Shares of convenience-store chain Casey’s General Stores Inc. (CASY, -1.02%) saw a rise in after-hours trading on Monday, following its impressive first-quarter performance. The company’s per-share profit and same-store sales exceeded Wall Street’s expectations, and management attributes this success to the introduction of Casey’s Thin Crust Pizza and its popular “whole pizza pies.” Despite a “more normalized” economic climate, Casey’s General Stores Inc. reported net income of $169.2 million, or $4.52 per share, compared to $152.9 million, or $4.09 per share, in the same quarter last year. Although revenue dipped to $3.87 billion from $4.45 billion in the previous year’s quarter, the company’s “inside” same-store sales, which include food, drinks, and groceries, saw a noteworthy 5.4% increase—exceeding Consensus Metrix forecasts of 4.6%. Analysts surveyed by FactSet anticipated earnings per share of $3.36 and revenue of $3.9 billion. In response to the positive financial results, shares rose by 2.6% after hours.
Unique Business Model Shines
CEO Darren Rebelez expressed pride in Casey’s unique business model, which thrived despite the challenging conditions. Rebelez highlights the strength in the company’s inside same-store sales, driven by the popularity of their whole pizza pies as well as the successful launch of Casey’s Thin Crust Pizza. Furthermore, Casey’s General Stores Inc. effectively balanced its gallon growth and gross profit margin in the fuel sector with a fuel margin of 41.6 cents per gallon. Additionally, the company experienced a drop in food-ingredient costs.
Expanding Business Reach
In a bid to expand its operations, Casey’s General Stores Inc. has entered into an agreement to acquire 125 stores, including the previously announced 63 stores from EG Group.
Overall, Casey’s General Stores Inc. had a strong quarter, with its unique business model, successful pizza offerings, and efficient management helping it navigate through a more normalized economic environment.