Casey’s Reports Strong Earnings but Weak Same-Store Sales Send Stock Down
On September 9, 2026, Casey's General Stores reported strong fiscal first-quarter earnings with revenue of $5.68 billion and EPS of $7.37, both exceeding expectations. However, the stock fell by roughly 10-15% due to weaker-than-expected same-store sales growth at just 3.2%, below analysts' forecast of 3.8%. CEO Darren Rebelez attributed this partly to a volatile fuel environment and customer behavior shifts toward fewer gallons per visit. Despite the soft sales, Casey's maintained strong profitability in its fuel segment with gross profit rising by nearly 20% due to higher margins. Prepared food also contributed positively with increased same-store sales and margin expansion. EBITDA grew 17.1%, showing resilience even amid weaker retail performance. The company remains on track for store growth, planning at least 120 new locations in fiscal 2027. However, the bear case highlights concerns over slowing consumer demand across multiple categories like groceries and prepared food. Management did not raise its full-year guidance despite strong Q1 results, suggesting potential moderation ahead.
Tickers: $CASY
Topics: ebitda-growth fuel-margin profitability same-store-sales