Casey’s General Stores’ second-quarter profit rose 15 per cent as the company continues to expand and enter new markets.
The convenience store retailer said it expects to add “at least” 150 stores in fiscal 2024, more than the originally planned 110. Casey’s, who built or acquired 59 stores in the quarter, recently entered Texas, its 17th state, with its acquisition of 22-store Lone Star Food Stores from W. Douglass Distributing Ltd. The acquisition closed in November.
In June, Casey’s unveiled a strategic growth plan that included a goal of adding 350 stores by the end of fiscal year 2026, with the expansion including both organic growth and acquisitions. The company’s net income rose 15 per cent to $158.8M, or $4.24 a share, for the quarter ended 31 October. Analysts expected earnings of $3.97 a share. Revenue rose two per cent to $4.06bn from $3.98bn a year earlier.
“Due to the hard work of our team, Casey’s delivered an outstanding second quarter highlighted by strong inside and fuel gross profit growth,” said Darren Rebelez, Chairman, President and CEO. “Inside same-store sales were driven by prepared food and dispensed beverage, with whole pies and bakery performing exceptionally well. Our fuel team continues to do an excellent job finding the right balance between gallon growth and gross profit margin, as evidenced by another strong fuel margin quarter while same-store gallons were flat.”
