Casey’s General Stores (CASY) surged to a new all-time high this week.
The Iowa-based convenience store chain posted better-than-expected fourth-quarter earnings, raised its dividend, and delivered its most profitable fiscal year on record. The strong showing reinforced investor confidence in the company’s expansion strategy and operational discipline, even in a challenging retail landscape.
A Record Year for Revenue, Earnings, and Expansion
Casey's reported fiscal fourth-quarter earnings per share of $2.63—about 35% above analyst expectations. Total revenue climbed 11% year-over-year to $3.99 billion, marking the company’s second consecutive quarter of double-digit revenue growth. For the full fiscal year ending April 30, 2025, Casey’s generated nearly $16 billion in revenue and posted net income of $546.5 million, with annual EPS reaching $14.64, a 9% increase from the prior year.
The company also made its largest acquisition to date with the $1.1 billion purchase of Fikes Wholesale, which added nearly 200 CEFCO locations to its footprint. In total, Casey’s added 270 stores this year, expanding its network from 2,658 to 2,904 outlets across the Midwest and South.
Amid the strong results, Casey’s boosted its quarterly dividend by 14% to $0.57 per share—marking the 26th consecutive year of dividend growth. Shares responded sharply, jumping more than 15% on Tuesday and rising over 30% since the start of the year.
Inside Sales Drive Margins While Fuel Powers Foot Traffic
Casey’s strength lies in its hybrid model: low-margin fuel sales bring in customers, while high-margin inside sales deliver profitability. In Q4, inside sales rose 12% to $1.41 billion, driven by robust performance in bakery, hot sandwiches, and non-alcoholic beverages, particularly energy drinks. The average gross margin on these sales remained strong at 41.2%.
Same-store inside sales edged up 1.7%, or 7.4% on a two-year basis—outpacing broader industry trends. While February weather briefly dented foot traffic, March and April showed marked improvement, according to management.
Fuel volumes also surged, with gallons sold increasing nearly 18% year-over-year to 819 million, bolstered by new store openings. Although the average pump price dropped about 9% to $2.98 per gallon, fuel gross profit still grew 10.7%, thanks to efficient sourcing and pricing strategies.
CEO Darren Rebelez highlighted operational efficiency as a key performance driver. The company reduced same-store labor hours for the twelfth straight quarter, even while integrating more new locations than ever before.
Forward Guidance Signals Continued Growth Through 2026
Looking ahead, Casey’s expects to maintain its momentum. For fiscal 2026, the company is projecting EBITDA growth of 10% to 12%, along with 2% to 5% growth in inside same-store sales. Fuel sales are expected to be flat to modestly higher, while plans are in place to open at least 80 additional stores, through both acquisitions and new builds.
Despite rising costs and a cautious consumer environment, Casey’s reports consistent traffic levels, including steady demand from both high- and low-income shoppers. Notably, only about 5% of its in-store inventory is imported, giving it limited exposure to tariff risks.
The company also retains flexibility with $1.2 billion in available liquidity—more than $300 million in cash and nearly $900 million in unused credit facilities. Though no shares were repurchased in Q4, roughly $295 million remains authorized for buybacks.
Conclusion
Casey’s General Stores has emerged as a standout performer in the U.S. retail sector, combining disciplined execution, savvy expansion, and a resilient customer base. Its record-breaking year and confident outlook for 2026 suggest the company is well-positioned to continue delivering value to shareholders—even as competitors face increasing pressure from inflation, labor costs, and shifting consumer habits.
Considering a $1,000 investment in these companies?
Our team at Stock Investor carefully curated a list of top stocks with the potential for significant returns, suitable for beginners and seasoned investors alike who are eager to learn a trade and unearth the best stocks to buy. Though not featured in this article, these selected stocks could be game-changers in the future.For those seeking dynamic trading experiences, consider joining our Swing Trade Alerts, Option Income Alert, or our Trading Room. Take advantage of our special offer today, starting at just $1 in the first month.
Unlock the secrets of Smart Money
Explore how billionaires and institutions are influencing the market. Follow their every move with DarkOption Flow and stay updated on essential market insights. Begin your journey to informed investing today!
Education
And if you're a fan of Invest opedia, you'll appreciate what we offer at SharperTrades even more. Explore our comprehensive option trading course and technical trading course, where you can learn trading, analyze stocks, delve into chart patterns for stocks, and gain invaluable insights for making the best company investments.
Unlock Your Stock Market Edge with SharperTrades. Dive into powerful trading tools, learn a trade, and receive expert guidance. Stay up-to-date with regular market updates. Learn trading, basics of investing, and how to pick the best stocks to buy. Whether you're a beginner or seasoned investor and trader, we've got you covered. Get started for free, today!