Casey's General Stores, Inc.: Prepared food and beverage margin expanded sharply

Casey's General Stores, Inc. 2027 Q1: Financial Performance summary

• Diluted EPS was $7.37, up 28% year over year, while net income increased 27% to $274 million.
• EBITDA rose 17% year over year to $485 million and increased 40% on a two-year stack basis.
• Free cash flow was $190 million versus $262 million in the prior year, primarily due to increased capital expenditures for Cefco remodels.
• Inside same-store sales increased 3.2%, with prepared food and dispensed beverages up 4.8% and grocery and general merchandise up 2.7%.
• Revenue increased 24.3% to $5.68 billion, driven primarily by higher inside sales, higher fuel prices, higher fuel gallons, and operating approximately 2% more stores.
• Same-store gallons declined 0.3%, partly reflecting a 50-basis-point headwind from Cefco remodeling, while fuel gallons sold companywide increased 2.5%.
• Total gross profit increased 11.4% to $1.24 billion; inside gross margin expanded 30 basis points to 42.2%, while fuel margin reached 47.8 cents per gallon.