Casey’s General Stores, the fast-growing convenience store firm that has become a strong competitor of Love’s stores in Oklahoma and surrounding states reported first quarter earnings showing contined big growth.
The Iowa-based chain reported a 6% gain in net income which totaled $180 million and EBITDA of $346 which was up 9% from a year earlier. Its earnings per share rose 7% at $4.83.
“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.
He said inside same-store sales grew 2.3% from the previous year and had a total gross profit increase 10.4% to $614.3 million. Fuel sales grew 0.7% with total fuel gross profit up 5.9% to $314.5 million.
Under its previously communicated fiscal 2025 outlook, the Company expects EBITDA to increase at least 8%. The Company expects inside same-store sales to increase 3% to 5% and inside margin comparable to fiscal 2024. The Company expects same-store fuel gallons sold to be between negative 1% to positive 1%. Total operating expenses are expected to increase approximately 6% to 8%.
Casey’s quarterly report came as the firm is anticipating the close of its recent acquisition of Fikes Wholesale, Inc., a deal that includes 198 CEFCO convenience stores.
The company indicated its operating expenses increased about 9% during its first quarter, largely because it operated 138 more stores than a year earlier. Casey’s opereated 2,674 stores at the end of July and had 10 new stores under construction. It also had liquidity of $1.2 billion including $305 million cash on hand.
Under its previously communicated fiscal 2025 outlook, the Company expects EBITDA to increase at least 8%. The Company expects inside same-store sales to increase 3% to 5% and inside margin comparable to fiscal 2024. The Company expects same-store fuel gallons sold to be between negative 1% to positive 1%. Total operating expenses are expected to increase approximately 6% to 8%. Net interest expense is expected to be approximately $56 million. Depreciation and amortization is expected to be approximately $390 million and the purchase of property and equipment is expected to be approximately $575 million. The tax rate is expected to be approximately 24% to 26% for the year.