EarningsQ1 2027 Earnings Report
DE:CS2 Q1 2027 EPS Results
Actual EPS€6.43
Consensus EPS€5.91
Beat/MissBeat by +€0.52
One Year Ago EPS€5.03
DE:CS2 Q1 2027 Revenue Results
Actual Revenue€4.95B
Expected Revenue€4.85B
Beat/MissBeat by +€102.38M
YoY Revenue Growth+24.33%
Earnings Announcement Details
QuarterQ1 2027
Date09/08/2026
TimeAfter Close
Conference CallTuesday, September 8, 2026
DE:CS2 Upcoming Earnings
Casey's General's next earnings date is estimated for December 14, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
DE:CS2 Q1 2027 Earnings Call
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Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Casey's reported substantial growth in EPS, net income, EBITDA, revenue, gross profit, prepared food, fuel margin, rewards membership, and remodeled-store performance, while maintaining strong liquidity and progressing toward its store growth and integration goals. The main challenges were category pressure in beer, snacks, and cigarettes; fuel-margin volatility; higher operating expenses; lower free cash flow; and temporary Cefco remodel disruption. Management characterized the remodel impacts as expected and remained confident in the strategic plan and growth opportunities.Company Guidance
Strong Earnings and EBITDA Growth
Diluted EPS was $7.37, up 28% from the prior year; net income was $274 million, up 27%; and EBITDA was $485 million, up 17% year over year and 40% on a 2-year stack basis.
Revenue and Gross Profit Expansion
Total revenue was $5.68 billion, an increase of $1.11 billion or 24.3%, driven primarily by higher inside sales, higher retail fuel prices, higher fuel gallons sold, and operating approximately 2% more stores. Total gross profit was $1.24 billion, up $127 million or 11.4% year over year and 29.7% on a 2-year stack basis.
Inside Sales and Margin Growth
Total inside sales increased 5.6% to $1.78 billion. Inside same-store sales increased 3.2%, or 7.7% on a 2-year stack basis, while inside gross profit margin expanded 30 basis points to 42.2%, primarily due to mix shift and solid cost-of-goods management.
Prepared Food and Dispensed Beverage Performance
Prepared food and dispensed beverage sales increased 7.4% to $493 million. Same-store sales rose 4.8%, or 10.7% on a 2-year stack basis, and gross profit margin increased 130 basis points to 59.3%. Growth was primarily traffic-driven with minimal price, and whole-pie units were up nearly double digits.
Prepared Food and Beverage Traffic Drivers
PFMDB transactions increased by more than 100 basis points, driving prepared food and dispensed beverage units up nearly 4%. Management cited Casey's abundant offering, compelling value, and continued innovation, including the bacon cheeseburger pizza limited-time offer.
Grocery and General Merchandise Growth
Grocery and general merchandise sales increased 4.9% to $1.28 billion. Same-store sales increased 2.7%, or 6.5% on a 2-year stack basis, with energy drinks and nicotine alternatives delivering double-digit growth.
Fuel Gross Profit and Market Share Gains
Fuel gross profit increased $73.4 million or 19.6%. Fuel margin was $0.478 per gallon, up $0.068 per gallon from the prior year, while same-store gallons sold declined only 0.3%. Management said Casey's continued to gain fuel market share; the Mid Continent region declined approximately 6% according to OPIS fuel gallons sold data, while Casey's 2-year same-store gallons were up 1.4% versus a 10% decline for the broader Mid Continent region.
Fikes Integration Progress
Casey's remained ahead of schedule on the Fikes integration. Approximately 1% of the total store base experienced planned disruption from remodeling legacy Cefco stores, and management said the resulting same-store sales headwind was slight and expected. Casey's remodeled approximately 50 Cefco stores during fiscal 2026 and 24 more in the first quarter of fiscal 2027.
Strong Remodel Performance
Stores remodeled to the Casey's format have performed exceptionally well. Average prepared food and dispensed beverage sales at remodeled stores increased 30% versus the same period before remodeling, and management said proof-of-concept stores with the full Casey's assortment for more than a year were still comping positively.
Store Growth Plan on Track
Casey's is on track to meet its goal of adding 120 stores during the fiscal year, with the company expecting approximately half to come from new-to-industry builds and half from small-deal M&A, give or take a couple.
Rewards Membership Expansion
The Casey's Rewards platform surpassed 11 million members.
Operational Efficiency Progress
Management said continuous-improvement initiatives have expanded to both stores and the enterprise, with a number of initiatives completed and many more on track for completion during the fiscal year.
Labor Productivity
The company met increased food demand without meaningfully increasing store labor hours. Same-store labor hours were roughly flat for the quarter.
Liquidity and Deleveraging
Available liquidity was $1.4 billion as of July 31, and the credit facility debt-to-EBITDA ratio was 1.5 times. Net interest expense declined $4.8 million to $22.1 million, primarily due to deleveraging associated with the Fikes transaction.
Tax Rate Improvement
The effective tax rate declined to 21.1% from 22.7% in the prior year, driven by an increase in tax benefits recognized on share-based awards.
Shareholder Returns
The Board maintained the quarterly dividend at $0.65 per share, and Casey's repurchased approximately $46 million of shares during the first quarter.
Cheese Cost Tailwind
Cheese costs were $1.93 per pound versus $2.11 per pound in the prior year, a 9% decrease and an approximate 45-basis-point benefit to margin. Casey's was approximately 80% covered through early in the first quarter of the next fiscal year and expected a modest margin tailwind in each of the three out quarters of the current fiscal year.
Wings Expansion and Incremental Occasions
The wings offering was performing well in 850 stores, with the next tranche of stores scheduled to begin rolling out later in the month. Approximately 38% of guests who purchased wings placed a wings-only order, and those guests increased their overall prepared food purchase frequency by approximately 30%. The Des Moines DMA was up 46% year over year in the quarter.
Nicotine Alternatives Growth
Nicotine alternatives increased 47% in the quarter. Management said the category is beginning to replace lost combustible-cigarette volume, although not yet on a one-for-one basis. Nicotine margins are double those of combustible cigarettes, and Casey's has increased space allocated to nicotine alternatives.
Liquor and Ready-to-Drink Cocktail Strength
Ready-to-drink cocktails increased more than 30% in the quarter and helped offset some of the drag from beer.
Competitive Pricing Position
Management reported no unusual or different activity from the convenience-store competitive set. Casey's single-topping pizza is priced approximately $3 below national brands on average, about half of Casey's stores do not have a national-brand pizza competitor, and the pricing gap versus pizza QSRs widened during the quarter as Casey's took minimal price while pizza QSRs took more price.
Texas Growth Opportunity
Management said Cefco stores and new-to-industry stores in Texas were performing very well. Cefco stores were generally higher-volume than Casey's average, and remodeled stores were generating prepared food and dispensed beverage lifts of more than 30% year over year. Management described the area outside Dallas, Austin, San Antonio, and Houston as having a long runway for Casey's growth.
Favorable M&A Environment
Management said the M&A environment remained favorable, possibly even better from a buyer's perspective. Multiples were relatively flat, while the EBITDA of smaller operators had declined, resulting in lower absolute prices for some assets.
August Trends Within Guidance
August same-store volumes inside and outside the store were consistent with first-quarter results and within the annual guidance range. Fuel CPG was in the low $0.40 per gallon, current cheese costs were slightly favorable versus the prior year, and second-quarter operating expense growth was expected to be similar to the first quarter.
Community Giving Record
Casey's Cash for Classrooms campaign raised more than $1.8 million with support from guests, team members, and Coca-Cola, setting a new record and funding grants for schools, students, and teachers.
DE:CS2 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed