Casey’s profits rise as gas station food sales drive fourth quarter revenue

Casey’s General Stores, a Midwestern gas and convenience chain, experienced a significant surge in its stock price after releasing a robust earnings report following the closing bell on Monday. The company reported sales of $3.99 billion, surpassing analysts’ estimates of $3.93 billion. A major driving force behind Casey’s impressive performance continues to be its food sales, a trend that has been observed in the convenience industry for some time.

The inside sales at Casey’s, which include items such as sandwiches, Monster energy drinks, and branded merchandise like hats, recorded a gross profit of $582.4 million. This figure is notably higher than the latest quarterly earnings of Domino’s, highlighting the strength of Casey’s food offerings. Despite being the operator of the fifth-largest US pizza chain by store count, Casey’s success is not solely attributed to its pizza sales but also to its diverse food options.

Looking ahead, Casey’s anticipates an increase in inside same-store sales of up to 5% in fiscal year 2026, with a targeted profit margin of 41%. This outlook underscores the company’s confidence in sustaining its growth trajectory, particularly in the food segment. In contrast, fuel sales remain a lower-margin business for Casey’s, with same-store fuel sales up only 0.1% for the year that just ended.

The continued success of Casey’s General Stores reflects a larger industry trend where convenience stores are increasingly relying on food sales to drive profits. This shift in consumer behavior towards purchasing food items from gas stations has been a boon for chains like Casey’s, allowing them to diversify their offerings and capture a larger share of the market. By focusing on providing a variety of food options, convenience stores have managed to attract customers beyond those simply looking to refuel their vehicles.

As Casey’s looks towards the future, its strategic emphasis on expanding its food offerings while maintaining a strong profit margin sets it apart in the competitive convenience store landscape. With its robust earnings report and optimistic outlook for the coming fiscal year, Casey’s General Stores continues to demonstrate its ability to adapt to changing consumer preferences and drive growth through innovative business strategies.