By Noelle Riddle
Casey’s General Stores Inc. released its financial results for the three and six months ending October 31, 2024.
Casey’s saw same-store sales increase by 4.0% compared to the prior year, and 7.1% on a two-year stack basis, with an inside margin of 42.2%. Total inside gross profit increased 12.0% to $619.7 million compared to the prior year, according to the earnings report.
Same-store fuel gallons were down 0.6% compared to prior year with a fuel margin of 40.2 cents per gallon. Total fuel gross profit increased 1.1% to $312.3 million compared to the prior year.
Casey’s same-store operating expenses, excluding credit card fees, were up 2.3%, favorably impacted by a 1% reduction in same-store labor hours.
“Casey's delivered a strong second quarter highlighted by robust inside gross profit growth,” said Darren Rebelez, board chair, president and CEO. “Inside same-store sales were driven by the prepared food and dispensed beverage category, with hot sandwiches and cold dispensed beverage performing exceptionally well.”
“Our fuel team continues to balance volume and margin as they achieved over 40 cents per gallon fuel margin while outpacing the relevant geographic market in same-store fuel gallons,” Rebelez continued. “The operations team continues to focus on efficiency while serving our guests, as we reduced same-store labor hours for the tenth consecutive quarter.”
Subsequent to quarter end, on November 1, 2024, Casey's closed the previously announced Fikes Wholesale (‘Fikes’) transaction, acquiring 198 CEFCO Convenience Stores. “We are excited to have closed on the Fikes acquisition and we want to welcome the team to the Casey’s family,” Rebelez said.
Casey’s said it is updating its 2025 outlook primarily due to the acquisition of Fikes.
For the second half of fiscal 2025 specifically related to the Fikes transaction, Casey’s said it expects to incur an additional $15 to $20 million in one-time deal and integration costs, primarily in the third quarter.
Total operating expenses are expected to increase 11% to 13% for the fiscal year, including approximately $25 to $30 million in one-time deal and integration costs, while same-store operating expenses excluding credit card fees are expected to only increase 2% for the year. Net interest expense is expected to be approximately $90 million for the year.
Casey’s said it expects to add approximately 270 stores for the fiscal year.
Learn more about 2024 industry performance at the 2025 NACS State of the Industry Summit, April 8-10 in Dallas. It is the only event that delivers insights—not just facts—on the latest financial, operational, categorical, regional market and consumer trends in convenience.
Noelle Riddle is the editor/writer of NACS Daily.