Casey’s General Stores Inc. is working on closing the “highly strategic Fikes acquisition,” and looking forward into welcoming their team to the Casey’s family, Casey’s Chairman, President and CEO Darren Rebelez said.
The Ankeny, Iowa-based convenience-store chain reported its first-quarter financial results Wednesday for the three months ended July 31.
Casey’s reported net income was $180 million for the quarter, up 6% from the same period a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $346 million, up 9% from the same period a year ago.
- Casey’s General Stores is No. 3 on CSP’s 2024 Top 202 ranking of U.S. c-store chains by store count. CEFCO is No. 37.
“Casey's started the fiscal year off on the right foot and delivered another solid quarter highlighted by strong inside gross profit growth,” Rebelez said. “Inside same-store sales were driven by prepared food and dispensed beverage, with hot sandwiches and bakery performing exceptionally well. Our fuel team continues to balance volume and margin as they delivered positive same-store fuel gallons while also achieving over 40 cents per gallon fuel margin. The operations team continues to find efficiencies as we reduced same-store labor hours for the ninth consecutive quarter.”
Rebelez was named CSP’s 2024 Retail Leader of the Year
Other highlights from the latest earnings period include:
- Inside same-store sales increased 2.3% compared to prior year, and 7.9% on a two-year stack basis.
- Total inside gross profit increased 10.4% to $614.3 million compared to the prior year.
- Same-store fuel gallons were up 0.7% compared to prior year, with a fuel margin of 40.7 cents per gallon. Total fuel gross profit increased 3.9% to $314.5 million compared to the prior year.
- Same-store operating expenses, excluding credit card fees, were up 0.7%.
- The Fikes Wholesale Inc., acquisition, with 198 CEFCO convenience stores, is expected to close by the end of the calendar year.
- Casey’s total store count is up to 2,674 c-stores. It added 10 new construction stores, nine acquired stores and closed three stores in the last quarter.
Casey’s is not updating its previously communicated fiscal 2025 outlook until after the closing of the Fikes transaction, except for store growth, which is now expected to be about 270 units in fiscal 2025.
On July 26, Casey’s announced it had agreed to acquire Temple, Texas-based Fikes Wholesale Inc., owner of CEFCO Convenience Stores, in an all-cash transaction for $1.145 billion. The purchase price includes tax benefits valued at approximately $165 million for a net after-tax purchase price of $980 million. Casey’s acquisition of Fikes will include 198 retail stores and a dealer network.
Casey’s General Stores operates its convenience stores in the greater Midwestern states under the Casey’s and GoodStop brands and in Texas under the Lone Star Food Stores brand. The company is the third-largest convenience-store retailer, the fourth-largest holder of liquor licenses and the fifth-largest pizza chain in the United States.
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