Third quarter sales at Casey’s were up more than 9% driven in part by growth of inside sales that includes the retailer’s assortment of private label products.
For the three months ended Jan. 31, company wide revenue was $3.33 billion, up from revenue of $3.05 billion from the comparable quarter the previous year. Net income was $100 million, up from net income of $64 million the third quarter of 2022. Net income per diluted share was $2.67, up from $1.71 in the same quarter the prior year.
“Casey's delivered another stellar quarter by driving inside gross profit while managing operating expenses efficiently,” said Darren Rebelez, president and CEO. “Inside same-store sales were spurred by grocery and general merchandise, notably non-alcoholic and alcoholic beverages, snacks, and candy. Prepared food and dispensed beverages performed well due to strong pizza slice and donut sales. The fuel team continues to strike the right balance between gallon volume and gross profit margin.”
Total inside sales were up 8.2% for the quarter driven by strong performance in the grocery and general merchandise category, including non-alcoholic and alcoholic beverages, snacks and candy as well as pizza slices and donuts in the prepared food and dispensed beverage category. Inside comparable store sales in the quarter were up 5.6%.
Inside margin was up 120 basis points compared to the same quarter a year ago. Grocery and general merchandise margin increased by approximately 200 basis points primarily due to a favorable mix shift to higher margin items like energy drinks and candy, as well as private label products, while higher prepared food and dispensed beverage ingredient costs, notably cheese, continued to pressure gross profit margin relative to the prior year. Prepared food and dispensed beverage margin did improve sequentially from the second quarter by approximately 60 basis points, and margin has improved sequentially each quarter throughout the fiscal year.
Fuel sales were $644.9 million, up from fuel sales of $631.8 million in the third quarter of 2022. Total gallons increased 3.7% compared to the prior year due to the store count increase while same-store gallons sold were down 0.5% versus the prior year. The company’s total fuel gross profit was up 10.4% versus the prior year, favorably impacted by higher fuel margin.
The company is modifying its fiscal 2023 outlook. Casey’s now expects same-store inside sales growth to be approximately 6% to 7% and same-store fuel gallons to be down 1% to up 1%.