Key Takeaways
- Shares of Casey’s climbed 15% on Wednesday, reaching $877 following stronger-than-anticipated quarterly results
- Earnings per share registered at $4.37 compared to analyst predictions of $3.31; total revenue reached $4.57B versus $4.33B forecasts
- Fuel division gross profit jumped 29% year-over-year to $397.4 million, significantly exceeding the $331M consensus
- Comparable store sales increased 5.5%, outpacing the projected 4.9%, with food service—especially pizza—driving growth
- The company increased its quarterly dividend by 14% to 65 cents per share and projects EBITDA expansion of 8%–10% for fiscal 2027
Casey’s General Stores (CASY) stock experienced a remarkable 15% surge to $877 during Wednesday’s trading session, positioning it among the top performers in the S&P 500 following the convenience retailer’s exceptional fiscal fourth-quarter earnings release on Tuesday night.
Casey’s General Stores, Inc., CASY
Earnings per share reached $4.37, representing a 66% year-over-year increase and substantially surpassing Wall Street’s $3.31 projection. Total revenue expanded 14% to $4.57 billion, exceeding the consensus estimate of $4.33 billion.
The stock has now appreciated 59% throughout 2026 and is approaching its all-time closing peak of $888.36 achieved on May 13.
The most impressive metric was the fuel segment. Gross profit from fuel operations surged 29% to $397.4 million—well above analyst expectations of $331 million. Per-gallon fuel margins reached 46.9 cents compared to the anticipated 39.41 cents.
Gasoline prices have experienced substantial increases this year. The current national average for regular unleaded gasoline stands at $4.16 per gallon, marking approximately a 46% increase from the $2.84 level at year’s beginning. Following the outbreak of the U.S.-Iran conflict in late February, the average gallon price has climbed 39%.
Strong Performance Across Fuel and Food Categories
Chief Executive Officer Darren Rebelez praised the fuel division’s strategy of optimizing both volume and margin. Across the complete fiscal year, fuel gross profit expanded 21%.
Comparable store sales for inside merchandise—excluding fuel—grew 5.5% during the fourth quarter, surpassing expectations of 4.9%. Pizza sales received particular recognition as a significant growth catalyst.
For the entire fiscal 2026 period, Casey’s delivered full-year revenue growth of 10.7% and earnings growth of 30.9% to $19.16 per share.
Keith Bradley Thomas from KeyBanc highlighted that the results “demonstrate ongoing positive momentum throughout the organization.”
Forward-Looking Guidance for Fiscal 2027
Looking ahead, Casey’s provided guidance for inside same-store sales growth ranging from 2% to 5%, with inside margins anticipated to exceed 42%. Fuel gallon volumes are projected to remain flat or decline by up to 1%.
EBITDA growth is expected to fall within the 8% to 10% range. Current Wall Street models project 9% revenue expansion for fiscal 2027.
The company also announced a 14% increase to its quarterly dividend, raising it to 65 cents per share. The dividend will be distributed on August 14 to shareholders of record as of August 1.
RBC Capital Markets adjusted its price target upward to $794 from $792 while maintaining a Sector Perform rating, acknowledging that Casey’s delivered superior results across all key performance indicators.
Casey’s became an S&P 500 constituent in April 2026 and currently operates over 2,900 locations, establishing itself as the third-largest convenience store operator in the United States.
