Q1 FY2027
Filed Sep 8, 2026Casey's Announces First Quarter Results
Diluted EPS increased 27.7%, net income increased 27.1%, and EBITDA increased 17.1%, supported by higher inside and fuel gross profit. Inside same-store sales increased 3.2%, total inside gross profit increased 6.3%, and fuel gross profit increased 19.6%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $ 5,678,336 (in thousands) | – | – |
| Cost of goods sold (excluding depreciation and amortization, shown separately below)GAAP | 4,439,142 (in thousands) | – | – |
| Gross profitother | $ 1,239,194 (in thousands) | – | – |
| Total gross profit marginother | 21.8 % | – | – |
| Operating expensesGAAP | $ 754,111 (in thousands) | – | 8.0% |
| Credit card feesGAAP | $ 85,709 (in thousands) | – | – |
| Depreciation and amortizationGAAP | $ 115,994 (in thousands) | – | – |
| Interest, netGAAP | $ 22,059 (in thousands) | – | – |
| Income before income taxesGAAP | $ 347,030 (in thousands) | – | – |
| Federal and state income taxesGAAP | $ 73,310 (in thousands) | – | – |
| Net incomeGAAP | $ 273,720 (in thousands) | – | 27.1% |
| Basic earnings per shareGAAP | $ 7.40 | – | – |
| Diluted earnings per shareGAAP | $ 7.37 | – | 27.7% |
| EBITDAnon-GAAP | $ 485,083 (in thousands) | – | 17.1% |
| Inside salesother | $ 1,777,541 (in thousands) | – | 5.6% |
| Inside same-store salesother | 3.2 % | – | – |
| Inside gross profitother | $ 749,809 (in thousands) | – | 6.3% |
| Inside marginother | 42.2 % | – | – |
| Fuel gallons soldother | 934,212 (in thousands) | – | 2.5% |
| Same-store fuel gallons soldother | (0.3) % | – | – |
| Fuel gross profitother | $ 446,929 (in thousands) | – | 19.6% |
| Fuel margin (cents per gallon, excluding credit card fees)other | 47.8 ¢ | – | – |
| Net cash provided by operating activitiesGAAP | $ 384,072 (in thousands) | – | – |
| Purchase of property and equipmentGAAP | $ 194,395 (in thousands) | – | – |
| Net cash used in investing activitiesGAAP | $ 234,721 (in thousands) | – | – |
| Net cash used in financing activitiesGAAP | $ 148,283 (in thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Prepared Food & Dispensed BeveragePrepared food and dispensed beverage same-store sales was driven primarily by positive traffic, led by whole pizzas. | $ 492,580 (in thousands) | – | – |
| Grocery & General MerchandiseGrocery and general merchandise same-store sales had excellent performance in non-alcoholic beverages. | $ 1,284,961 (in thousands) | – | – |
| FuelTotal fuel gallons sold increased 2.5% compared to the prior year due to the store count increase, slightly offset by a modest decrease in same-store gallons sold. | $ 3,724,798 (in thousands) | – | – |
| OtherFuel category does not include wholesale fuel or terminal activity, which is included in Other. | $ 175,997 (in thousands) | – | – |
Fiscal 2027 outlook
- Gross margininside margin above 42%
- Operating expensesTotal operating expenses are expected to increase approximately 5% to 7%.
- Tax rateapproximately 24% to 26% for the year
- NoteInside same-store sales to increase 2% to 5%.
- NoteSame-store fuel gallons sold to be negative 1% to positive 1%.
- NoteEBITDA to increase 8% to 10%, which would imply 35% on a two-year stack basis at the midpoint of the range.
- NoteOpen at least 120 stores in fiscal 2027 through a mix of M&A and new store construction.
- NoteNet interest expense is expected to be approximately $95 million.
- NoteDepreciation and amortization is expected to be approximately $490 million.
- NotePurchase of property and equipment is expected to be approximately $800 million.
Capital returns
- During the quarter, the Company repurchased approximately $45.6 million of shares.
- The Company has approximately $973 million remaining under its existing share repurchase authorization.
- The Board of Directors approved a quarterly dividend of $0.65 per share.
- The dividend is payable November 13, 2026, to shareholders of record on November 1, 2026.
- Payments of cash dividends were $ 22,283 (in thousands), compared with $ 19,655 (in thousands).
- Repurchase of common stock and payment of related excise taxes were $ 44,856 (in thousands), compared with $ 31,251 (in thousands).
What drove it
- Higher inside and fuel gross profit drove the increases in net income, diluted EPS, and EBITDA, partially offset by higher operating expenses.
- Prepared food and dispensed beverage same-store sales increased 4.8 %, while grocery and general merchandise same-store sales increased 2.7 %.
- Prepared food and dispensed beverage margin was 59.3 %, compared with 58.0 %, and grocery and general merchandise margin was 35.6 %, compared with 35.9 %.
- Inside margin benefitted primarily from favorable mix shift and cost of goods management.
- Fuel gross profit increased due to an increase in gallons sold as well as fuel margin.
- Store count increased to 2,959 at July 31, 2026 from 2,944 at April 30, 2026, reflecting 9 new store construction openings, 12 acquisitions, and (6) closed or divested stores.
Concerns
- Same-store fuel gallons sold were down (0.3) % compared to the prior year.
- Operating expenses increased 8.0% during the first quarter.
- Operating 64 more stores than prior year accounted for approximately 2% of the operating-expense increase.
- Same-store credit card fees added approximately 1.5% of the operating-expense increase.
- Same-store employee expense contributed to approximately 1% of the operating-expense increase, primarily due to increases in labor rates, while same-store labor hours were nearly flat.
- Insurance was responsible for approximately 1% of the operating-expense increase.
- Fuel margin is subject to a volatile environment, as described by management.
What to watch
- Progress toward fiscal 2027 inside same-store sales growth of 2% to 5% and inside margin above 42%.
- Same-store fuel gallons performance against the fiscal 2027 outlook of negative 1% to positive 1%.
- Operating-expense growth against the fiscal 2027 expectation of approximately 5% to 7%.
- Execution of the plan to open at least 120 stores in fiscal 2027 through M&A and new store construction.
- Integration of the Fikes acquisition, which management said was running ahead of schedule.
- EBITDA growth against the fiscal 2027 outlook of 8% to 10%.
Balance sheet and cash flow
- Available liquidity was approximately $1.4 billion at July 31, 2026, consisting of approximately $524 million in cash and cash equivalents on hand and approximately $857 million in available borrowing capacity on existing lines of credit.
- Cash and cash equivalents were $ 524,059 (in thousands) at July 31, 2026, compared with $ 522,991 (in thousands) at April 30, 2026.
- Current maturities of long-term debt and finance lease obligations were $ 104,323 (in thousands) at July 31, 2026, compared with $ 101,357 (in thousands) at April 30, 2026.
- Long-term debt and finance lease obligations, net of current maturities, were $ 2,326,200 (in thousands) at July 31, 2026, compared with $ 2,330,237 (in thousands) at April 30, 2026.
- Total assets were $ 9,121,263 (in thousands) at July 31, 2026, compared with $ 8,936,055 (in thousands) at April 30, 2026.
- Total liabilities were $ 5,027,350 (in thousands) at July 31, 2026, compared with $ 4,984,336 (in thousands) at April 30, 2026.
- Total shareholders' equity was $ 4,093,913 (in thousands) at July 31, 2026, compared with $ 3,951,719 (in thousands) at April 30, 2026.
- Payments for acquisition of businesses, net of cash acquired, were $ 43,904 (in thousands), compared with $ 9,495 (in thousands).
- Proceeds from long-term debt were $ 42,625 (in thousands), compared with —.
- Payments of long-term debt and finance lease obligations were $ 45,207 (in thousands), compared with $ 42,163 (in thousands).
- Net increase in cash and cash equivalents was $ 1,068 (in thousands), compared with $ 131,411 (in thousands).
Analysis
Casey's reported a strong first quarter ended July 31, 2026. Diluted EPS was $ 7.37, up 27.7%, while net income was $ 273,720 (in thousands), up 27.1%, and EBITDA was $ 485,083 (in thousands), up 17.1%. The company attributed the earnings increases to higher inside and fuel gross profit, partially offset by higher operating expenses. Total revenue was $ 5,678,336 (in thousands), compared with $ 4,567,106 (in thousands) in the prior-year period.
Inside performance was led by prepared food and dispensed beverage. Inside same-store sales increased 3.2 %, with prepared food and dispensed beverage same-store sales up 4.8 % and grocery and general merchandise same-store sales up 2.7 %. Management cited positive traffic led by whole pizzas in prepared food and strong non-alcoholic beverage performance in grocery and general merchandise. Inside gross profit increased 6.3% to $ 749,809 (in thousands), and inside margin improved to 42.2 % from 41.9 %, benefiting primarily from favorable mix shift and cost of goods management.
Fuel added materially to gross-profit growth despite a decline in same-store gallons. Fuel gross profit increased 19.6% to $ 446,929 (in thousands), while fuel margin increased to 47.8 ¢ from 41.0 ¢. Total fuel gallons sold increased 2.5% to 934,212 (in thousands), supported by store-count growth, but same-store gallons sold declined (0.3) %. The company ended the quarter with 2,959 stores after 9 new store construction openings, 12 acquisitions, and (6) closed or divested stores.
Operating expenses increased 8.0% to $ 754,111 (in thousands), exceeding the company's fiscal 2027 operating-expense growth outlook of approximately 5% to 7%. The release identified operating 64 more stores, same-store credit card fees, same-store employee expense, and insurance as contributors. Cash flow from operations was $ 384,072 (in thousands), while purchase of property and equipment was $ 194,395 (in thousands) and payments for acquisition of businesses were $ 43,904 (in thousands). The company repurchased approximately $45.6 million of shares and declared a quarterly dividend of $0.65 per share.
Fiscal 2027 outlook was unchanged. Casey's continues to expect inside same-store sales growth of 2% to 5%, inside margin above 42%, same-store fuel gallons of negative 1% to positive 1%, EBITDA growth of 8% to 10%, and at least 120 store openings. The central reported-period measures to monitor are whether the company sustains positive prepared-food traffic and elevated fuel margin, whether same-store fuel gallons improve, and whether operating-expense growth moves toward the fiscal-year outlook as store expansion and Fikes integration continue.
Management, verbatim
We are off to a great start on our three-year strategic plan, highlighted by a nearly 28% increase in diluted EPS.
Darren Rebelez, Chairman, President and CEO
Guests are responding well to our compelling value proposition on our high-quality prepared food, especially in whole pies.
Darren Rebelez, Chairman, President and CEO
We accomplished all of this while running ahead of schedule on our integration of the Fikes acquisition.
Darren Rebelez, Chairman, President and CEO
Not in the filing
stated, not guessed- Previous outlook document was not provided; therefore, reported results cannot be compared with prior guidance.
- Free cash flow was not reported.
- Revenue guidance was not reported.
- Prior-quarter comparisons were not reported for the listed key metrics.
- A GAAP tax rate for the reported quarter was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.