Casey's General Stores Reports Strong Third Quarter Results
Casey’s General Stores, Inc. ("Casey's" or the "Company") (Nasdaq: CASY), one of the premier convenience store chains in the United States, has announced impressive financial results for the three and nine months ended January 31, 2026. The results highlight significant growth in both revenue and profitability, showcasing the effectiveness of Casey's strategic initiatives and operational efficiencies.
1. Third Quarter Key Highlights
Casey’s reported a remarkable rise in key financial metrics:
- Diluted EPS soared to $3.49, reflecting a substantial 49.8% increase from the same period the previous year.
- Net income reached $130.1 million, up 49.3%, while EBITDA climbed to $308.9 million, marking a 27.5% increase compared to the prior year.
- Inside same-store sales rose by 4.0%, with a 7.9% increase on a two-year stack basis, achieving an inside margin of 42.2%.
- Total inside gross profit grew by 8.9%, amounting to $624.0 million year-on-year.
- Same-store fuel gallons increased slightly by 0.4%, with a fuel margin reported at 41.0 cents per gallon. Total fuel gross profit surged by 15.3%, totaling $348.2 million.
Darren Rebelez, Chairman, President, and CEO of Casey’s, commented on the quarter’s performance, stating, "Casey's achieved another successful quarter as strong sales and margin expansion drove performance. Our high-quality inside offering, along with a compelling value proposition, continues to attract guests to our stores."
2. Comprehensive Earnings Breakdown
Financial Performance Overview
| Metrics | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Net Income (thousands) | $130,073 | $87,097 | +49.3% |
| Diluted EPS | $3.49 | $2.33 | +49.8% |
| EBITDA (thousands) | $308,912 | $242,368 | +27.5% |
The growth in net income, diluted EPS, and EBITDA can primarily be attributed to increased inside and fuel gross profits, though this was somewhat tempered by higher operating expenses.
Inside Sales Performance
For the quarter, total inside sales escalated by 5.7% year-over-year. Notably:
- Prepared food and dispensed beverage same-store sales grew by 4.3%, driven by strong demand for whole pizzas and hot sandwiches.
- Grocery and general merchandise same-store sales also performed well, with an increase of 4.0%, particularly in non-alcoholic beverages.
The inside margin experienced an uptick of approximately 130 basis points, benefiting from effective management of costs and a favorable product mix.
Fuel Operations
Casey’s fuel segment also demonstrated resilience:
- Total fuel gallons sold increased by 2.3% year-over-year, supported by a growing store count and positive same-store gallon growth.
- The Company reported sales of $6.3 million in renewable fuel credits during the quarter, an increase of $3.7 million compared to the same quarter last year.
3. Operating Expenses and Strategic Expansion
Operating expenses rose by 4.1% during the quarter, influenced by several factors including increased labor costs and adverse weather conditions impacting operational efficiency. The Company also operated 31 more stores than the previous year, contributing to a portion of the increased expenses.
As of January 31, 2026, Casey's store count totaled 2,924, reflecting a combination of new store constructions and acquisitions. The Company continues to pursue its growth strategy, with plans to open at least 80 stores in fiscal 2026.
4. Strong Liquidity and Shareholder Returns
Casey’s maintains a robust financial position, with approximately $1.4 billion in available liquidity, consisting of $465 million in cash and cash equivalents, and $900 million in borrowing capacity.
The Company also initiated a share repurchase program, buying back approximately $76 million of shares during the quarter, with $157 million remaining under its authorization.
The Board of Directors declared a quarterly dividend of $0.57 per share, payable on May 15, 2026, to shareholders of record on May 1, 2026.
5. Fiscal 2026 Outlook
Encouraged by its strong performance year-to-date, Casey’s revised its fiscal 2026 outlook, projecting an 18% to 20% increase in EBITDA. The Company anticipates inside same-store sales growth of 3.5% to 4.5% and an inside margin of approximately 41.5% to 42.5%. Total operating expenses are expected to rise by about 10%.
6. Conclusion
Casey’s General Stores has once again demonstrated its strength in a competitive landscape, marked by significant growth in profitability and strategic expansion. With a solid financial foundation and a clear growth trajectory, the Company is well-positioned for continued success in the convenience store sector. As it moves forward, Casey’s commitment to delivering exceptional value and quality to its customers remains at the forefront of its business strategy.
