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CASY
Earnings call · Jul 2026 (Q1 FY27)

CASEYS GENERAL STORES Q1 FY27 earnings call CASY

Sep 9, 2026 Source

Executive summary

Casey's Q1 FY27 — Strong Start to Strategic Plan with Robust Earnings and Inside Sales Growth

Casey's delivered a strong start to its new strategic plan in Q1 FY27, driven by robust earnings and solid inside sales growth, particularly in prepared foods. The company successfully navigated a volatile fuel market, gaining market share, while continuing to integrate the Fikes acquisition and expand its store base. Management expressed confidence in its advantaged convenience QSR flywheel model and its ability to achieve long-term financial targets.

Highlights

5

  • Diluted EPS of $7.37 per share, up 28% from prior year.

  • Net income of $274 million, an increase of 27% from prior year.

  • EBITDA of $485 million, 17% higher than prior year and up 40% on a 2-year stack basis.

  • Inside same-store sales up 3.2%, with Prepared Food & Dispensed Beverage (PF&DB) same-store sales up 4.8%.

  • Fuel margin of $0.478 per gallon, up $0.068 per gallon from prior year, indicating market share gains in a declining market.

Concerns

4

  • Same-store fuel gallons down 0.3%, though partially offset by Fikes remodel headwinds.

  • Grocery and General Merchandise (G&GM) same-store sales growth of 2.7% impacted by softness in beer, snacks, and cigarettes.

  • Free cash flow decreased to $190 million from $262 million in the prior year, due to planned increase in capital expenditures for Setco store remodels.

  • Fikes construction caused a 25 basis point headwind to inside same-store sales and a 50 basis point headwind to same-store fuel gallons.

Guidance & targets

CategoryTargetConfidence
Full-year store unit additions
120 stores
high materiality
High
Long-term Operating Expense Growth vs. EBITDA Growth
Slower rate than EBITDA growth
medium materiality
High
Q2 FY27 Operating Expense Increase
Similar to Q1 FY27
medium materiality
Medium
Q2 FY27 Cheese Costs
Slightly favorable versus prior year
low materiality
Medium
Fuel Margin
Mid-$0.40s per gallon
high materiality
High
Cheese Cost Coverage
80% covered
low materiality
High

CASY operating KPIs by quarter

CASY operating KPIs stated on its earnings calls, by fiscal quarter
KPI Jan 2025 Q3 FY25 Apr 2025 Q4 FY25 Jul 2025 Q1 FY26 Oct 2025 Q2 FY26 Jan 2026 Q3 FY26 Apr 2026 Q4 FY26This call Jul 2026 Q1 FY27Change vs prior quarter
Average retail fuel price per gallon
$2.85 This was partially offset by a $0.12 decline in the retail price of fuel from $2.98 per gallon in the prior year to $2.85 per gallon in the third quarter. Source transcript
$2.98 Retail fuel sales were up $162 million in the fourth quarter due primarily to a 17.8% increase and the total gallons sold to $819 million, which was partially offset by a 9% decline in average retail price from $3.28 per gallon last year to $2.98 this year. Source transcript
$3 The average retail price of fuel during this period was $3 a gallon, and that compares to $3.31 a year ago. Source transcript
$2.96 The average retail price of fuel during the period was $2.96 a gallon, and that compares to $3.11 a year ago. Source transcript
$2.72 The average retail price during the period was $2.72 a gallon, and that compares to $2.85 a year ago. Source transcript
$3.4 Retail fuel sales were up $446 million in the fourth quarter due primarily to a 14.1% increase in the average retail price from $2.98 to $3.40, along with a 3.6% increase in the total gallons sold to $848 million, which also contributed. Source transcript
$3.99 Retail fuel sales were up $991 million in the quarter as the average retail price of fuel rose 33% from $3 to $3.99 per gallon, and total gallons sold increased by 2.5%. Source transcript
+17.4%
Employees —
49K Thank you to our 49,000 team members, guests, supplier partners and the nonprofits that make this all possible. Source transcript
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50K This impact was made possible because of the dedication of our 50,000 team members, the generosity of our guests and the support of our partners. Source transcript
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Casey's Rewards members —
9M+ Casey's Rewards now has over 9 million members. Source transcript
<9.5M Using guest insights and data gathered from our nearly 9.5 million Casey's Rewards members helps us get the right products on the shelves at competitive prices for our guests. Source transcript
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10M+ Within Casey's Rewards, we crossed a major milestone as we now have over 10 million members. Source transcript
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11M+ Just are flocking to the Casey's Rewards platform as we're now over 11 million members. Source transcript
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Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
Bacon Cheeseburger Pizza LTOlaunch
Chicken Wingsexpansion

Deals & partnerships

Fikes Integration of acquired stores

Integration of the Fikes acquisition is ongoing, with 24 Setco stores remodeled to Casey's in Q1 FY27. Remodeled stores have performed exceptionally well, with an average PF&DB lift of approximately 30%.

Undisclosed Small tuck-in acquisition

A small tuck-in acquisition was completed in Texas after the quarter end, contributing to the company's expansion strategy in the state.

Capital programs

Setco Store Remodels underway
Period spend: $194 million

Benefit:Average PF&DB lift of 30% post-remodel

Planned increase in capital expenditures for Setco store remodels led to a decrease in free cash flow. 24 stores remodeled in Q1 FY27. Expected inflection point for positive impact is likely in Q4 FY27.

Risks & headwinds

Fikes/Setco Remodel Disruption Q1 FY27, expected to continue into Q2/Q3 FY27, with inflection in Q4 FY27

25 bps headwind to inside same-store sales; 50 bps headwind to same-store fuel gallons

Mitigation:Remodeled stores performing exceptionally well with an average PF&DB lift of approximately 30% post-remodel. Impact was anticipated and factored into annual guidance.

Challenged Category Trends Ongoing

Beer was a headwind; Snacks saw pressure from national brand pricing; Cigarettes saw multi-decade decline of 1-2% sales and 5-6% units.

Mitigation:Leaning into liquor (ready-to-drink cocktails up 30%+), private label offerings (chips up 16% units), and nicotine alternatives (up 47%, double margin of combustibles). Merchandising team has adjusted backbar space for nicotine alternatives.

Impact on Lower-Income Consumers Ongoing

Lower-income consumers are being slightly more impacted than other income cohorts.

Mitigation:All three income cohorts measured had positive growth in the quarter. Geographic footprint in lower cost-of-living parts of the country helps consumers' money go further. Value-oriented food offering is a differentiator.

Higher Fuel Prices & Consumer Behavior Ongoing

Fewer gallons per trip, but more trips made. Shift from premium/mid-grade to regular or higher ethanol blends.

Mitigation:Increased store traffic ultimately accrues to benefit. Higher ethanol blends carry a higher margin. These trends are consistent with prior periods of higher gas prices and ultimately benefit the company.

Geographic Tax Arbitrage Ongoing

Weakness in Illinois fuel sales along the border due to gas tax, offset by corresponding strength in Indiana where gas tax is suspended.

Mitigation:Considered a wash as guests play an arbitrage game between states.

What to watch in Q2 FY27

Fikes/Setco Remodel Impact

Next quarter (Q2 FY27) and beyond
Current 25 bps inside SSS headwind, 50 bps fuel gallons SSS headwind in Q1 FY27
Target Continued headwind in Q2/Q3, with inflection towards positive contribution in Q4 FY27

Why it matters

Integration of acquired stores and successful remodels are key to realizing synergies and driving future growth.

this next tranche of stores that we started this quarter, this past quarter are impacted anywhere from 4 to 6 weeks. And so that puts a pretty significant drag... It'll probably be more fourth quarter or you start to see that inflection point.

Q&A highlights

Asked about the trend of fuel margins during Q1, the sustainability of robust performance, and if anything questions the mid-$0.40s annual guide.

Steve Bramlage described Q1 fuel margins as volatile, with daily fluctuations but a higher floor due to the Middle East conflict. He stated that the mid-$0.40s guide remains consistent with expectations.

“I would say, honestly, that the quarter was volt's always the word I would describe with fuel margins. There were days when it was in the 60s. There were days when it was in most days, it was in the 40s.”

asked by Edward Kelly · answered by Stephen Bramlage

2 min read 6 chapters

Detailed narrative

Strategic Plan Execution and Community Impact

Casey's is in the first quarter of its FY27-29 strategic plan, emphasizing its advantaged convenience QSR flywheel model. The company highlighted its positive community impact, raising over $1.8 million for schools, students, and teachers through its annual "Path for Classrooms" initiative, a new record. This reflects a commitment to investing in local communities.

Inside Store Performance and Innovation

Prepared food and dispensed beverage (PF&DB) transactions increased by over 100 basis points, driving units up nearly 4% year-over-year. Inside margin expansion was primarily due to PF&DB mix. Innovations like the Bacon Cheeseburger pizza LTO and strong performance in whole pies, with units up nearly double digits, contributed to PF&DB same-store sales growth of 4.8%.

Fuel Market Navigation and Share Gains

Despite a volatile environment, Casey's achieved a fuel margin of nearly $0.48 per gallon. Same-store gallons were down slightly by 0.3%, but positive 1.4% on a 2-year stack basis. The company noted that the Mid-Continent region saw an approximate 6% decline in fuel gallons, indicating significant market share gains for Casey's.

Fikes Acquisition Integration and Remodel Impact

The integration of the Fikes acquisition is progressing, with 24 Setco stores remodeled to Casey's in Q1 FY27. These remodels caused a temporary headwind of 25 basis points to inside same-store sales and 50 basis points to same-store fuel gallons due to planned disruption. However, remodeled stores have shown strong results, with an average PF&DB lift of approximately 30% post-remodel.

Category Trends and Consumer Behavior

While overall Grocery & General Merchandise (G&GM) same-store sales were up 2.7%, categories like beer, snacks, and cigarettes faced challenges. Nicotine alternatives and energy drinks showed double-digit growth, with ready-to-drink cocktails up over 30%. Management noted that lower-income consumers are slightly more impacted, but overall trends are consistent with prior periods of higher gas prices, leading to more trips and a shift to higher-margin ethanol blends.

Operational Efficiency and Store Growth

The company is focused on operational efficiency, with same-store labor hours remaining roughly flat despite increased food demand. Total operating expenses increased 8%, with 2% attributed to unit growth (64 more stores). Casey's remains on track to meet its goal of adding 120 new stores in the fiscal year, with M&A playing a key role in this expansion strategy, particularly in Texas.

AI-generated summary of the company's earnings call. Not investment advice.