0000726958-25-000065
SEC filingFiscal 2025 revenue grew 7.3% to $15.9B, driven by the Fikes acquisition, with diluted EPS up 9.0% to $14.64.
Casey's General Stores, Inc. operates convenience stores under brands including Casey's, Casey’s General Store, GoodStop, CEFCO, Bucky's, and Lone Star Food Store. As of April 30, 2025, the Company had 2,904 stores across 20 states, with approximately half located in Iowa, Missouri, and Illinois. The Company primarily serves smaller communities, with about 71% of stores in areas with populations under 20,000. On November 1, 2024, Casey's acquired Fikes, adding 198 stores (primarily under CEFCO) and its first fuel terminal, expanding into Texas, Alabama, Florida, and Mississippi.
The Business section does not explicitly define reporting segments. Revenue is derived from retail fuel sales (61.3% of total revenue in fiscal 2025) and in-store products (groceries, prepared food, beverages, etc.). Prepared food and dispensed beverage and grocery/general merchandise together generated about 34% of total revenue but contributed approximately 63% of revenue less cost of goods sold (excluding depreciation and amortization).
The Company offers a broad selection of products including freshly prepared foods (e.g., pizza, donuts, sandwiches), beverages, tobacco and nicotine products, groceries, health and beauty aids, and automotive items. Pizza is the flagship product, available in almost all Casey's stores. The Company also operates the Casey's Rewards loyalty program with over 9 million members, offering points redeemable for fuel discounts or Casey's Cash. Private label products are part of the assortment. Store brands include Casey's, GoodStop, CEFCO, Bucky's, and Lone Star Food Store.
Casey's sells primarily through its own retail stores, with all but six locations offering self-service fuel. The Company self-distributes the majority of fuel and merchandise via three distribution centers (Ankeny, IA; Terre Haute, IN; Joplin, MO) and a fleet of about 500 tractors. A small wholesale network (2% of revenue) supplies fuel to dealer sites. No key customer concentration is disclosed.
The business is highly competitive. In smaller communities, competitors include local grocery and convenience stores, dollar stores, and limited prepared food outlets. In larger communities, competition includes national grocery and drug store chains, quick-service restaurants, expanded fuel stations, and traditional convenience stores. The fuel business competes on brand, price, and convenience.
Casey's strategy focuses on promoting high-margin prepared food and dispensed beverages, which yield about 58% margin. The Company aims to grow its store count through acquisitions and new builds, enhance the digital guest experience via the Casey's Rewards program, and develop private label offerings. Competitive pricing and a broad product selection are key to serving both smaller and larger communities.
As of April 30, 2025, Casey's employed 23,338 full-time and 25,934 part-time Team Members, with approximately 94% working in stores. The Company is not party to any collective bargaining agreements. It offers a 401(k) plan with a 6% match in Company stock, competitive health benefits, and a Team Member Support Fund for financial hardships. The Company's core values are encapsulated in 'Casey's CARES': Commitment, Authenticity, Respect, Evolving, and Service.
Fiscal 2025 total revenue increased 7.3% to $15.94B, driven primarily by the November 2024 acquisition of Fikes Wholesale and Group Petroleum Services, which contributed $952M in additional revenue. The acquisition added 198 stores and a wholesale fuel network, marking the largest single-store growth year in company history. Revenue less cost of goods sold (excluding D&A) improved to 23.5% of revenue from 22.5%, reflecting higher inside margins and stable fuel profitability. Diluted EPS rose 9.0% to $14.64, with net income up 8.9% to $546.5M. Growth was partially offset by higher operating expenses (+11.5%), depreciation (+15.4%), and net interest (+57.1%) due to incremental debt financing.
Management's long-term strategic plan (announced June 2023) focuses on three objectives: grow store count, accelerate the food business, and enhance operational efficiency. In fiscal 2025, the company made significant progress by adding 270 stores and achieving 12 consecutive quarters of same-store labor hour reductions. No specific numerical guidance for fiscal 2026 was provided in the MD&A. The company expects fuel gross profit per gallon to remain elevated from historical levels but acknowledges potential volatility from oil prices, interest rates, and geopolitical factors. Casey's continues to invest in EV charging stations (230 charging stations at 47 stores as of April 2025) and renewable fuel options, though near-term demand remains low in the Midwest footprint.
As of April 30, 2025, Casey's holds $326.7M in cash and equivalents, up from $206.5M a year earlier. Total debt (including finance lease obligations) increased to $2.51B from $1.64B, driven by the Fikes acquisition financing. Shareholders' equity stands at $3.51B, resulting in a debt-to-equity ratio of 0.71. Inventory rose to $480.0M, with merchandise inventory at $344.3M (LIFO) and fuel at $135.7M (FIFO). The LIFO reserve was $163.0M. Deferred revenue from the Casey's Rewards program totaled $64.1M.
Total lease commitments amount to $938.7M, comprising $159.3M in finance lease payments and $779.4M in operating lease payments. Annual lease payments are $36.9M for operating leases and $14.8M for finance leases. No material purchase commitments for inventory or supply were disclosed. Asset retirement obligations for underground storage tanks stand at $52.1M, and self-insurance reserves at $74.5M.
Buybacks: no shares repurchased in FY2025; $295.1M remains under the $400M authorization. Dividends: $75.4M paid ($2.00 per share), up from $1.72 in FY2024 (16.3% growth). Debt: issued $250M in Senior Notes (Series I & J) and $850M Incremental Term Loan to fund Fikes; repaid $239.5M of existing debt, net increase of $872.6M. Capex: $506.2M spent on property and equipment (3.2% of revenue), excluding acquisitions.
The company operates as a single reportable segment with 2,904 stores in 20 states, primarily in the Midwest. Note 11 provides a breakdown of revenue and cost of goods sold by product category: prepared food & dispensed beverage ($674.3M COGS), grocery & general merchandise ($2,691.9M COGS), fuel ($8,539.3M COGS), and other ($283.0M COGS). Direct store operating expenses are segregated into same-store employee ($975.2M), same-store other ($480.4M), same-store credit card fees ($212.4M), non same-store ($305.6M), and other corporate expenses ($578.8M). The CODM uses net income as the primary profit measure for resource allocation.
A cybersecurity or data security incident could result in loss of sensitive guest, Team Member, or supplier data, leading to litigation, regulatory actions, and reputational damage. The company maintains insurance but notes it may not cover all losses. This risk is ongoing given the evolving threat landscape.
Foodborne illnesses or contamination, whether actual or reported, could severely hurt sales and brand value. Reliance on suppliers for quality ingredients adds supply chain risk. Non-compliance with food safety regulations could lead to fines and legal claims.
Fluctuations in commodity prices, particularly cheese and proteins, directly impact cost of goods sold. The company may not be able to pass these increases to customers due to competitive pricing, compressing margins. Fuel price volatility also affects the largest revenue segment.
Difficulty recruiting and retaining qualified drivers, distribution center staff, and store employees, along with rising wages in a tight labor market, increase operating expenses. Loss of key leadership could also disrupt operations.
Technological advances in fuel efficiency, government mandates, and consumer preference for EVs may reduce long-term demand for petroleum-based motor fuel. This represents a multi-year structural risk to the core fuel business.
The convenience store industry is highly competitive with many traditional and non-traditional players. Non-traditional retailers like supermarkets and mass merchants with promotional pricing could pressure margins and store traffic.
Extensive federal, state, and local regulations cover environmental, food, tobacco, wage, and data privacy matters. Changes in laws or non-compliance could result in significant costs. Tobacco taxes and restrictions may reduce sales of a key product category.
General economic conditions—inflation, high interest rates, unemployment—reduce consumer discretionary spending, affecting store traffic and sales. Higher fuel prices also impact driving behavior and demand.
Executing acquisition and new store development plans involves risks: identifying suitable sites, financing, integration challenges, and management distraction. Failure could impede growth expectations.
Risks include credit card fee exposure (>$250M in FY25), operational hazards (fuel storage/transport), dependence on IT systems, and debt covenant compliance. These are managed but could materially impact results if realized.