Casey's General Stores Q4 Earnings Call Highlights

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Casey’s posted record fiscal 2026 results, with diluted EPS up 31% to $19.16, net income up 31% to $714 million, and EBITDA up 23% to nearly $1.5 billion. Fourth-quarter EPS jumped 66% as strong inside sales and higher fuel profitability lifted results.

Inside sales and fuel margins were the main growth drivers, led by prepared foods, pizza, beverages, and grocery items. Same-store sales rose across key categories, while fuel margin improved sharply to $0.469 per gallon in the quarter.

Management signaled continued expansion and shareholder returns in fiscal 2027, guiding for 8% to 10% EBITDA growth and at least 120 new store openings through acquisitions and new builds. The board also raised the dividend 14% and expanded buybacks to as much as $1 billion.

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Casey's General Stores (NASDAQ:CASY) reported record fiscal 2026 results, with executives highlighting strong in-store sales, higher fuel profitability and continued store expansion during the company’s fourth-quarter earnings call.

Chairman, President and Chief Executive Officer Darren Rebelez said the convenience store operator delivered its highest-ever diluted earnings per share, net income and EBITDA for the fiscal year ended April 30, 2026. Diluted earnings per share rose 31% from the prior year to $19.16, while net income increased 31% to $714 million. EBITDA reached nearly $1.5 billion, up 23% year over year.

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“Our fiscal 2026 results illustrate the durability and strength of Casey's advantage business model,” Rebelez said. “We're confident in our ability to deliver results in a variety of economic climates.”

Chief Financial Officer Steve Bramlage said fourth-quarter diluted earnings per share were $4.37, up 66% from the prior year. Net income increased 65.5% to $162.7 million, while EBITDA rose 33.2% to $350.3 million.

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Total inside sales in the quarter increased 7.4% to more than $1.5 billion. Inside gross profit dollars rose $61 million, or 10.5%, as the average inside margin reached 42.4%.

Prepared Food and Dispensed Beverage sales increased 9.2% to $428 million, while same-store sales in the category rose 6.6%. The segment’s average margin improved 170 basis points from a year earlier to 59.5%. Bramlage said whole pizzas, appetizers and sides performed well, while improved waste management was the primary driver of margin expansion. Lower LIFO charges and a modest decline in cheese costs also helped margins.

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Grocery and General Merchandise sales increased 6.7% to $1.09 billion, with same-store sales up 5.1%. The category’s average margin increased 90 basis points to 35.7%. Bramlage said sales were particularly strong in non-alcoholic beverages, especially energy drinks, and that cost of goods management and product mix, including nicotine and nicotine alternatives, supported margin gains.

On fuel, same-store gallons sold increased 1.5% in the fourth quarter. Fuel margin was $0.469 per gallon, up about $0.093 from the prior year. Retail fuel sales increased $446 million, driven mainly by a 14.1% increase in the average retail fuel price to $3.40 and a 3.6% increase in total gallons sold to 848 million.

For the full fiscal year, total inside sales grew 10.2%, while inside same-store sales increased 4.2%, or 7% on a two-year stack. Prepared Food and Dispensed Beverage sales rose 10.2%, with same-store sales up 5.2%. Grocery and General Merchandise sales also increased 10.1%, with same-store sales up 3.9%.

Rebelez said whole pizzas and non-alcoholic beverages helped drive the results. He pointed to product initiatives including limited-time offers, specialty pizza expansion, a new frozen carbonated beverage platform, and the rollout of wings. Casey’s also partnered with Monster on a Red, White & Blue Razz flavor sold almost exclusively at Casey’s from late January to early May.

Fuel gross profit increased 21% for the year, with total fuel gallons sold up 10% and fuel margin averaging $0.426 per gallon.

Rebelez also said Casey’s operations team continued to control costs. Same-store operating expenses, excluding credit card fees, increased 3.7% for the year, helped by a 0.2% reduction in same-store labor hours. He said guest satisfaction and team member engagement were at or near all-time highs.

Bramlage said Casey’s balance sheet remains in “excellent condition,” with total available liquidity of $1.4 billion as of April 30. The company’s debt-to-EBITDA ratio, calculated under its credit facilities, was 1.5 times.

In the fourth quarter, Casey’s generated $398 million in operating cash flow and spent $191 million on property, plant and equipment, resulting in $207 million in free cash flow. Full-year free cash flow totaled $722 million, including an approximately $100 million cash tax benefit related to capital spending from the One Big Beautiful Bill, Bramlage said.

Return on invested capital finished the fiscal year at 12.7%, up 120 basis points from the prior year. Bramlage said that was the company’s highest return on invested capital since a tax-aided 2018.

The board approved a 14% dividend increase to $0.65 per share, marking the 27th consecutive year of dividend increases. Casey’s repurchased approximately $63 million of shares during the quarter, and the board expanded the company’s share repurchase program to up to $1 billion. Bramlage said Casey’s anticipates approximately $200 million in share repurchases in fiscal 2027.

For fiscal 2027, Casey’s expects inside same-store sales to increase 2% to 5%, with inside margin above 42%. Same-store fuel gallons sold are expected to range from down 1% to up 1%. Total operating expenses are expected to increase approximately 5% to 7%.

The company expects EBITDA to grow 8% to 10%, which Bramlage said would imply a 35% increase on a two-year stack at the midpoint of the range. Casey’s expects to open at least 120 stores in fiscal 2027 through an even mix of acquisitions and new store construction.

Net interest expense of approximately $95 million.

Depreciation and amortization of approximately $490 million.

Purchases of property, plant and equipment of approximately $800 million, including costs to convert the majority of CEFCO stores to Casey’s.

Bramlage said Casey’s is not providing guidance for fuel margin per gallon or earnings per share. For modeling purposes, the EBITDA outlook is based on a mid-40-cents-per-gallon fuel margin, along with the other guidance assumptions.

During the question-and-answer session, Rebelez said fuel margins benefited from volatility in wholesale fuel costs during the quarter. He said the path of fuel prices was more uneven than in some prior periods, which allowed margins to widen at certain points.

Asked about consumer behavior, Rebelez said consumers are “hanging in there,” though they may be more discerning. He said Casey’s is seeing growth across income cohorts, with somewhat less growth among lower-income consumers. At the pump, he said higher fuel prices are leading to modest changes, including lower premium fuel sales, higher ethanol-blended fuel sales and smaller gallons per transaction. He also said gallons redeemed through Casey’s Rewards were up 23% in the quarter.

Rebelez said wings are performing well as Casey’s expands the offering, with guests ordering them both alongside pizza and as a standalone item. He said customers who order wings on their own have increased their Prepared Food order frequency by 30%, and whole pizza volume in stores selling wings remains up in the high single digits.

On store growth, Rebelez said the company’s target of at least 120 new stores in fiscal 2027 represents a return to Casey’s typical growth algorithm of about 4% new units annually. Bramlage said the company remains bullish on acquisition opportunities, citing a fragmented convenience store industry with many small operators under pressure.

Rebelez also said Casey’s completed a three-year strategic plan built around accelerating the food business, increasing unit count and improving operational efficiency. Over the plan period, the company added more than 500 units, exceeding its original goal of 350, and reduced same-store labor hours by approximately 5% while improving turnover by more than 70 percentage points.

Casey's General Stores, Inc (NASDAQ: CASY) is a U.S.-based convenience store chain that operates retail fuel stations and food-focused convenience outlets. Founded in 1959 in Boone, Iowa, the company has grown from a single neighborhood store into a regional operator known for combining traditional convenience retailing—fuel, packaged goods and tobacco—with a larger emphasis on fresh and prepared foods.

The company's stores typically offer gasoline and diesel alongside a range of grocery essentials, grab-and-go items and made-to-order foodservice.

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