Casey's shares hit record high as convenience store operator sells more pizzas

Takeaways

Demand for pizza helped boost sales at Casey's General Stores, and the convenience store operator's stock price hit a record.
Casey's General Stores' ;s helped increase pizza sales. Net income for the first quarter of fiscal 2024 increased 11% from the 2022 quarter and was a third higher than analysts' estimates. estimates.
Casey's said it plans to add 150 stores in its current fiscal year.

Shares of Casey's General Stores Inc. (CASY) hit a record high after the convenience store operator reported a better-than-expected profit on pizza demand.

Casey's reported first-quarter fiscal 2024 earnings per share (EPS) of $4.52, up 11% from a year and over a year ago. third higher than analysts' forecasts. Revenue fell 13.1% to $3.87 billion, slightly below estimates.

The company said same-store sales rose 5.4%. % as it sold more whole pizzas and successfully launched its Casey's thin crust pizza. Same-store sales of groceries and general merchandise increased 5.2%, while those of prepared foods and dispensed beverages increased 5.9%. Same-store fuel sales rose 0.4%, although profits from that line item ultimately declined due to lower gasoline prices. Casey's said it reduced same-store working hours by 3%.

CEO Darren Rebelez said the company benefited from a “more normalized macro operating environment”, which he said allowed Casey's unique business model to be “on full display.” “.