CASEYS GENERAL STORES INC (CASY)
Summary of Casey’s General Stores FY2025 10-K: • Business Model: 2,904 stores in 20 states under Casey’s, CEFCO, GoodStop, etc., offering fuel, fresh prepared foods (pizza, sandwiches, bakery), groceries, tobacco, lottery, and car washes. 3 distribution centers, first fuel terminal in Waco, Texa...
Casey’s General Stores, Inc.: A Deep Dive into the FY2025 10-K
Casey’s General Stores, Inc. (NASDAQ: CASY) wrapped up fiscal 2025 with significant expansion, solid cash flows, and a strengthened food business. With 2,904 convenience stores across 20 states, Casey’s has built a reputation for competitive pricing, fresh prepared foods, and community-focused service. The addition of the Fikes/CEFCO acquisition catapulted store count and added its first fuel terminal, marking the largest acquisition in the company’s history.
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Table of Contents
- Prepared Food & Beverages
- Grocery & General Merchandise
- Retail Fuel & Wholesale
- Income Statement Trends
- EBITDA and Profitability
- Cash Flow & Capital Deployment
- Balance Sheet Strength
Business Overview
Casey’s General Stores, founded in 1967 and headquartered in Ankeny, Iowa, operates primarily under the name “Casey’s” and several regional banners (“CEFCO,” “Bucky’s,” “GoodStop,” and “Lone Star Food Store”). With a mix of self-operated stores and a growing wholesale fuel network, Casey’s footprint covers convenience store essentials: freshly prepared pizza, sandwiches, donuts, beverages, fuel, lottery, and other day-to-day needs.
Core Advantages
- Small-town reach: 71% of stores serve populations under 20,000.
- Differentiated food program: kitchens in most stores, fresh pizza since 1984, expanded hot sandwiches, bakery items, and breakfast offerings.
- Strong logistics: Three distribution centers (Iowa, Indiana, Missouri) and a growing fuel terminal network.
- Digital engagement: Casey’s Rewards app surpassed 9 million members, driving repeat visits and data-driven promotions.
FY2025 Highlights
- Revenue: $15.94 billion, up 7.3% from FY2024.
- Net Income: $546.5 million, up 8.9% year-over-year (EPS $14.64 diluted).
- EBITDA: $1.20 billion, a 13.3% increase from the prior year.
- Same-store metrics: +3.5% prepared food, +2.3% grocery, +0.1% fuel gallons.
- Store growth: Added 270 stores, including 198 via the Fikes acquisition.
- Cash flow: Operating cash flows of $1.09 billion, capex of $506 million, and $1.1 billion in acquisition spend.
Segment Performance
Prepared Food & Beverages
$1.61 B in revenue (10.1% of total)
- Gross margin: 58.2% (down modestly versus 58.7% in FY2024 due to acquired store mix).
- Drivers: Pizza, hot sandwiches, bakery, and dispensed beverages remain high-margin staples.
Grocery & General Merchandise
$4.14 B in revenue (26.0% of total)
- Gross margin: 35.0%, up from 34.1%.
- Key categories: Non-alcoholic beverages, beer, tobacco, snacks, and essentials.
Retail Fuel & Wholesale
$9.78 B in revenue (61.3% of total)
- Fuel cents per gallon: 38.7¢ (vs. 39.5¢ prior year).
- Gallons sold: 3.20 B gallons, +13.0% (store growth drove volume; same-store gallons flat at +0.1%).
- Wholesale network: ~2% of revenue, expanding through acquired CEFCO dealer agreements.
Strategic Growth Initiatives
Store Expansion
- Largest growth year in company history: 270 net new stores.
- Geographic diversification: First entry into Alabama, Florida, Mississippi via CEFCO.
Food-First Strategy
- Continued roll-out of signature pizza and fresh kitchens.
- New private-label offerings to enhance margins.
Digital & Loyalty
- Casey’s Rewards 9 M+ members, fueling personalized offers.
- Investments in mobile ordering, curbside pickup, and third-party partnerships.
Operational Efficiency
- Supply chain optimization: Expanded distribution capacity in Missouri and Indiana.
- Labor productivity: 12 consecutive quarters of same-store labor hours reduction.
Financial Analysis
Income Statement Trends
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Revenue | $15.941 B | $14.863 B | +7.3% |
| COGS (excl. D&A) | $12.188 B | $11.515 B | +5.9% |
| Gross Profit | $3.752 B | $3.348 B | +12.1% |
| Operating Expenses | $2.552 B | $2.289 B | +11.6% |
| Operating Income | $1.199 B | $1.058 B | +13.3% |
| Net Income | $547 M | $502 M | +8.9% |
EBITDA and Profitability
- EBITDA: $1.20 B vs. $1.06 B in FY2024.
- Adjusted margin expansion driven by inside sales mix and fuel volume.
Cash Flow & Capital Deployment
- Operating cash flows: $1.09 B (+22%)
- Capex: $506 M (new stores, remodels, distribution upgrades)
- Acquisitions: $1.239 B (Fikes) + $330 M prior year
- Share repurchases: Suspended during FY2025; $295 M capacity remains
- Dividends: $2.00/share, 27% increase YoY
Balance Sheet Strength
- Total assets: $8.21 B
- Net debt: $2.18 B (post-Fikes funding)
- Liquidity: $326 M cash, $850 M revolver, $50 M bank line
- Leverage: Debt/EBITDA roughly 1.8× (conservative for retail)
Key Risks & Contingencies
Industry & Macro
- Fuel price volatility: Margins tied to crude and wholesale costs.
- EV & renewable fuels: Shifts in vehicle technology may alter fueling demand.
- Economic cycles: Discretionary spending could moderate in downturns.
Operational
- Supply chain & labor: Driver shortages, distribution disruptions, commodity inflation.
- Cybersecurity & data privacy: High transaction volume increases threat exposure.
- Legal challenges: FLSA lawsuits (Store Manager classification) and wage & hour claims.
Regulatory & Environmental
- Environmental cleanup: Underground tank remediation costs accrue over decades.
- Age-restricted products: Regulations on tobacco, alcohol, lottery.
- Tax law changes: Impact on state and federal effective tax rates.
Corporate Governance & Social Responsibility
- Team Member focus: 49 K Team Members, 57% female, ongoing leadership development.
- Community impact: Casey’s Team Member Support Fund, local school donations via Rewards.
- Governance: Tenured board, independent committees, Financial Code of Ethics.
Investment Outlook
Strengths: Proven small-town execution, fresh food leadership, robust loyalty platform, disciplined capital allocation.
Challenges: Fuel dependency, cost inflation, digital competitors and EV transitions.
Valuation: Steady mid-single-digit organic growth, accretive M&A pipeline, strong free cash flow generation. We rate Casey’s as a 7.4/10 for moderate risk/reward balance, with upside from food expansion but mindful of fuel headwinds.
Net Profit: $546.5 million in FY2025 (EPS $14.64 diluted).
For a deeper analysis and complete financial models, read our full FY2025 10-K review.