Casey's General Sees 23% EBITDA Jump to $1.5B, Plans 120 Stores
CASY•Casey's General Stores saw Q4 operating expenses rise 10.1% ($67M) from 40 additional stores, and forecasts Q1 expenses up high single digits due to higher credit card fees. EBITDA hit a record $1.5B (+23%) and diluted EPS reached $19.16 (+31%), with 120 new stores planned for fiscal 2027.
1. Q4 Financial Performance
Casey's General saw Q4 operating expenses rise 10.1% ($67M) driven partly by the addition of 40 stores and same-store expense increases of 3.7% excluding card fees. The effective tax rate climbed to 23.7% from 23% due to unfavorable permanent differences.
2. Profit and Earnings
The company generated record EBITDA of $1.5B, a 23% year-over-year increase, and achieved diluted EPS of $19.16, up 31%. Net income reached $714M, marking its highest annual profit.
3. First-Quarter Guidance
For Q1, operating expenses are forecast to increase in the high single digits, reflecting higher credit card fees tied to elevated retail fuel prices. Management noted that fuel price volatility has allowed retention of margins during recent market swings.
4. Growth Outlook
Casey's plans to open at least 120 new stores in fiscal 2027 through a combination of mergers and acquisitions and new-build locations, leveraging a favorable consolidation environment among smaller convenience players.
