Casey's General Stores, Inc. (CASY) Earnings & Analysis

Latest quarter

Casey’s reported Q1 FY2027 revenue of $5.7 billion, up 24.3% from $4.6 billion a year earlier. The company reported revenue that was 0.43% above the consensus of $5.7 billion. Adjusted EPS, as the consensus counts it, was $7.37, 11.7% above the $6.60 consensus and up 27.7% from diluted EPS of $5.77 a year earlier.

The filing said prepared food and dispensed beverage same-store sales increased 4.8%, led by traffic and whole-pizza sales, while grocery and general merchandise same-store sales rose 2.7%, primarily on non-alcoholic beverages. Retail fuel revenue increased as the average retail fuel price per gallon rose and gallons sold increased. Casey’s said same-store fuel gallons sold decreased 0.3%.

The filing reported gross margin of 21.8%, compared with 24.4% a year earlier, while operating margin was 6.50%, compared with 6.68%. Free cash flow was $193.3 million, down 30.9% from $279.9 million; the company attributed the decline largely to planned capital spending for acquired-store remodels.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Darren Rebelez said inside same-store sales increased 3.20% in the quarter, with prepared food and dispensed beverage sales supported primarily by traffic and minimal pricing. He said whole-pizza units rose nearly double digits, while energy drinks and nicotine alternatives delivered double-digit growth. Rebelez said beer, snacks and cigarettes were softer categories, which he described as industry-wide trends; he said ready-to-drink cocktails increased by more than 30% and non-alcoholic beverages were a contributor to grocery and general merchandise sales.

Rebelez said remodels of acquired stores disrupted approximately 1% of the store base and created headwinds for inside sales and same-store fuel gallons. He said remodeled locations had produced an average prepared-food and dispensed-beverage lift of approximately 30% versus the comparable pre-remodel period, but said an inflection in the affected results was more likely later in FY2027. When analysts asked about fuel volumes, Rebelez said the remodel program reduced same-store gallons and that consumer behavior at higher fuel prices included fewer gallons per trip but more trips.

Steve Bramlage said fuel margins were volatile during the quarter, ranging from the 30s to the 60s of cents per gallon on different days, with headlines affecting subsequent movements. He said total operating expenses increased because of additional stores, credit-card fees, employee costs, insurance, repairs, maintenance and utilities. Bramlage said second-quarter operating-expense growth should be similar to the first quarter, partly because retail fuel prices are higher than in the prior-year quarter.

On investment and capital allocation, Bramlage said Casey’s had $1.4 billion of total available liquidity and a credit-facility debt-to-EBITDA ratio of 1.5× as of July 31, 2026. He said the board maintained the quarterly dividend at $0.65 and that the company repurchased $46.0 million of shares in the quarter. Rebelez said Casey’s remained on track to meet its FY2027 goal of 120 store openings, with approximately half expected from new-store construction and half from small acquisitions. Management said it would not update annual guidance until the Q2 earnings call, after the seasonally largest period.

Guidance

Casey’s did not change its FY2027 guidance on the Q1 call. Steve Bramlage said the company plans to update annual guidance on its Q2 earnings call after the seasonally largest period. He said same-store volumes in August were consistent with Q1 results and within the company’s annual guidance ranges, and that second-quarter operating-expense growth is expected to be similar to the first quarter.