Casey’s General Stores reports increases in prepared foods, grocery
Ankeny, Iowa-based Casey’s General Stores Inc. saw its total prepared food and fountain drink sales increase by more than 5% in the second quarter; the c-store and fuel station is known for its own brand of pizza, among other items, and attributes 34% of its gross profits to its prepared foods. As for grocery and other merchandise, the company saw a more than 3% increase in same-store sales compared to Q2 of last year, while total gross profits in the category exceeded $660 million, up nearly 7%.
Caseys’ reported that the average margin in grocery and other merchandise was more than 33%, benefitting from a product mix that shifted into higher margin items. “We look forward to continued momentum as we build more data within our price optimization tool,” said Darren Rebelez, CEO of Casey’s. The company said its digital engagement strategy helped drive same-store sales. Working with Deloitte Digital, Casey’s built out a frictionless e-commerce platform and a more proactive and personalized experience for shoppers.
The company overall reported diluted earnings per share of $2.21 for the second quarter ended Oct. 31, which measured up against a $1.80 per share from the same quarter a year ago, a nearly 23% growth.
The company operates 2,181 locations in 16 states, primarily throughout the Midwest such as Iowa and Illinois, and is the fourth largest c-store business in North America. As for that pizza, the company just recently added some innovation to the arsenal, rolling out a mac and cheese pizza and a chicken alfredo pie.