Casey's General Stores Hits Record Highs In Q3 FY24 With Impressive Inside And Fuel Sales Performance

Caseys General Stores, Inc. CASY shares are trading higher premarket on Wednesday after the company reported third-quarter FY24 results on Tuesday.

Revenue of $3.90 billion beat the consensus of $3.73 billion.

Inside same-store sales rose by 3.7% year-over-year (Y/Y) and 8.0% on a two-year stacked basis, with an inside margin of 40.9%. They were driven by strong performance in the prepared food and dispensed beverage categories, with hot sandwiches and bakery items performing particularly well.

Same-store fuel volumes increased by 1.8% Y/Y, with a fuel margin of 36.4 cents per gallon.

Total inside gross profit grew 14.3% Y/Y to $573.1 million, and fuel gross profit rose 17.4% Y/Y to $302.1 million.

EBITDA rose 11.4% Y/Y to $242.4 million, aided by higher inside and fuel gross profit. EPS of $2.33 exceeded the street view of $2.20.

As of January 31, 2025, the company had around $395 million in cash and cash equivalents and about $900 million in available borrowing capacity on existing credit lines.

Buyback: In the third quarter, the company did not repurchase any shares, with around $295 million remaining under its existing share repurchase authorization.

Dividend: The board of directors approved a quarterly dividend of $0.50 per share, payable May 15, 2025, to shareholders of record on May 1, 2025.

Darren Rebelez, chairman, president and CEO said, ”Total fuel gallons sold were up 20.4% while total inside sales rose 15.3% primarily due to unit growth, including the Fikes acquisition. The operations team’s focus on serving our guests efficiently is paying off, as we reduced same-store labor hours for the eleventh consecutive quarter.”

Outlook: Casey's now projects a roughly 11% increase in EBITDA for 2025 and anticipates adding around 270 stores during the fiscal year, with the purchase of property and equipment expected to be about $500 million.

For FY25, the company expects same-store inside sales to grow by approximately 3% to 5%, with inside margins remaining similar to the prior year.

Same-store fuel gallons sold are projected to range from a decline of 1% to an increase of 1%.

Investors can gain exposure to the stock via Invesco Dorsey Wright Consumer Staples Momentum ETF PSL and VictoryShares THB Mid Cap ETF MDCP.

Price Action: CASY shares are up 3.25% at $391.00 premarket at the last check Wednesday.

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