Executive Summary
Casey’s delivered a robust start to fiscal 2026, underscoring the strength of its 3-year strategic plan. Quarterly revenue reached $4.57 billion, up 11.5% year over year, propelled by higher inside sales and fuel gallons sold, and supported by a broad store base that expanded the business by approximately 221 stores versus the prior year. Net income of $215.4 million and EBITDA of $414.3 million rose about 19–20% year over year, with operating income up 21% and gross profit up 16.5%. Management highlighted traffic gains in prepared foods and dispensed beverages, margin expansion in grocery/general merchandise, and a disciplined fuel strategy that maintained a $0.41 per gallon margin despite a drag from the acquired CEFCO network. The quarter also featured strategic catalysts: continued progress on Fuel 3.0 (approximately 8.8% of total fuel procured via the program, with ~3% of total fuel on base fuel) and ongoing synergies from the CEFCO integration, including grocery and prepared foods improvements. Casey’s reiterated its 3-year plan goals, including EBITDA growth of 8–10% and roughly 4–5% annual unit growth, with capital allocation prioritized EBITDA and ROIC-accretive investments, buybacks, and a stable dividend. The company indicated that annual guidance would be updated on the Q2 call, with expectations for mid-teens op-ex growth in Q2 in light of Fikes-related comparisons and ongoing seasonality. Overall, the earnings call conveyed confidence in sustaining momentum into the second half of the year, supported by the strategic mix of pricing, product innovation, and geographic expansion.
Key Performance Indicators
QoQ: 119.06% | YoY:19.51%
QoQ: 118.87% | YoY:19.34%
Key Insights
Revenue: $4.567B, YoY +11.5%; QoQ data not disclosed in the release for exact sequential change. Gross profit: $1.003B, YoY +5.05%; QoQ +22.59%; Gross margin: 21.97%; Operating income: $305.31M, YoY +21.46%; QoQ +96.25%; Operating margin: 6.68%; Net income: $215.36M, YoY +19.51%; QoQ +119.06%; Net margin: 4.72%; EBITDA: $414.27M, YoY +~19.8%; EBITDA margin (EBITDA / revenue): ~9.07%; EPS (diluted): $5.77; basic EPS: $5.80; Same-store sales (SSS) up 4.3% (6.7% on 2-year stack); Inside same-store ...
Financial Highlights
Revenue: $4.567B, YoY +11.5%; QoQ data not disclosed in the release for exact sequential change. Gross profit: $1.003B, YoY +5.05%; QoQ +22.59%; Gross margin: 21.97%; Operating income: $305.31M, YoY +21.46%; QoQ +96.25%; Operating margin: 6.68%; Net income: $215.36M, YoY +19.51%; QoQ +119.06%; Net margin: 4.72%; EBITDA: $414.27M, YoY +~19.8%; EBITDA margin (EBITDA / revenue): ~9.07%; EPS (diluted): $5.77; basic EPS: $5.80; Same-store sales (SSS) up 4.3% (6.7% on 2-year stack); Inside same-store margin: 41.9%; Prepared foods and dispensed beverages margin: 58%; Grocery/general merchandise margin: 35.9%; Fuel margin: $0.41/gal; Same-store gallons: +1.7%; Cheese cost: ~flat to slightly favorable (approx. 0–10 bps YoY impact); CEFCO drag on prepared foods ~110 bps; Store count: +221 vs year-ago; Liquidity: $1.4B available; Debt-to-EBITDA: 1.8x; Free cash flow: $262M; Cash taxes: reduced via One Big Beautiful Bill Act; Dividend: $0.57 per share quarterly; Share repurchases: ~$31M in Q1; Capex: $110M; FCF conversion: $262M; FCF yield indicators and leverage metrics discussed on the call.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.57B |
11.45% |
14.38% |
| Gross Profit |
1.00B |
5.05% |
22.59% |
| Operating Income |
305.31M |
21.46% |
96.25% |
| Net Income |
215.36M |
19.51% |
119.06% |
| EPS |
5.80 |
19.34% |
118.87% |
Management Commentary
- Strategy and execution: Casey’s reiterated a disciplined path under its 3-year plan, emphasizing EBITDA growth, store- and revenue-building initiatives, and ROIC-centric capital allocation. The company highlighted the progression of Fuel 3.0 and CEFCO integration as key levers of margin and mix improvement. - Traffic and mix: Management attributed gains to stronger in-store traffic (especially in prepared foods and dispensed beverages) and favorable mix within grocery/general merchandise (energy drinks, nicotine alternatives). The balance of price and volume contributed to ~4.5% total growth in same-store performance, with price-driven strength concentrated in tobacco. - Fuel economics: The fuel program continues to deliver volume and margin gains, aided by steady pricing discipline and the attraction of prepared foods to fuel purchases. Fuel margins rose to $0.41/gal, with fuel gallons up 18% YoY but a ~0.015/gal drag from CEFCO during the period. - CEFCO integration: Drag from CEFCO’s prepar ed foods remained a drag (~110 bps) but was being mitigated via assortment cleanup, promotional alignment, and cost-management; significant upside remains as kitchens are converted and the full assortment is rolled out. - Cheese hedging: Cheese costs were approximately flat YoY, with ~70% of forward cheese needs locked for the remainder of the year, providing cost visibility. - Balance sheet and capital allocation: The company maintains strong liquidity (~$1.4B) and a leverage-friendly stance (debt-to-EBITDA ~1.8x). Share repurchases (~$31M) and a $0.57 quarterly dividend were reaffirmed as core capital-allocation priorities. - Guidance posture: Management will update full-year guidance on the Q2 call, with expectations for Q2 op-ex to be up in the mid-teens due to seasonality and the Fikes impact; no major change to the longer-term growth plan, signaling confidence in the mid-to-late-year cadence. Quotes: “For the combined business, it's about 8.8% of our total fuel procured… 3% of our fuel on the base business is being procured through Fuel 3.0. So making good progress.” (Darren Rebelez) and “We have about 1.5% in traffic increase and then about 3% coming from price overall. So that will get you to roughly your 4.5%.” (Darren Rebelez) – highlighting price-volume dynamics and Fuel 3.0 progression.
"For the combined business, it's about 8.8% of our total fuel procured and I would say that the majority of that is coming from the Fikes acquisition. ... We're about 3% of our fuel on the base business is being procured through Fuel 3.0. So making good progress."
— Darren Rebelez
"So in the quarter, it was obviously really close to prior year. I mean we were a little less than 10 basis points difference on a year-over-year basis from a cheese cost perspective. As we sit here today, we are about 70%, 7-0 percent locked on our forward cheese requirements for the remainder of this fiscal year. So Q2, Q3 and Q4 are all right around 70% locked."
— Stephen Bramlage
Forward Guidance
- Guidance posture: No new full-year guidance is provided in Q1; management plans to update guidance on the Q2 earnings call as seasonally largest period passes. - Near-term cadence: Q2 is expected to be more visible with roughly 7 months into the fiscal year; management reiterated that the seasonality profile is unchanged and that Fikes’ prior-year impact creates a pronounced first-half delta versus the second half. - Margin trajectory: Core prepared foods margins improved, helped by procurement gains and the growth of high-margin subcategories like whole pies. The 110 bps drag from CEFCO is expected to compress as kitchens are remodeled and the full Casey’s assortment is deployed. - Capex and synergy realization: The CEFCO plan targets $45M in synergies, with more meaningful SG&A and fuel synergies realized earlier; the majority of kitchen-related synergies are anticipated to accrue in the second half of the fiscal year and beyond as remodeling proceeds. - M&A backdrop: The company sees normal M&A activity in small deals and ongoing discussions around larger-scale opportunities; execution risk remains balanced by a disciplined governance framework. - Key factors to monitor: (1) the pace of CEFCO remodeling and gross-margin uplift in the converted stores; (2) the evolution of Fuel 3.0 share and sustainable fuel/dispensing margins; (3) commodity hedging, especially cheese; (4) consumer dynamics and discretionary spending in Casey’s footprint; (5) seasonality and the impact of Fikes comparables in the first half vs. the second half. Overall, investors should monitor EBITDA progression toward the 8–10% target, unit growth cadence (4–5% annually), and the effectiveness of capital allocation in driving ROIC.