0000726958-26-000046
SEC filingRevenue grew 10.2% to $17.6B, driven by Fikes acquisition and inside-store gains; net income up 30.7% as fuel margins expanded.
Casey's General Stores, Inc. operates convenience stores primarily under the names "Casey's" and "Casey's General Store", as well as "GoodStop (by Casey's)" and "CEFCO" for a limited number of locations. As of April 30, 2026, the Company operated 2,944 stores across 19 states, approximately half of which are located in Iowa, Missouri, and Illinois. About 71% of stores are in areas with populations of fewer than 20,000 persons. The Company's revenue is derived mainly from retail fuel sales (60.4% of total revenue in fiscal 2026) and inside-store products, including prepared food, beverages, tobacco, groceries, and other items. The Company owns most of its real estate, including substantially all stores, three distribution centers, a fuel terminal, and the Store Support Center.
The filing does not disclose formal reporting segments. The Company describes its operations as a single business focused on convenience stores, with revenue streams from retail fuel and inside-store sales. The wholesale fuel network accounts for approximately 3% of total revenue from dealer sites not operated by Casey's.
The Company's flagship prepared food product is pizza, available in almost all stores. It offers grab-and-go slices and made-to-order whole pies. Other prepared foods include hot sandwiches, made-to-order sandwiches, salads, wraps, fries, donuts, cookies, and expanded bone-in and boneless chicken wings available in approximately 850 stores, with plans for further expansion. The Company also offers a variety of dispensed beverages, including traditional fountain beverages, bean-to-cup coffee, and frozen dispensed beverages. Each Casey's store typically carries over 3,000 packaged food, beverage, and non-food items, including private label products, national and regional brands, and categories such as non-alcoholic beverages, alcoholic beverages, packaged foods, tobacco and nicotine products, frozen foods, non-foods, and services (ATM, lottery, prepaid cards). The Company has electric vehicle charging stations at 64 stores and offers the Casey's Rewards program, a loyalty program with over 10 million members, delivered through the Casey's mobile application.
Fuel is sold on a self-service basis at almost all stores. Inside-store products are sold retail in stores. The Company operates a wholesale network where it manages fuel supply agreements to dealer sites and other wholesale locations, accounting for about 3% of revenue. The Company self-distributes the majority of fuel and operates three distribution centers that supply groceries and general merchandise to most stores. Certain stores outside the distribution centers' radius (e.g., in Florida) are supplied by a third-party partner. No key customer concentration is disclosed.
The business is highly competitive. In smaller towns, competition includes local grocery and convenience stores, "dollar" stores, and to a lesser extent prepared food outlets, restaurants, and expanded fuel stations. In more heavily populated communities, competitors include local and national grocery and drug store chains, quick service restaurants, expanded fuel stations, supermarkets, discount food stores, and traditional convenience stores. The fuel business competes on price, location, and convenience.
The Company's strategy includes: (1) delivering value through a differentiated product assortment that optimally places, prices, and promotes products; (2) focusing on high-gross margin prepared food and dispensed beverages, which have historically generated about 63% of revenue less cost of goods sold despite representing 36% of total revenue; (3) operating in smaller communities not served by national chains, where a broader selection of products is offered at competitive prices; (4) owning most real estate to control costs; (5) expanding the wings offering across all stores; and (6) leveraging the Casey's Rewards program to enhance guest loyalty and the digital experience.
As of April 30, 2026, the Company had 23,490 full-time and 26,358 part-time Team Members. Approximately 94% are store Team Members, 1% are field management and related Team Members, 1% work in distribution centers, 1% are fuel or grocery drivers, and 3% work at the Store Support Center. The Company emphasizes a culture called Casey's CARES (Commitment, Authenticity, Respect, Evolving, Service) and provides market-competitive pay and benefits, performance-based compensation, a 401(k) plan with a 6% match in Company stock, a Team Member Support Fund, and extensive training and leadership development programs. There are no collective bargaining agreements.
Fiscal 2026 total revenue increased 10.2% to $17.56 billion from $15.94 billion in fiscal 2025. The Fikes acquisition contributed $1.03 billion in incremental revenue during the first six months. Net income rose 30.7% to $714.4 million, driven by strong inside-store performance and expanded fuel margins. Diluted earnings per share grew 30.9% to $19.16, reflecting the bottom-line improvement. Gross margin (revenue less cost of goods sold excluding depreciation and amortization) improved to 24.6% of revenue from 23.5%, powered by inside-store margin gains (prepared food 58.6% vs 58.2%; grocery 35.8% vs 35.0%) and fuel margin expansion (14.1% vs 12.7% of revenue). Operating expenses rose 11.2% to $2.84 billion, with about half from store growth and the Fikes full-year impact, and 2% from higher variable compensation and charitable contributions.
Management provided no explicit quantitative guidance for fiscal 2027. The three-year strategic plan ending in fiscal 2026 achieved 504 new stores (vs 350 target), EPS annualized growth of 17.2%, and Casey's Rewards members over 10 million. A new three-year plan will be announced in June 2026. The company continues to expand EV charging stations (282 at 64 stores) selectively. Liquidity remains strong with an $850 million revolving credit facility and $50 million line of credit. Management expects future capital needs to be funded by operations and existing facilities.
As of April 30, 2026, Casey's held $523M in cash and equivalents, up from $327M a year ago, providing ample liquidity. Total debt (including finance leases) stood at $2.43B, down from $2.51B, reflecting net repayments. Shareholders' equity increased to $3.95B from $3.51B, driven by net income of $714M partially offset by share repurchases and dividends. Inventory totaled $557M, with fuel inventories rising to $217M from $136M, while merchandise inventories were essentially flat. The company also reported a deferred revenue liability of $72.7M from its Casey's Rewards program.
The Notes do not disclose any material purchase commitments aside from lease obligations, which are detailed separately. Operating lease liabilities total $473.5M (present value) and finance lease liabilities $115.2M. Employment agreements with executives are disclosed but no dollar amounts beyond minimum compensation. No other significant contractual obligations are highlighted.
Casey's returned capital to shareholders through dividends and buybacks. Dividends paid totaled $83.1M in FY2026, up from $72.3M, with per-share dividends rising 14% YoY to $2.28 annual. Share repurchases under the original $400M program amounted to $200.5M (355,107 shares), leaving $94.6M available. Subsequently, on June 4, 2026, the Board approved an expanded repurchase program authorizing up to $1.0B total. Capital expenditures were $655.9M, primarily for store acquisitions and maintenance, representing 3.7% of sales. The company did not issue any new debt during the year; instead, it repaid $94.9M, including finance lease payments, resulting in a net debt reduction of $76.9M.
Casey's operates as a single reportable segment: convenience stores. The CODM evaluates performance based on net income. The company provides disaggregated revenue and cost of goods sold by product category: prepared food & dispensed beverage, grocery & general merchandise, and fuel. However, segment-level operating income is not reported because operating expenses are not separable by these categories. Geographic presence spans 19 states, primarily in the Midwest, with the Fikes acquisition adding stores in Texas, Alabama, Florida, and Mississippi.
Cybersecurity & Data Privacy: The company processes large amounts of personal data (credit card, guest, employee). A breach could result in litigation, regulatory action, and reputational damage. Notably, the company acknowledges that AI adoption may increase attack sophistication. Incident response plans are in place, but no assurance of prevention.
Food Safety: Any actual or reported foodborne illness, contamination, or regulatory investigation could severely hurt sales. Reliance on vendors for safe ingredients adds risk.
Labor Challenges: Difficulty recruiting and retaining drivers, distribution center staff, and store team members in a rising wage environment is a near-term pressure. Wage mandates increase costs.
IT Systems: Reliance on third-party software and AI introduces risks of disruption or biased outputs. System failures could limit operations.
Insurance & Hazards: Self-insured for many operational risks (e.g., fuel transport, storage tanks). Uninsured losses from fires, spills, or accidents could be material. Fuel transport in own trucks amplifies exposure.
Commodity Costs: Cheese (largest food cost) and other commodities subject to volatile pricing; inability to fully pass through costs hurts margins.
Credit Card Fees: $279M in fiscal 2026 – a significant expense tied to transaction volumes and fuel prices, with limited control.
Debt Covenants: Senior notes and credit facility contain financial covenants; breach could accelerate debt.
Stock Volatility & Dilution: Common stock price could fluctuate due to operating results, market conditions, and share issuance for acquisitions.
Tax & Government Regulation: Extensive federal, state, and local taxes (income, excise, sales, property, tobacco). Changes could increase costs or reduce consumer spending.
Tobacco/Nicotine: ~9% of revenue and gross profit; FDA regulations, tax increases, and anti-smoking campaigns could reduce demand. Manufacturer rebates are not guaranteed.
Wage & Labor Laws: State-mandated minimum wage increases and paid leave laws raise operating expenses.
Economic Conditions: Inflation, interest rates, fuel prices, and unemployment affect consumer spending and miles driven. Agricultural downturns hurt rural stores.
Fuel Demand: Electric vehicles, fuel efficiency mandates, and climate concerns may reduce long-term demand for gasoline, which is 62% of revenue.
Weather: Majority of stores in Midwest (prone to tornadoes, snow) and Florida (hurricanes); adverse weather can disrupt operations and sales.
Petroleum Volatility: Wholesale fuel costs are volatile due to geopolitical events (Middle East, South America, Europe). Supply disruptions could increase costs and reduce margins.
Competition: Intense competition from convenience chains, supermarkets, discount stores, and fast-food outlets. New entrants with greater resources can pressure pricing.
Acquisitions: Growth via acquiring stores or building new ones involves risks in site selection, integration, financing, and regulatory approvals. Diversion of management attention.
CFO of $1.38B exceeded net income of $714M by $663M, primarily due to non-cash charges: D&A of $450M, share-based comp of $63M, and deferred taxes of $95M. Capex of $656M represented 48% of CFO, a moderate reinvestment rate. Working capital was a net source of cash: receivables increased $60M, inventories $90M, prepaids $5M, but payables rose $159M and accruals $36M, resulting in a net positive $60M from working capital.
Capital returns: dividends of $83M and share repurchases of $201M totaled $284M, covered 4.9x by CFO. Investing also included $142M in acquisitions, indicating growth via M&A. Notable: no significant anomalies, but deferred taxes and inventory changes (LIFO adjustments) were material. Overall, cash generation remains robust with ample coverage for investments and shareholder returns.