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

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09-11-23 1728ET

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