Casey's General Stores (CASY) saw its shares climb roughly 3% in extended trading Tuesday after the company reported fiscal fourth-quarter results that topped Wall Street expectations. The after-hours move added to a 1.3% gain during the regular session, which closed at $761.18.
The convenience-store operator posted earnings of $4.37 per share for the period ended April 30, well above the $3.31 consensus estimate from analysts surveyed by FactSet and cited by Barron's. Net income came in at $162.7 million, compared with $102.6 million a year earlier. Revenue reached $4.57 billion, up from $3.99 billion and ahead of the $4.33 billion forecast.
Key drivers included a 5.5% rise in same-store sales, driven by growth in whole pizzas, appetizers, sides and non-alcoholic drinks. Fuel also contributed significantly, with same-store fuel gallons up 1.5% and fuel margin expanding to 46.9 cents per gallon from 37.6 cents a year ago. Total fuel gross profit jumped 29.1% to $397.4 million.
CEO Darren Rebelez said the company concluded its three-year strategic plan with “another record fiscal year,” ending on an “extremely high note.” He highlighted $714 million in net income for the full year and nearly $1.5 billion in EBITDA, which excludes interest, taxes, depreciation and amortization.
Casey's also announced a 14% increase in its quarterly dividend to 65 cents per share and expanded its share repurchase authorization to $1 billion. For fiscal 2027, the company guided for inside same-store sales growth of 2% to 5%, fuel gallons ranging from a 1% decline to a 1% increase, and EBITDA growth of 8% to 10%. The chain plans to add at least 120 stores through acquisitions and new builds.
The company's inclusion in the S&P 500 in April has boosted its visibility among index-focused portfolios. Tuesday's earnings provided an early test of whether the rally can sustain. Broader markets were mixed, with the S&P 500 down 0.26% and the Nasdaq falling 0.97%.
Casey's positions itself as the third-largest U.S. convenience retailer and the fifth-largest pizza chain, a combination that differentiates it from fuel-focused peers. Murphy USA (MUSA) also gained about 2% on Tuesday, but Casey's quarter benefited from both fuel margins and foodservice strength.
However, risks remain. Fuel margins can compress quickly if wholesale prices, demand or competition shift, and the company's guidance for flat fuel volumes in fiscal 2027 is a cautionary note. After-hours trading can be volatile, so Tuesday's rally may not hold when regular trading resumes.
Investors will look for more details during Wednesday's earnings call at 7:30 a.m. Central time. Key questions include the sustainability of fuel margins, whether pizza and hot food continue to drive store sales, and the capital requirements for store expansion.
