Casey's Net Incomes Rises, But Revenue Dips

First quarter net income at Casey’s General Stores was up but overall net revenue was down with the drop driven largely by a significant decrease in fuel revenue.

For the three months ended July 31, total revenue was $3.9 billion, compared to total revenue of $4.5 billion in the comparable quarter the previous year. Net income ws $169.2 million vs. net income of $152.9 million the first quarter of the company’s prior fiscal year. Diluted earnings per share was $4.54, up from $4.09 in the same quarter in 2022. 

Inside same-store sales increased 5.4% compared to prior year, and 12.1% on a two-year stack basis, with an inside margin of 40.6%. Total inside gross profit increased 10.3% to $556.4 million compared to the prior year. Same-store fuel gallons were up 0.4% compared to prior year with a fuel margin of 41.6 cents per gallon. Total fuel gross profit decreased 3.6% to $297.0 million compared to the prior year.

Total inside sales were up 8.1% for the quarter driven by strong performance in the prepared food and dispensed beverage category, including whole pizza pies, hot sandwiches and donuts as well as non-alcoholic and alcoholic beverages, snacks and candy in the grocery and general merchandise category. 

Inside margin was up 0.8% compared to the same quarter a year ago, primarily due to softening of prepared food and dispensed beverage ingredient costs as well as increased penetration of private label products.

By segment, fuel revenue was $2.4 billion ($3.1 billion in ‘22), grocery and general merchandise revenue was $996.9 million ($923.1 million in ‘22), revenue from prepared food and dispensed beverages was $372.8 million ($343.6 million in ‘22), and other revenue was $72.2 million ($91.7 million in ‘22.

“With a more normalized macro operating environment in the quarter, the strength of Casey's unique business model was on full display,” said Darren Rebelez, chairman, president and CEO. “Inside same-store sales were strong, driven by whole pizza pies and the successful launch of Casey's Thin Crust Pizza.”