Casey's General Stores, Inc.

First-quarter revenue was $5.68 billion, up $1.11 billion or 24.3% year over year. Diluted EPS was $7.37, up 28%, and net income was $274 million, up 27%; EBITDA was $485 million, up 17% and up 40% on a 2-year stack. Total gross profit was $1.24 billion, up $127 million or 11.4%; inside gross profit margin was 42.2%, up 30 bps, and fuel margin was $0.478 per gallon, up $0.068 per gallon. Inside same-store sales rose 3.2%, prepared food and dispensed beverage same-store sales rose 4.8%, grocery and general merchandise same-store sales rose 2.7%, and same-store gallons were down 0.3%. Management did not update annual guidance, but said August same-store volumes were consistent with Q1 and within annual guidance ranges, fuel CPG was in the low $0.40s per gallon, current cheese costs were slightly favorable, and Q2 operating expense growth is expected to be similar to Q1.

Darren Rebelez framed the quarter as proof that Casey’s convenience/QSR flywheel is working, emphasizing share gains both inside and outside the store. He highlighted strong prepared food momentum, over 11 million Casey’s Rewards members, and the idea that food traffic is also helping drive fuel traffic. His tone was upbeat and confident, while acknowledging that Fikes remodels are causing temporary disruption that should inflect later in the year.

Steve Bramlage focused on the financial mechanics behind the quarter: revenue of $5.68 billion, gross profit of $1.24 billion, operating expenses up 8%, net interest expense down to $22.1 million, depreciation up to $116 million, and free cash flow of $190 million after $384 million of operating cash flow and $194 million of capex. He said the OpEx increase was driven by new stores, credit card fees, employee expense, insurance, and maintenance/utilities, and noted the company ended the quarter with $1.4 billion of available liquidity and 1.5x credit-facility debt-to-EBITDA. He also said the board kept the quarterly dividend at $0.65 and the company repurchased about $46 million of stock.

Analysts focused on fuel margin sustainability, grocery and snack weakness, OpEx inflation, the impact of Fikes remodels, and the shape of same-store gallons. Management said fuel margins were volatile day to day, with most days in the 40s and the floor higher than before the Middle East conflict, but they would not call it a clean trend. On the consumer side, Darren said weakness was mostly category-driven rather than a broad income issue, pointing to beer, snacks and cigarettes, while highlighting strength in nicotine alternatives, energy drinks, ready-to-drink cocktails, and wings. On Fikes, management said the current disruptions are expected and were built into guidance, with the lift from remodeled stores likely more visible later in the fiscal year.