Casey’s (CASY), founded in 1959 in Ankeny, Iowa, operates convenience stores under the Casey’s and Casey’s General Store brands. The company generates revenue primarily from fuel, groceries, general merchandise, prepared food, and dispensed beverages. As of July 31, 2025, Casey’s operated 2,895 stores across several states, including Iowa, Missouri, Illinois, Texas, Alabama, Florida, and Mississippi. The company has expanded its presence over many years through new store openings and acquisitions.
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Company Snapshot
| Price | $538 | Category | Conservative | |
| Market Cap | $20.4B | Dividend | $2.28 | 0.40% |
| P/E Ratio | 36.13 | Analyst Avg | 1-Yr Target | $591 |
| Consensus EPS Estimate | 1Q | 2Q | 3Q | 4Q |
| 2026 | 6.20E | 5.43E | 2.92E | 3.25E |
| 2025 | 5.77A | 4.90E | 2.52E | 2.83E |
| 2024 | 4.83A | 4.85A | 2.33A | 2.63A |
*Aggressive/Moderate/Conservative labels describe broad business characteristics for educational purposes only. They are not risk ratings, investment guidance, or recommendations. A = Actual, E = Estimated. Market metrics such as beta, valuation multiples, and analyst estimates are widely referenced in financial research. Their relevance depends on an individual’s goals, time horizon, and risk tolerance. These figures are for informational purposes only and should not be interpreted as predictions or guidance.
Keys for Success
Casey’s fuel segment continues to outperform broader industry trends. It is increasing market share and maintaining healthy margins, all while expanding its fuel offerings. Fuel sales increased 7% year over year to $2,733.7 million in the first quarter. Fuel gallons sold jumped 18% to $911.8 million, driven by increased store count and a 1.7% rise in same-store gallons. This outperformance is a clear indication of Casey’s ability to capture market share.
The grocery & prepared food segment continues to gain strength. At its stores, Casey’s offers fuel, food, and snacks, as well as EV charging, gift cards, and credit cards. In addition to its made-from-scratch pizzas, Casey’s popular prepared foods include doughnuts, subs, and sandwiches. Grocery and general merchandise revenues grew 14.6% in the first quarter to $1,225.4 million, with same-store sales up 3.8%. Margins improved 50 basis points to 35.9%. Prepared food and dispensed beverage sales rose 13.2% to $458.4 million, led by continued momentum in whole pies, bakery, and beverage offerings.
Strategic acquisitions and new stores are tracking well. The Fikes/CEFCO acquisition continues to strengthen Casey’s store footprint, expanding its presence in attractive new markets and laying the groundwork for long-term growth and synergies. The company expects the most significant synergy capture to occur once kitchen remodels and store conversions are completed over the next year. Longer term, management reaffirmed its plan to open at least 80 new stores in fiscal 2026, advancing its three-year target of approximately 500 net new stores through a mix of new builds and strategic acquisitions.
Areas to Watch
Casey’s is facing mounting margin pressure as rising operating expenses weigh on profitability, primarily due to the addition of 221 stores. The company’s debt-fueled acquisition strategy is creating a significantly higher interest expense burden that will weigh on profitability. Stiff competition in the convenience store and fuel retail sector could significantly pressure Casey’s performance. Declining consumer sentiment could weigh on Casey’s sales performance.
Mark Notes
What stands out is Casey’s ability to execute its tried-and-true business model of continued expansion, paired with the efficient operation of its stores. A convenience store might not seem like a good place for beginners to look for an exciting investment. However, since April 2015, the stock is up 519%, compared with 275% for the S&P 500. Past performance is not an indication of future returns.
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This article is for general informational and educational purposes only. It is not intended as financial advice, investment guidance, or a recommendation to buy or sell any security. The content reflects publicly available information and broad market commentary. Readers should conduct their own research and consult a licensed financial professional before making investment decisions.