ANKENY, Iowa—Casey’s, one of the leading convenience store chains in the United States, announced fiscal fourth-quarter and year-end financial results that showed the company’s resilience in the face of the pandemic and increased profits compared with the year-ago period.
“Casey’s achieved remarkable results throughout the year in one of the most difficult retail environments of our lifetime," said Darren Rebelez, president and CEO.
Inside same-store sales grew 12.8% for the fiscal fourth quarter ended April 30, 2021, as store traffic picked up, Casey’s reported. Sales were driven by customer demand for pizza slices, dispensed beverages and bakery products. Inside margin improved 100 basis points to 39.9% compared with the year-ago quarter, Casey’s said, citing its strategic sourcing initiatives and previous merchandise resets, along with a favorable mix shift of private brands, packaged beverage and prepared foods.
Fuel same-store gallons rose 6.4%, compared with the year-ago quarter. Fuel margin stood at 33 cents a gallon, down from 40.8 cents a gallon in the year-earlier period. Casey’s said it did not sell RINs during the fourth quarter, compared with RIN sales of $2.6 million in the year-ago period.
Some of the chain’s fiscal 2021 financial highlights include:
- Annual digital sales increased 96% compared with the prior year, with 3.6 million Casey’s Rewards members at fiscal year-end.
- Casey's generated strong cash flow, ending the year with a healthy balance sheet.
- Casey's recently closed on the Buchanan Energy acquisition and anticipates closing on the previously disclosed Circle K acquisition this month.
“The entire Casey’s team proved themselves resilient in spite of these challenges and made excellent progress on our long-term strategic plan while keeping our people and communities safe,” Rebelez said. “We have great momentum behind our digital engagement efforts, our private brand products have resonated with our guests, our prepared foods business is regaining traction and we are in the process of welcoming two large acquisitions to the Casey's family. We are now poised to emerge from the pandemic an even stronger company.”
Casey’s expects same-store fuel and inside sales to increase by mid-single-digit percentages. Total operating expenses are expected to increase by mid-teen percentages, driven primarily by adding about 200 units during fiscal 2022, as well as expenses related to adding back operating hours to the stores and expected wage pressures. Depreciation and amortization is expected to be roughly $300 million, interest expense is expected to be about $50 million, and the tax rate is expected to be about 26%. The company plans to add $500 million in property and equipment in the fiscal year, including acquisition remodels.
NACS Magazine profiled Casey’s and its growth strategy in the May 2021 issue.
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