Whole pizza pies, thin crust pizza give Casey's General Stores a lift
Shares of convenience-store chain Casey's General Stores Inc. (CASY) rose after hours Monday after its first-quarter per-share profit and same-store sales inside its retail locations topped Wall Street's estimates, with management crediting "whole pizza pies and the successful launch of Casey's Thin Crust Pizza" for the gains despite a "more normalized" backdrop. The company reported net income of $169.2 million, or $4.52 a share, compared with $152.9 million, or $4.09 a share, in the same quarter last year. Revenue fell to $3.87 billion from $4.45 billion in the prior-year quarter. So-called "inside" same-store sales -- or sales of things like food, drinks and groceries -- rose 5.4%, above Consensus Metrix forecasts for a 4.6% gain. Analysts polled by FactSet expected earnings per share of $3.36, on revenue of $3.9 billion. Shares rose 2.6% after hours. "With a more normalized macro operating environment in the quarter, the strength of Casey's unique business model was on full display. Inside same-store sales were strong, driven by whole pizza pies and the successful launch of Casey's Thin Crust Pizza," Chief Executive Darren Rebelez said in a statement. He also said the company, which sells gasoline as well, "continues to do an excellent job striking the right balance between gallon growth and gross profit margin," with fuel margin of 41.6 cents per gallon. Food-ingredient costs fell. The company said it was under agreement to acquire 125 stores, including 63 stores previously announced from EG Group.
-Bill Peters
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
09-11-23 1728ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening In the Markets This Week
-
Can the Fed Declare Victory on Inflation?
-
After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?
-
A Cheap Dividend Aristocrat to Buy Before It Bounces Back
-
Alibaba Earnings: More Positive Outlook Despite Mixed Results
-
After Earnings and a 56% Rally In 2024, Is Arm Stock a Buy, a Sell, or Fairly Valued?
-
How Morningstar Rates Stocks
-
After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?
-
Home Depot Earnings: Macro Factors Pinch Demand, but Long-Term Outlook Intact
-
Tariffs On Chinese EVs Offer US Automakers a Chance to Capture Demand