Casey’s General Stores Inc. announced record Q2 earnings for the three and six months ended Oct. 31, 2020, citing “healthy sales growth in grocery and other merchandise and sizeable gasoline margins.”
“Casey’s had a remarkable second quarter and is well on our way to executing our long-term strategic plan,” said Casey’s President and CEO Darren Rebelez. “The company delivered well-balanced financial results, with contributions from both ongoing strong fuel profitability and inside sales volume and profit improvements. Casey’s also recently announced an agreement for the largest acquisition in the company’s history, the 94-store Bucky’s chain located primarily in Illinois and Nebraska. Finally, the Board’s decision to raise the dividend is a sign of continuing confidence in the company’s ability to achieve strong financial results and maintain our already excellent financial flexibility in both the short and long term.”
The c-store chain saw total net income reach $232 million for the six-month period ending Oct. 31, 2020, compared to $167 million the previous year.
Other second-quarter key highlights include:
- Diluted earnings per share of $3 compared to $2.21 for the same period a year ago, an increase of 36%.
- Fuel gross profit increased 45% with a fuel margin of 35.3 cents per gallon. Same-store gallons sold decreased 8.6% compared to prior year but improved sequentially from first quarter.
- Inside same-store sales increased 3.5% with a margin of 41.0%, inside gross profit increased 2.8%.
- Digital sales increased 127% compared to prior year. Casey’s Rewards recently exceeded 3 million members.
- The Board of Directors increased the dividend to $0.34 per share, an increase of 6%.
- Buchanan Energy acquisition expected to close in December.
Inside same-store sales were driven by strong performance in alcohol, packaged beverage and tobacco, the company said, along with continued strength in whole pizza pie sales. This was offset by pressure in the dispensed beverage and bakery categories, though these categories experienced improvements in volume compared to first quarter. Inside sales margin was adversely impacted by the product mix shift from the sales performance noted, but improved sequentially versus first quarter.
In addition to the acquisition of Buchanan Energy and its 94 Bucky’s c-stores, Casey’s said it expects to complete the construction of approximately 40 new stores this fiscal year.
Casey’s General Stores is a Fortune 500 company operating over 2,200 convenience stores in 16 states. Founded more than 50 years ago, the company has grown to become the fourth-largest convenience store retailer and the fifth-largest pizza chain in the U.S.