Casey's Announces Third Quarter Results

Rhea-AI Summary

Casey's General Stores (CASY) reported its Q3 FY2025 financial results with flat diluted EPS of $2.33 and net income of $87.1 million compared to the previous year. EBITDA increased 11.4% to $242.4 million.

Inside same-store sales grew 3.7% year-over-year, with total inside gross profit up 14.3% to $573.1 million. Fuel performance showed same-store gallons up 1.8% with a margin of 36.4 cents per gallon, leading to a 17.4% increase in total fuel gross profit to $302.1 million.

The company operated 254 additional stores compared to the prior year, including the Fikes acquisition which incurred approximately $13 million in one-time deal and integration costs. Casey's maintains strong liquidity of $1.3 billion and has updated its FY2025 outlook, now expecting EBITDA to increase approximately 11%.

Positive

• EBITDA increased 11.4% to $242.4 million
• Inside same-store sales grew 3.7% with total inside gross profit up 14.3% to $573.1 million
• Total fuel gross profit increased 17.4% to $302.1 million
• Same-store labor hours reduced for 11th consecutive quarter
• Strong liquidity position of $1.3 billion

Negative

• Flat diluted EPS and net income compared to prior year
• Inside margin declined 40 basis points
• Operating expenses increased 18% due to store expansion and integration costs
• Higher interest expense from Fikes acquisition debt

Insights

Financial Analyst

Casey's Q3 results show balanced performance with mixed signals for investors. While diluted EPS remained flat at $2.33 and net income held steady at $87.1 million, the company delivered EBITDA growth of 11.4% to $242.4 million. The disparity between flat bottom-line metrics and growing EBITDA stems primarily from increased interest expenses related to the Fikes acquisition and higher depreciation from operating 254 additional stores.

Inside operations showed strength with same-store sales up 3.7% and total inside gross profit increasing 14.3% to $573.1 million. The prepared food segment performed particularly well, driving margins of 40.9%, though this represents a 40 basis point contraction year-over-year. Fuel operations delivered solid results with same-store gallons up 1.8% and total fuel gross profit increasing 17.4% to $302.1 million.

Operational efficiency is noteworthy with same-store labor hours decreasing for the eleventh consecutive quarter, helping to partially offset wage inflation. However, total operating expenses increased 18%, including $13 million in one-time Fikes deal and integration costs.

The updated FY2025 guidance projects EBITDA growth of approximately 11%, maintaining the previous same-store sales growth expectation of 3-5%. With $1.3 billion in available liquidity and commitment to the $0.50 quarterly dividend, Casey's financial position remains solid as it executes its expansion strategy.

ANKENY, Iowa--(BUSINESS WIRE)-- Casey’s General Stores, Inc. ("Casey's" or the "Company") (Nasdaq: CASY) one of the leading convenience store chains in the United States, today announced financial results for the three and nine months ended January 31, 2025.

Third Quarter Key Highlights

• Diluted EPS of $2.33, flat with the same period a year ago. Net income was $87.1 million, also flat with the prior year, and EBITDA¹ was $242.4 million, up 11.4%, from the same period a year ago.
• Inside same-store sales increased 3.7% compared to prior year, and 8.0% on a two-year stack basis, with an inside margin of 40.9%. Total inside gross profit increased 14.3% to $573.1 million compared to the prior year.
• Same-store fuel gallons were up 1.8% compared to prior year with a fuel margin of 36.4 cents per gallon. Total fuel gross profit increased 17.4% to $302.1 million compared to the prior year.
• Same-store operating expenses excluding credit card fees were up 3.2%, favorably impacted by a 2% reduction in same-store labor hours.

"Casey's delivered an excellent third quarter highlighted by strong sales growth both inside and outside the store,” said Darren Rebelez, Chairman, President and CEO. “Inside same-store sales were driven by the prepared food and dispensed beverage category, with hot sandwiches and bakery performing quite well. Our fuel team did a tremendous job achieving same-store gallon growth of 1.8% while maintaining a solid fuel margin. 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."

Earnings

	Three Months Ended January 31,						Nine Months Ended January 31,
	2025			2024			2025			2024
Net income (in thousands)	$	87,097		$	86,933		$	448,213		$	414,952
Diluted earnings per share	$	2.33		$	2.33		$	12.01		$	11.09
EBITDA (in thousands)	$	242,368		$	217,615		$	937,030		$	840,372

For the quarter, net income and diluted EPS were approximately flat while EBITDA was up compared to the same period a year ago. EBITDA was up primarily due to higher inside and fuel gross profit, partially offset by higher operating expenses from operating 254 additional stores, as well as one-time Fikes deal and integration costs of approximately $13 million. Net income and diluted EPS were flat due to higher interest expense related to debt taken on from the Fikes transaction as well as higher depreciation from operating more stores.

___________________________
1	EBITDA is reconciled to net income below.

Inside

	Three Months Ended January 31,								Nine Months Ended January 31,
		2025				2024				2025				2024
Inside sales (in thousands)	$	1,400,425			$	1,214,959			$	4,342,056			$	3,931,619
Inside same-store sales		3.7	%			4.1	%			3.1	%			4.1	%
Grocery and general merchandise same-store sales		3.3	%			2.8	%			2.6	%			3.3	%
Prepared food and dispensed beverage same-store sales		4.7	%			7.5	%			4.4	%			6.2	%
Inside gross profit (in thousands)	$	573,079			$	501,511			$	1,807,052			$	1,611,209
Inside margin		40.9	%			41.3	%			41.6	%			41.0	%
Grocery and general merchandise margin		34.2	%			33.9	%			35.1	%			34.0	%
Prepared food and dispensed beverage margin		57.8	%			59.6	%			58.3	%			58.9	%

Total inside sales were up 15.3% for the quarter. Same-store inside sales of 3.7% were driven by strong performance in the prepared food and dispensed beverage category, including hot sandwiches and bakery as well as non-alcoholic beverages in the grocery and general merchandise category. Inside margin was down 40 basis points compared to the same quarter a year ago, driven primarily by the impact of the stores from the Fikes acquisition as well as a coffee promotion to feature new flavor profiles.

Fuel²

	Three Months Ended January 31,								Nine Months Ended January 31,
		2025				2024				2025				2024
Fuel gallons sold (in thousands)		829,761				689,251				2,378,211				2,133,680
Same-store gallons sold		1.8	%			(0.4	)%			0.3	%			—	%
Fuel gross profit (in thousands)	$	302,058			$	257,246			$	928,858			$	863,059
Fuel margin (cents per gallon, excluding credit card fees)		36.4	¢			37.3	¢			39.1	¢			40.4	¢

For the quarter, total fuel gallons sold increased 20.4% compared to the prior year due to the store count increase as well as same-store gallons which were up 1.8% versus the prior year. The Company’s total fuel gross profit was up 17.4% versus the prior year, while the increase in gallons sold was partially offset by a decrease in fuel margin, driven primarily by the impact of the stores from the Fikes acquisition. The Company sold $2.6 million in renewable fuel credits (RINs) in the third quarter, a decrease of $0.8 million from the same quarter in the prior year.

Operating Expenses

	Three Months Ended January 31,								Nine Months Ended January 31,
		2025				2024				2025				2024
Operating expenses (in thousands)	$	670,200			$	568,908			$	1,889,353			$	1,709,466
Credit card fees (in thousands)	$	61,234			$	51,977			$	187,318			$	175,879
Same-store operating expenses excluding credit card fees		3.2	%			2.5	%			1.8	%			2.5	%

Operating expenses increased approximately 18% during the third quarter. Operating 254 more stores than prior year accounted for approximately 14% of the increase, including one-time deal and integration costs of approximately $13 million from the Fikes acquisition. Same-store employee expense contributed to approximately 1% of the increase, as the increases in labor rates were partially offset by a reduction in same-store labor hours.

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2	Fuel category does not include wholesale fuel activity, which is included in Other.

Expansion

	Store Count
April 30, 2024	2,658
New store construction	21
Acquisitions	228
Acquisitions not opened	(1	)
Prior acquisitions opened	1
Closed	(14	)
January 31, 2025	2,893

Liquidity
At January 31, 2025, the Company had approximately $1.3 billion in available liquidity, consisting of approximately $395 million in cash and cash equivalents on hand and approximately $900 million in available borrowing capacity on existing lines of credit.

Share Repurchase
During the third quarter, the Company did not repurchase any shares. The Company has approximately $295 million remaining under its existing share repurchase authorization.

Dividend
At its March meeting, the Board of Directors approved a quarterly dividend of $0.50 per share. The dividend is payable May 15, 2025, to shareholders of record on May 1, 2025.

Fiscal 2025 Outlook
Casey’s is updating the 2025 outlook as follows: For fiscal year 2025, the Company now expects EBITDA to increase approximately 11%. The purchase of property and equipment is expected to be approximately $500 million.

Casey’s is not updating its outlook for the following metrics: For Casey’s total fiscal 2025 year outlook the Company expects same-store inside sales to increase approximately 3% to 5% with inside margin to be comparable to the prior year. The Company expects same-store fuel gallons sold to be negative 1% to positive 1%. The Company expects total operating expenses to increase 11% to 13% for the fiscal year, including approximately $25 to $30 million in one-time deal and integration costs related to the Fikes acquisition, while same-store operating expense 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. Depreciation and amortization is expected to be approximately $410 million. The tax rate is expected to be approximately 23% to 25% for the fiscal year. Casey’s expects to add approximately 270 stores for the fiscal year.

Casey’s General Stores, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Amounts in thousands, except share and per share amounts) (Unaudited)
	Three Months Ended January 31,						Nine Months Ended January 31,
	2025			2024			2025			2024
Total revenue	$	3,903,633		$	3,329,247		$	11,948,141		$	11,262,898
Cost of goods sold (exclusive of depreciation and amortization, shown separately below)		2,991,065			2,542,724			9,121,758			8,713,060
Operating expenses		670,200			568,908			1,889,353			1,709,466
Depreciation and amortization		105,203			88,950			296,204			257,453
Interest, net		29,415			14,146			56,035			38,947
Income before income taxes		107,750			114,519			584,791			543,972
Federal and state income taxes		20,653			27,586			136,578			129,020
Net income	$	87,097		$	86,933		$	448,213		$	414,952
Net income per common share
Basic	$	2.35		$	2.34		$	12.08		$	11.15
Diluted	$	2.33		$	2.33		$	12.01		$	11.09
Basic weighted average shares		37,125,570			37,100,143			37,112,506			37,210,007
Plus effect of stock compensation		236,486			235,940			213,474			199,531
Diluted weighted average shares		37,362,056			37,336,083			37,325,980			37,409,538

Casey’s General Stores, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Dollars in thousands) (Unaudited)
	January 31, 2025			April 30, 2024
Assets
Current assets
Cash and cash equivalents	$	394,815		$	206,482
Receivables		166,231			151,793
Inventories		482,101			428,722
Prepaid and other current assets		39,585			25,791
Income taxes receivable		16,924			17,066
Total current assets		1,099,656			829,854
Operating lease right-of-use assets, net		420,069			115,819
Other assets, net of amortization		118,962			79,740
Goodwill		1,240,598			652,663
Property and equipment, net of accumulated depreciation of $3,062,910 at January 31, 2025 and $2,883,925 at April 30, 2024		5,340,893			4,669,357
Total assets	$	8,220,178		$	6,347,433
Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt and finance lease obligations	$	243,755		$	53,181
Accounts payable		585,865			569,527
Accrued expenses and current portion of operating lease liabilities		366,018			330,758
Total current liabilities		1,195,638			953,466
Long-term debt and finance lease obligations, net of current maturities		2,439,038			1,582,758
Deferred income taxes		638,197			596,850
Operating lease liabilities, net of current portion		437,155			111,100
Insurance accruals, net of current portion		31,240			30,046
Other long-term liabilities		61,594			57,832
Total liabilities		4,802,862			3,332,052
Total shareholders’ equity		3,417,316			3,015,381
Total liabilities and shareholders’ equity	$	8,220,178		$	6,347,433

Casey’s General Stores, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited)
	Nine months ended January 31,
		2025				2024
Cash flows from operating activities:
Net income	$	448,213			$	414,952
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		296,204				257,453
Amortization of debt issuance costs		1,132				833
Change in excess replacement cost over LIFO inventory valuation		9,358				7,786
Share-based compensation		35,489				29,349
Loss on disposal of assets and impairment charges		8,993				892
Deferred income taxes		51,204				48,213
Changes in assets and liabilities:
Receivables		12,067				(15,146	)
Inventories		(8,129	)			(33,762	)
Prepaid and other current assets		(11,287	)			(7,839	)
Accounts payable		(78,246	)			(93,480	)
Accrued expenses		(5,617	)			(10,905	)
Income taxes		276				2,335
Other, net		(2,661	)			3,919
Net cash provided by operating activities		756,996				604,600
Cash flows from investing activities:
Purchase of property and equipment		(325,499	)			(325,726	)
Payments for acquisition of businesses, net of cash acquired		(1,211,567	)			(296,809	)
Proceeds from sales of assets		14,529				20,351
Net cash used in investing activities		(1,522,537	)			(602,184	)
Cash flows from financing activities:
Proceeds from long-term debt		1,100,000				—
Payments of long-term debt and finance lease obligations		(60,981	)			(48,364	)
Payments of debt issuance costs		(5,292	)			—
Payments of cash dividends		(53,745	)			(46,975	)
Repurchase of common stock and payment of related excise taxes		(734	)			(89,768	)
Tax withholdings on employee share-based awards		(25,374	)			(18,297	)
Net cash provided by (used in) financing activities		953,874				(203,404	)

Net increase (decrease) in cash and cash equivalents		188,333				(200,988	)
Cash and cash equivalents at beginning of the period		206,482				378,869
Cash and cash equivalents at end of the period	$	394,815			$	177,881

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
	Nine months ended January 31,
	2025			2024
Cash paid during the period for:
Interest, net of amount capitalized	$	52,565		$	43,316
Income taxes, net		84,506			72,037
Noncash activities:
Purchased property and equipment in accounts payable		69,299			82,785
Right-of-use assets obtained in exchange for new finance lease liabilities		12,590			14,035
Right-of-use assets obtained in exchange for new operating lease liabilities		315,124			12,613

Summary by Category (Amounts in thousands)
Three Months Ended January 31, 2025	Prepared Food & Dispensed Beverage				Grocery & General Merchandise				Fuel				Other				Total
Revenue	$	397,151			$	1,003,274			$	2,366,822			$	136,386			$	3,903,633
Gross profit	$	229,535			$	343,544			$	302,058			$	37,431			$	912,568
		57.8	%			34.2	%			12.8	%			27.4	%			23.4	%
Fuel gallons sold										829,761
Three Months Ended January 31, 2024
Revenue	$	349,411			$	865,548			$	2,051,674			$	62,614			$	3,329,247
Gross profit	$	208,327			$	293,184			$	257,246			$	27,766			$	786,523
		59.6	%			33.9	%			12.5	%			44.3	%			23.6	%
Fuel gallons sold										689,251

Summary by Category (Amounts in thousands)
Nine Months Ended January 31, 2025	Prepared Food & Dispensed Beverage				Grocery & General Merchandise				Fuel				Other				Total
Revenue	$	1,220,107			$	3,121,949			$	7,337,096			$	268,989			$	11,948,141
Gross profit	$	711,034			$	1,096,018			$	928,858			$	90,473			$	2,826,383
		58.3	%			35.1	%			12.7	%			33.6	%			23.7	%
Fuel gallons sold										2,378,211
Nine Months Ended January 31, 2024
Revenue	$	1,104,705			$	2,826,914			$	7,125,485			$	205,794			$	11,262,898
Gross profit	$	650,852			$	960,357			$	863,059			$	75,570			$	2,549,838
		58.9	%			34.0	%			12.1	%			36.7	%			22.6	%
Fuel gallons sold										2,133,680

Prepared Food & Dispensed Beverage											Prepared Food & Dispensed Beverage
Same-store Sales											Margin
	Q1		Q2		Q3		Q4		Fiscal Year			Q1		Q2		Q3		Q4		Fiscal Year
F2025	4.4%		5.2%		4.7%						F2025	58.3%		58.7%		57.8%
F2024	5.9		6.1		7.5		8.8%		6.8%		F2024	58.2		59.0		59.6		58.1%		58.7%
F2023	8.4		10.5		5.0		4.9		7.1		F2023	55.6		56.7		57.3		56.8		56.6

Grocery & General Merchandise											Grocery & General Merchandise
Same-store Sales											Margin
	Q1		Q2		Q3		Q4		Fiscal Year			Q1		Q2		Q3		Q4		Fiscal Year
F2025	1.6%		3.6%		3.3%						F2025	35.4%		35.6%		34.2%
F2024	5.2		1.7		2.8		4.3%		3.5%		F2024	34.1		34.0		33.9		34.4%		34.1%
F2023	5.5		6.9		5.8		7.1		6.3		F2023	33.9		33.3		34.0		33.0		33.6

Fuel Gallons											Fuel Margin
Same-store Sales											(Cents per gallon, excluding credit card fees)
	Q1		Q2		Q3		Q4		Fiscal Year			Q1		Q2		Q3		Q4		Fiscal Year
F2025	0.7%		(0.6)%		1.8%						F2025	40.7¢		40.2¢		36.4¢
F2024	0.4		—		(0.4)		0.9%		0.1%		F2024	41.6		42.3		37.3		36.5¢		39.5¢
F2023	(2.3)		0.3		(0.5)		—		(0.8)		F2023	44.7		40.5		40.7		34.6		40.2

RECONCILIATION OF NET INCOME TO EBITDA

We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. EBITDA is not considered to be a GAAP measure, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. This measure has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

We believe EBITDA is useful to investors in evaluating our operating performance because securities analysts and other interested parties use this calculation as a measure of financial performance and debt service capabilities, and it is regularly used by management for internal purposes including our capital budgeting process, evaluating acquisition targets, assessing performance, and awarding incentive compensation.

Because non-GAAP financial measures are not standardized, EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of this non-GAAP financial measure with those used by other companies.

The following table contains a reconciliation of net income to EBITDA for the three and nine months ended January 31, 2025 and 2024:

(in thousands)	Three Months Ended January 31,						Nine Months Ended January 31,
	2025			2024			2025			2024
Net income	$	87,097		$	86,933		$	448,213		$	414,952
Interest, net		29,415			14,146			56,035			38,947
Federal and state income taxes		20,653			27,586			136,578			129,020
Depreciation and amortization		105,203			88,950			296,204			257,453
EBITDA	$	242,368		$	217,615		$	937,030		$	840,372

NOTES:

• Gross Profit is defined as revenue less cost of goods sold (exclusive of depreciation and amortization)
• Inside is defined as the combination of grocery and general merchandise and prepared food and dispensed beverage

This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to the potential impact the Fikes transaction, expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, and performance at our stores. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any results expressed or implied by these forward-looking statements, including but not limited to the execution of our strategic plan, the integration and financial performance of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges and disruptions, the impact and duration of the conflict in Ukraine or other geopolitical disruptions, as well as other risks, uncertainties and factors which are described in the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website. Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey’s disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events, or otherwise.

Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on March 12, 2025. The call will be broadcast live over the Internet at 7:30 a.m. CDT. To access the call, go to the Events and Presentations section of our website at https://investor.caseys.com/events-presentations. No access code is required. A webcast replay of the call will remain available in an archived format on the Events and Presentations section of our website at https://investor.caseys.com/events-presentations for one year after the call.

CASY-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20250311631674/en/

Investor Relations:

Brian Johnson (515) 446-6587

Media Relations:

Katie Petru (515) 446-6772

Source: Casey’s General Stores

FAQ

What were Casey's (CASY) key financial metrics for Q3 2025?

Casey's reported Q3 2025 EPS of $2.33, net income of $87.1 million (both flat YoY), and EBITDA of $242.4 million (up 11.4%).

How did Casey's (CASY) same-store sales perform in Q3 2025?

Inside same-store sales increased 3.7% YoY and 8.0% on a two-year stack basis, with an inside margin of 40.9%.

What is Casey's (CASY) updated EBITDA guidance for fiscal 2025?

Casey's now expects EBITDA to increase approximately 11% for fiscal year 2025.

How much did Casey's (CASY) fuel business grow in Q3 2025?

Total fuel gallons sold increased 20.4%, with same-store gallons up 1.8% and total fuel gross profit up 17.4% to $302.1 million.

What is Casey's (CASY) current dividend and payment schedule?

Casey's approved a quarterly dividend of $0.50 per share, payable May 15, 2025, to shareholders of record on May 1, 2025.