Caseys General Stores, Inc. (NASDAQ:CASY) shares are trading higher premarket on Wednesday after the company reported third-quarter FY24 results on Tuesday.
Revenue of $3.90 billion beat the consensus of $3.73 billion.
Inside same-store sales rose by 3.7% year-over-year (Y/Y) and 8.0% on a two-year stacked basis, with an inside margin of 40.9%. They were driven by strong performance in the prepared food and dispensed beverage categories, with hot sandwiches and bakery items performing particularly well.
Same-store fuel volumes increased by 1.8% Y/Y, with a fuel margin of 36.4 cents per gallon.
Total inside gross profit grew 14.3% Y/Y to $573.1 million, and fuel gross profit rose 17.4% Y/Y to $302.1 million.
EBITDA rose 11.4% Y/Y to $242.4 million, aided by higher inside and fuel gross profit. EPS of $2.33 exceeded the street view of $2.20.
As of January 31, 2025, the company had around $395 million in cash and cash equivalents and about $900 million in available borrowing capacity on existing credit lines.
Buyback: In the third quarter, the company did not repurchase any shares, with around $295 million remaining under its existing share repurchase authorization.
Dividend: The board of directors approved a quarterly dividend of $0.50 per share, payable May 15, 2025, to shareholders of record on May 1, 2025.
Darren Rebelez, chairman, president and CEO said, ”Total fuel gallons sold were up 20.4% while total inside sales rose 15.3% primarily due to unit growth, including the Fikes acquisition. The operations team’s focus on serving our guests efficiently is paying off, as we reduced same-store labor hours for the eleventh consecutive quarter.”
Outlook: Casey’s now projects a roughly 11% increase in EBITDA for 2025 and anticipates adding around 270 stores during the fiscal year, with the purchase of property and equipment expected to be about $500 million.
For FY25, the company expects same-store inside sales to grow by approximately 3% to 5%, with inside margins remaining similar to the prior year.
Same-store fuel gallons sold are projected to range from a decline of 1% to an increase of 1%.
Investors can gain exposure to the stock via Invesco Dorsey Wright Consumer Staples Momentum ETF (NASDAQ:PSL) and VictoryShares THB Mid Cap ETF (NASDAQ:MDCP).
Price Action: CASY shares are up 3.25% at $391.00 premarket at the last check Wednesday.
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