Casey's General Stores, Inc. — Q1 FY2027 Earnings Summary

Financial Performance

• Total revenue increased to $5.678 billion from $4.567 billion in the prior year period.
• Net income rose 27.1% to $273.7 million from $215.4 million.
• Diluted earnings per share (EPS) increased 27.7% to $7.37 from $5.77.
• EBITDA grew 17.1% to $485.1 million from $414.3 million.
• Inside gross profit increased 6.3% to $749.8 million; fuel gross profit increased 19.6% to $446.9 million.
• Operating expenses increased 8.0% to $754.1 million from $698.2 million.
• Cash and cash equivalents were $524.1 million at July 31, 2026.
• Net cash provided by operating activities was $384.1 million, compared to $372.4 million in the prior year.
• Net cash used in investing activities was $234.7 million, compared to $102.0 million in the prior year.
• Net cash used in financing activities was $148.3 million, compared to $139.0 million in the prior year.

Guidance and Future Outlook

• Fiscal 2027 outlook remains unchanged.
• Inside same-store sales expected to increase 2% to 5% with an inside margin above 42%.
• Same-store fuel gallons sold expected to be negative 1% to positive 1%.
• Total operating expenses expected to increase approximately 5% to 7%.
• EBITDA expected to increase 8% to 10%, implying 35% growth on a two-year stack basis at the midpoint.
• Company expects to open at least 120 stores in fiscal 2027 via M&A and new construction.
• Net interest expense expected to be approximately $95 million.
• Depreciation and amortization expected to be approximately $490 million.
• Capital expenditures (purchase of property and equipment) expected to be approximately $800 million.
• Effective tax rate expected to be approximately 24% to 26%.

Business Segments and Product Lines

• Inside same-store sales increased 3.2% (7.7% on a two-year stack basis) with an inside margin of 42.2%.
• Prepared food and dispensed beverage same-store sales increased 4.8%, driven by positive traffic and whole pizzas.
• Grocery and general merchandise same-store sales increased 2.7%, led by non-alcoholic beverages.
• Fuel same-store gallons sold decreased 0.3% (positive 1.4% on a two-year stack basis) with a fuel margin of 47.8 cents per gallon.
• Total fuel gallons sold increased 2.5% due to store count expansion.
• Store count increased from 2,944 at April 30, 2026, to 2,959 at July 31, 2026, adding 9 new stores, 12 acquisitions, and closing 6.
• A three-year strategic plan was released in June.

Market and Competitive Landscape

• Management noted navigating a volatile fuel environment with robust team capabilities.
• Guests are responding well to the value proposition on high-quality prepared food.
• The operations team delivered an exceptional guest experience during the busiest quarter of the year.

Risks and Challenges

• Forward-looking statements cite risks including execution of the strategic plan, integration of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges, and geopolitical disruptions in oil-producing regions.

Management Commentary and Tone

• Darren Rebelez, Chairman, President and CEO, stated the company is "off to a great start" on the strategic plan with a nearly 28% increase in diluted EPS.
• Management highlighted the integration of the Fikes acquisition is running ahead of schedule.

Other Key Points

• The Board of Directors approved a quarterly dividend of $0.65 per share, payable November 13, 2026, to shareholders of record on November 1, 2026.
• The Company repurchased approximately $45.6 million of shares during the quarter.
• Approximately $973 million remains under the existing share repurchase authorization.
• Available liquidity at July 31, 2026, was approximately $1.4 billion, consisting of $524 million in cash and $857 million in borrowing capacity.
• Payments for acquisition of businesses, net of cash acquired, were $43.9 million during the quarter.
• Purchase of property and equipment was $194.4 million during the quarter.
• Payments of cash dividends were $22.3 million during the quarter.
• Repurchase of common stock and payment of related excise taxes were $44.9 million during the quarter.
• Tax withholdings on employee share-based awards were $78.6 million during the quarter.