What caused CASY's Q3 2025 earnings to beat forecasts?

Casey's General Stores, Inc. (CASY) reported stronger-than-expected fiscal Q3 2025 earnings, driven by several key factors:

1. **Increase in Total Revenue**: Casey's reported a 17.3% increase in total revenue, reaching $3.90 billion, surpassing the Zacks Consensus Estimate of $3.72 billion. This growth was fueled by robust sales growth inside and outside the store.
2. **Strong Performance in Fuel Sector**: The fuel operations showed strength with same-store fuel gallons increasing by 1.8% and total fuel gross profit rising over 17% to $302.1 million. Despite a slight drop in retail fuel prices during the quarter, the fuel margin per gallon remained stable at $0.364.
3. **Growth in Dispensed Beverage Sales**: There was notable growth in dispensed beverage sales, which contributed to the increase in total revenue.
4. **Inside Same-Store Sales Growth**: Inside same-store sales jumped 15.3% year-over-year to $1,400.4 million. This growth was driven by strong performances in the prepared food and dispensed beverage categories.
5. **Store Expansion and Acquisition**: The acquisition of Fikes Wholesale last November, which added 198 stores across Texas, Alabama, Florida, and Mississippi, brought the total number of stores to nearly 2,900. This expansion has contributed to the growth in sales and revenue.
6. **Operational Efficiencies**: Continued operational efficiencies led to a reduction in same-store labor hours for the 11th consecutive quarter.

These factors, combined with effective pricing and product optimization strategies, have driven the company's strong third-quarter performance, surpassing both earnings and revenue expectations.