In an economic climate that has not been kind to all retailers, Casey’s has shown resilience and innovation. The retailer recently released its financial results for the three and nine months ending Jan. 21, 2025.
The company reported strong earnings for the time frame, with a net income of $87.1 million — flat compared to the prior year. Casey’s EBITDA was $242.4 million, up 11% compared to a year ago.
Inside same-store sales also increased by 3.7%, and 8% on a two-year stack basis, with an inside margin of 40.9%. Notably, inside gross profit was up by 14.3% to $573.1 million.
On the fuel side, Casey’s saw a 1.8% bump in same-store fuel sales, and a total fuel gross profit of $302.1 million — up 17.4%.
“Casey’s delivered an excellent third quarter highlighted by strong sales growth both inside and outside the store,” said Darren Rebelez, chairman, president and CEO. “Inside same-store sales were driven by the prepared food and dispensed beverage category, with hot sandwiches and bakery performing quite well. Our fuel team did a tremendous job achieving same-store gallon growth of 1.8% while maintaining a solid fuel margin. Total fuel gallons sold were up 20.4% while total inside sales rose 15.3% primarily due to unit growth, including the Fikes acquisition. The operations team’s focus on serving our guests efficiently is paying off, as we reduced same-store labor hours for the eleventh consecutive quarter.”
Success Despite Change
The success that Casey’s saw in Q3 came during a transformative time for the brand. In November 2024, as Rebelez alluded to, Casey’s completed its largest acquisition in company history, adding 198 CEFCO stores from Fikes Wholesale.
The acquisition brought 148 additional stores to Texas, which is a highly strategic market for Casey’s, as well as 50 stores in the southern states of Alabama, Florida and Mississippi. It brought Casey’s total store count to 2,900.
“This acquisition is the largest in Casey’s history and in line with the strategic plan laid out at the June 2023 Investor Day,” said Rebelez at the time of the acquisition. “We are thrilled to complete this transaction, welcome Fikes to the Casey’s team, and look forward to bringing Casey’s pizza to these high-volume stores.”
The deal was valued at $1.145 billion, which the company financed through balance sheet cash and bank financing.
“We expect the acquisition will create value for Casey’s shareholders in the near- and long-term and will be accretive to Casey’s EBITDA in the current fiscal year,” continued Rebelez. “Fikes is a well-run and well-respected company in our industry, and we look forward to welcoming the Fikes team to the Casey’s family. We could not be more excited about the future of our two organizations.”
