Casey’s General Stores Surges On Strong Q4 Earnings And Dividend Increase
$CASY
Casey’s General Stores (NASDAQ:CASY) has recently made headlines with its fiscal fourth-quarter earnings, surpassing analyst expectations significantly. The convenience store chain reported a robust quarterly earnings per share (EPS) of $2.63, well above the consensus estimate of $1.93. This performance marks a significant achievement for the company, reflecting a strategic execution that has resonated well within the retail sector.
The company’s total revenue for the quarter stood at $3.99 billion, indicating a substantial increase from the previous year’s figures. This growth is attributed to a combination of strong in-store sales and fuel sales, which have both seen remarkable increases. Inside sales alone jumped 12% to $1.41 billion, driven by high performance in bakery and prepared food and beverage segments, as well as non-alcoholic beverages.
Fuel sales also showed a notable improvement, with gallons sold jumping 18% to 818.6 million, largely due to the strategic addition of new store locations. Over the year, Casey’s added 246 new stores, which contributed significantly to the 14.5% increase in operating expenses. This expansion, the company managed to maintain healthy profit margins, a testament to its efficient operational management.
Casey’s announced a 14% increase in its quarterly dividend, moving from $0.50 to $0.57 per share. This decision reflects the company’s strong cash flow and its commitment to returning value to shareholders. It also marks the 26th consecutive year of dividend increases, underscoring Casey’s consistent performance and stable financial health.
Targets for fiscal 2026, projecting EBITDA growth between 10% to 12%. The company expects inside same-store sales to rise by 2% to 5% and aims to maintain a inside margin of approximately 41%. These projections highlight Casey’s strategic focus on growth through both organic sales increases and continued expansion via new store openings and acquisitions.
Casey’s General Stores’ latest financial results and strategic plans paint a picture of a company that is not only surviving but thriving in a competitive retail market. With a clear growth trajectory, robust financial health and a commitment to shareholder returns, Casey’s continues to be a notable player in the convenience store industry, poised for continued success in the coming years.
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