profit made on each gallon sold — expanded to 47.8 cents per gallon from 41.0 cents in the same period last year, a swing that accounted for much of the earnings upside.
Pizza and prepared food keep pulling in traffic
Beyond the fuel pumps, Casey's said prepared-food same-store sales rose 4.8%, driven in large part by whole-pizza traffic, while grocery and general-merchandise sales grew on stronger demand for non-alcoholic beverages. Total inside sales climbed 5.6% for the quarter, and the company credited favorable product mix and cost discipline for expanding margins inside the store as well as at the pump.
Chief executive Darren Rebelez pointed to the integration of the company's Fikes Wholesale acquisition as ahead of schedule and a contributor to the quarter's momentum, part of a newly rolled-out three-year strategic plan. Casey's also repurchased $45.6 million of its own shares during the quarter.
Guidance holds, but shares dip
Management reiterated its outlook for fiscal 2027, projecting EBITDA growth of 8% to 10% for the year and plans to open at least 120 new stores. Despite the across-the-board beat, Casey's shares slipped following the announcement, a reaction analysts attributed to how much of the growth had already been priced into the stock heading into the print, per a 24/7 Wall St. analysis of the results.
The quarter underscores how convenience-store operators have leaned on fuel margins and food-service upgrades to offset the slow structural decline in cigarette sales that has weighed on the category for years. With fuel prices now climbing again on Middle East supply disruptions, investors will be watching whether Casey's can sustain similar margins into the current quarter, or whether higher wholesale costs eventually squeeze the very fuel profits that powered this beat.